What Is Credit Monitoring?

Credit monitoring services track your credit reports and alert you to changes, helping detect identity theft and unauthorized activity quickly.

Types of Credit Monitoring

Free Credit Monitoring

Sources:

  • Many credit cards offer free monitoring
  • Banks often provide basic monitoring
  • Credit Karma (free, supported by ads)
  • Credit Sesame (free with upsells)
  • Annual credit reports (AnnualCreditReport.com)

Paid Credit Monitoring

Cost: $10-$30/month

Providers:

  • Experian IdentityWorks
  • TransUnion TrueIdentity
  • IdentityForce
  • IdentityGuard
  • LifeLock (Norton)

What Gets Monitored

Credit Report Changes

  • New accounts opened
  • Credit inquiries
  • Balance changes
  • Address changes
  • Public records (bankruptcies, liens)
  • Collection accounts

Additional Monitoring (Paid Services)

  • Dark web scanning for your data
  • Social Security number monitoring
  • Court records
  • Non-credit data sources
  • Bank account takeovers
  • Payday loan applications

Single vs Three-Bureau Monitoring

Single Bureau

  • Monitors one credit report
  • Less expensive
  • May miss fraud on other bureaus

Three-Bureau

  • Monitors all three reports
  • More comprehensive
  • Higher cost
  • Best protection

Key Features to Look For

  • Real-time or daily alerts
  • Mobile app with push notifications
  • Credit score tracking
  • Identity theft insurance
  • Resolution assistance
  • Dark web monitoring
  • Lost wallet protection
  • Family plan options

Do You Need Paid Monitoring?

Free May Be Enough If:

  • You have credit freeze in place
  • You check reports manually quarterly
  • You're not at high risk
  • Your credit card offers good monitoring

Consider Paid If:

  • You're an identity theft victim
  • Recent data breach exposed your info
  • You want comprehensive three-bureau monitoring
  • You want dark web scanning
  • You need resolution assistance

Limitations of Credit Monitoring

  • Alerts you AFTER fraud occurs
  • Doesn't prevent identity theft
  • Can't stop existing account fraud
  • May have delayed alerts
  • Doesn't catch all types of theft

Credit Monitoring vs Credit Freeze

Monitoring

  • Detects fraud after it happens
  • Allows normal credit activity
  • Often costs money
  • Passive protection

Freeze

  • Prevents fraud before it happens
  • Blocks new credit applications
  • Free by law
  • Active protection

Best Approach

Use both: Freeze for prevention + monitoring for detection

Alternatives to Paid Monitoring

DIY Monitoring

  • Request free report every 4 months (rotate bureaus)
  • Use free credit card monitoring
  • Set calendar reminders
  • Review bank statements weekly
  • Place fraud alerts

After Data Breach

Many breached companies offer free credit monitoring:

  • Usually 1-2 years
  • Often three-bureau monitoring
  • Sign up even if you have paid service
  • Set calendar reminder before it expires