What is credit monitoring? – creditcards.com

As data breaches increase and methods of theft and misuse of your personal information by thieves proliferate, it is imperative to keep an eye on your credit.

There are several subscription-based services that can keep you up to date with changes to your credit report or notify you if your personal information has surfaced on the dark web. Most comprehensive services charge a monthly fee that may vary depending on your level of coverage, but there are also free credit monitoring services that some consumers may find adequate.

If you’re considering signing up for credit monitoring, it’s important to understand what services are available, what level of protection they offer, and whether you should be shelling out money in exchange for peace of mind.

What is credit monitoring and how does it work?

Credit monitoring services are designed to monitor your credit report for changes such as serious inquiries, new account openings, balances, and payments on your credit accounts, usually for a monthly fee. They usually also allow you to check your credit score.

Credit Monitoring may also monitor changes to your personal information, including changes to a new address or name, and any new public records that are added to your credit report.

These services typically scan the dark web to see if your personal information or other sensitive data has been exposed and identify potential scams. This information can help you respond quickly if someone steals your identity.

How much does credit monitoring cost?

The cost of credit monitoring services varies from about $9 to $40 per month. There are free credit monitoring services, although they tend to be less comprehensive. The most feature-rich credit monitoring services offer three-bureau credit monitoring, extensive fraud alerts, public and dark web scanning, monthly credit score and report updates, simulated rating changes, identity theft insurance, and more.

For example, TransUnion’s IdentityForce UltraSecure+Credit offers three bureau credit monitoring, bank and credit card transaction alerts, social security number tracking, dark web monitoring, identity theft insurance for up to $1 million or more, all for a monthly fee of $29.95.

Another paid service with reliable protection is IdentityGuard. Its top tier, which costs $29.99 a month, offers three bureau credit monitoring and scoring, as well as monitoring the dark web, high-risk transactions, your payment cards, your 401K and other investment accounts, and even the presence of criminals and sex. offenders in your area. Like IdentityForce, it offers identity theft insurance for up to $1 million.

Meanwhile, Experian’s free credit monitoring service offers monthly reports on changes to your Experian credit report, FICO score tracking, real-time notifications of suspicious activity on your credit report, and expense tracking.

Another free option is Capital One’s CreditWise, which includes access to a credit score, monitoring your TransUnion and Experian credit reports, and tracking social security numbers.

Pros and cons of credit monitoring

Credit monitoring services can be useful, especially for those who are at risk of identity theft or are concerned about possible data leakage. However, you must weigh the pros and cons of using a paid or free service.

pros

• Credit monitoring services keep track of your credit reports and scores and alert you when changes are made so you don’t have to constantly check it yourself.
• You can react quickly if someone has stolen your identity.
• With a family plan, you can protect your children from identity theft.

Minuses

• Credit monitoring services cannot guarantee fraud prevention because they cannot prevent anyone from applying for a loan or opening new accounts in your name.
• In addition, credit monitoring cannot stop data leaks, prevent credit card skimming, or warn you if someone files a tax return in your name and receives a refund.
• These services may come with hidden fees or cancellation requirements.

Should I pay for credit monitoring?

Whether you decide to pay for credit monitoring or use the free service depends on the level of service you want.

Paid credit monitoring services may offer the ability to track all three of your credit reports and scores through a single account, as well as higher identity theft coverage amounts. They can also provide more protection for families.

Free credit monitoring services usually don’t give you access to all three of your credit reports and may only offer customized plans.

Note that there are ways to control your credit without spending a dime. Many major credit cards offer free access to your credit score in your online account. And you can access your credit report from three credit bureaus – Equifax, Experian and TransUnion – for free weekly until 2023 at AnnualCreditReport.com.

Including a credit block or security feature that makes it difficult to open new accounts in your name with the three major credit reporting agencies is a great way to prevent these agencies from making your credit report public. In addition, there is no fee for freezing or unfreezing a loan.

In addition, the fraud alert requires the lender to take certain steps to verify your identity before opening new credit accounts. You only need to notify one of the three credit bureaus to place a fraud warning on all your credit reports.

bottom line

Credit monitoring can be a useful tool to help you stay on top of your credit and your financial security, but it is not a panacea for fraud. And it’s not always worth paying for, unless you want comprehensive coverage that you can’t get for free.

Some services may offer you adequate protection for free. They can be very effective when combined with free credit reports from AnnualCreditReport.com, free credit scores on your credit card accounts, and other free services such as credit freezes and fraud alerts.

Regardless of which type of service you choose, it’s important to know what’s on your credit report and check your credit score regularly.