The best credit monitoring services: What to look for

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Credit card fraud and identity theft are major problems for people throughout the United States. In 2023, the Federal Trade Commission (FTC) received over 410,000 reports of credit card fraud. One solution to this problem is to use the best credit monitoring services.

In addition to helping you spot fraud, they’re also a great tool to use when you’re trying to improve your credit. Here, we teach you about what credit monitoring is and how to find the best services. 

What is credit monitoring?

Credit monitoring is a great way to stay informed about everything happening with your credit report and your credit score. Credit monitoring is a tool to stop identity theft before it’s too late, but these services monitor other aspects of your credit as well. This can include: 

• Credit utilization
• Missed payments
• New credit accounts
• New credit inquiries

Many different factors affect your credit score, and credit monitoring companies offer an all-in-one service to help you stay up to date.

What are the benefits of credit monitoring?

Credit monitoring services track your credit score and credit report. Many people take steps to prevent identity theft, but it can still happen. The problem many people run into is that they catch it too late. Using credit monitoring services can help you detect identity theft early on so you can take action.

Credit monitoring is also helpful because it alerts you to changes to your credit report, and if you’re trying to improve your credit score, this is a simple way to see what’s helping or harming your credit.

Sometimes, your information is stolen from a company that also has your data. For example, a report from the Identity Theft Resource Center (ITRC) shows that there were over 1,800 data breaches in 2022 that affected 422 million people total.

Not only can this type of fraud harm your credit, but those who steal your information can use it to create new accounts that may put you in debt.

Do free credit monitoring services work?

Free credit monitoring services are available, but they require a more do-it-yourself approach. The free services provide information about your credit score and report, but they won’t act on your behalf. For example, if you receive an alert about identity theft, you should freeze your credit accounts. 

The free services may not monitor all of the major credit bureaus, either. Some of these services only check one or two bureaus. Your score may be different for different bureaus, so it’s important to keep an eye on all three.

On the other hand, paid services typically provide: 

• Advanced alerts: Some paid services will tell you if your information is part of a data breach or is on the dark web. They may also monitor bank account activity and public records.
• More frequent credit updates: Free services may only update your credit score once a month, but some paid services update daily or weekly.
• Identity theft protection: Many paid services include ID theft insurance for additional protection.

If you don’t mind doing some of the work, some of the free services may be right for you. You can try a paid service for some additional credit monitoring features and services.

How to find the best credit monitoring service

There are many different credit monitoring services to choose from. They can vary by price as well as the tools they offer. Each person’s situation is different, so choosing the best credit monitoring service depends on what you’re looking for. 

Consider the following before choosing one:

• Cost: You should compare prices, but also keep in mind that the least expensive option may not be the best option. 
• Free trials and guarantees: Some services offer a free trial or money-back guarantee.
• Credit-building tools: If you’re trying to build credit, look for services that provide tools like additional credit reporting and credit monitoring.
• Credit report and score updates: The frequency of updates may differ from service to service.
• Additional monitoring: You may not be aware of data breaches or other situations where your information is leaked. If this is a concern, additional monitoring can help.
• Discounts: There are some services that offer discounts for families looking for credit protection and monitoring.

Should you pay for a credit monitoring service?

For those who pay for a credit monitoring service, it can be worth it and can also offer some additional peace of mind. Many of the paid services provide additional monitoring and protection in the case of identity theft. They can also take on the task of freezing your credit cards if your identity is stolen.

Each of the credit monitoring services offers different tools, so it’s important to decide which ones matter the most to you. 

Credit monitoring services from the credit bureaus

The three major credit bureaus are TransUnion®, Experian® and Equifax®. Keep in mind that they often cost more than other services while providing less value, and they may not have high levels of security to protect your information as well. In the past, there have been major news stories about data breaches leaking customer information, many of which have resulted in a settlement for affected customers.

What credit monitoring services can’t do

Before signing up for a credit monitoring service, it’s helpful to know the limitations of these services as well. While credit monitoring can help provide you with alerts and some protections, there are things they can’t do. 

These services are unable to prevent:

• Someone opening up accounts in your name
• Identity theft
• Credit card fraud
• Taxpayer identity theft
• Credit repair services

Can credit monitoring prevent identity theft?

Credit monitoring services can’t prevent identity theft, but they’re useful for knowing when it happens. The consequences of ID theft get worse as time goes on. When you’re unaware of the theft, nefarious individuals can put you further into debt, open up new accounts and commit other illegal acts with your information.

When you use credit monitoring, you can apply a credit freeze to your accounts before things get too bad. Preventing identity theft requires additional due diligence. This can include:

• Avoiding phishing emails designed to steal your information
• Using complex passwords
• Not reusing passwords for multiple accounts
• Keeping your information private whenever possible 

Is credit monitoring right for you?

Everyone can benefit from credit monitoring. It helps you keep tabs on your credit score and report, which is an important aspect of improving and maintaining a good credit score. In addition, credit monitoring also lets you know if there are issues like derogatory marks or errors on your report, and it can help you spot identity theft. So the primary question you should ask yourself is whether you can benefit from the additional tools a paid service provides. 

Get started with credit monitoring today

At Lexington Law Firm, we offer credit repair. As a client, you also have access to credit monitoring, identity theft insurance, creditor interventions and lost wallet protection.
To get started with credit monitoring, sign up today. We also offer a free credit assessment so you can see exactly where your credit score is at.