Credit Monitoring Services

Credit monitoring services are commercial offerings that track information in a consumer's credit files and notify the consumer when certain changes appear. They are distinct from the free credit reports available under the Fair Credit Reporting Act. The three national credit reporting companies — Equifax, Experian, and TransUnion — maintain separate files, and many monitoring services obtain data from one, two, or all three. Some services also monitor other records, such as public records, dark web data, or identity-theft-related databases, though the exact scope depends on the product. Typical alerts may cover a new inquiry, a new account, a change in an existing account's balance or status, a new address, or a public record. The timing and delivery method vary. A monitoring service may send an email, text message, or app notification after it detects a change. Because credit reporting companies receive data from lenders and other furnishers on different schedules, an alert may appear before or after the underlying event is reported to all files. Monitoring is not the same as a credit report dispute, a security freeze, or a fraud alert, although some products include tools for those actions. Consumers can obtain free credit reports from each national credit reporting company through AnnualCreditReport.com. Federal law also gives consumers the right to dispute incomplete or inaccurate information in their credit files, and to place fraud alerts or security freezes in certain circumstances. Monitoring services do not replace those rights, and no service detects every instance of fraud or identity theft. An alert indicates that something changed; it does not by itself prove that fraud occurred or that a credit report contains an error. Consumers who receive an unexpected alert can review the relevant report, contact the furnisher or credit reporting company, and use IdentityTheft.gov if identity theft is suspected. Some credit monitoring services are sold as standalone subscriptions, while others are bundled with banking, insurance, or identity-protection products. Pricing, cancellation terms, and data sources differ. Differences among services include which credit reporting companies are covered, what kinds of alerts are included, how long alert history is retained, and whether the service provides access to free reports or dispute tools. The Consumer Financial Protection Bureau and the Federal Trade Commission publish consumer information about credit reports, disputes, and identity theft.

A consumer who has a credit monitoring service might receive an alert that a new inquiry appeared on one credit file after applying for a store credit card.