Credit Monitoring Services: Are They Worth the Cost?

Credit monitoring services keep an eye on your credit reports and alert you to changes so you can act. Here's how to decide if you need one.

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Updated Apr 17, 2025 11:48 a.m. PDT · 3 min read

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What is credit monitoring?

A credit monitoring service monitors your credit and alerts you when a new credit application has been made in your name. For example, if you had a credit monitoring service and someone opened an account, you would get an alert. You'd also be alerted if an authorized user was added, or if your credit score or credit reports change.

Some credit monitoring services may also offer alerts about large transactions, credit limit increases and changes to personal information such as your address.

What are the pros and cons of credit monitoring?

Credit monitoring services often market themselves as safeguards of your credit profile. But that’s not quite the case. Here are some benefits and downsides of credit monitoring services:

Pros

Detects potential fraudulent activity so you can act quickly.

Another way to track your credit score and access your credit reports.

An added layer of protection that can provide peace of mind, especially if you've already been a victim of identity theft or fraud.

Some services offer score simulators and educational tools that can build stronger credit habits.

Cons

Can’t prevent identity theft or credit card fraud— it’s a reactive not proactive solution.

Paid services can get pricey and might not do much more than what you can for free.

Not all services monitor all three credit bureaus, creating a gap in protection.

Lots of alerts and notifications can be confusing and next steps might be unclear.

How much does a credit monitoring service cost?

Credit monitoring services can cost up to $360 per year for individual plans. Family plans can cost somewhere between $300 and $500 per year. Most services also offer monthly payment options.

Are credit monitoring services worth it?

The value of a credit monitoring service depends on how much work you want to put in. You can do your own credit monitoring for free, and even prevent fraud risks by freezing your credit. But credit monitoring may make sense if:

You’ve already been the victim of identity theft or you are at a high risk of it — for instance, if your Social Security number already has been disclosed in a data breach or you’ve lost your Social Security card.
You don’t want to freeze your credit reports.
You know that you won’t monitor your credit.

Before signing up, review the services included, when and how you can cancel, and what your rights are if the service doesn't protect you. Look for a service that specifically promises "three-bureau credit monitoring" — if a service covers only one credit bureau, you’re paying for partial protection.

What about credit bureau products?

If you are buying credit monitoring, avoid the offerings from Equifax, Experian and TransUnion. Here's why:

These may not offer much identity theft coverage, despite costing as much as other companies' offerings.
Most credit bureau plans only monitor data from that bureau, leaving a gap in protection.
Credit bureau monitoring plans typically have an arbitration clause in their terms of service. When you sign up, you must waive your right to a class-action lawsuit and agree to binding arbitration, which widely is considered to be against a consumer’s best interests.

Are there free credit monitoring services?

Some banks offer free credit monitoring, and these services are open to anyone — not just customers. For example, CreditWise from Capital One and Chase Credit Journey are free and open to anyone, not just cardholders.

However, these services do not report to all three credit bureaus and require users to be 18 and older with a valid Social Security number.

» Learn more about how to prevent identity theft

What are the limits of credit monitoring services?

Here’s a reminder of what even the best credit monitoring companies can’t do:

They can’t prevent identity theft or credit card fraud.
They won’t always take next steps to help you if you are a victim of identity theft or fraud. You’ll likely have to handle credit bureau disputes and other resolutions on your own.
They can’t keep you from receiving phishing emails — or from opening them.
They can’t keep someone from applying for credit in your name.
They won’t correct errors on your credit report.
They won’t stop taxpayer identity theft.

Can I protect my credit for free?

Yes. Get a credit freeze, which blocks access to your credit reports: Experts consider a credit freeze the strongest protection from criminals accessing your credit without permission. You can freeze (and unfreeze) your credit online, with a phone call or by mail to the three major credit reporting agencies: Equifax, Experian and TransUnion.

Check the detailed information on your credit reports: You can get free credit reports each week from the three major credit reporting agencies using Annualcreditreport.com. If something is wrong, you can dispute credit report errors.

Consider adding a fraud alert to your credit file: A fraud alert requires potential lenders to call you and verify your identity before a new line of credit is opened in your name. The basic alert is free and lasts one year, but it can be renewed. An extended fraud alert lasts for seven years and is for identity theft victims who have filed reports with the Federal Trade Commission. It’s renewable, too, but only if paperwork is resubmitted after seven years. If you place a fraud alert at one of the three credit bureaus, the other two are notified and similar fraud alerts are placed on those accounts, too.

Look for existing options: Your bank, employer or credit card issuer may offer free or discounted access to credit monitoring services.

» Get your free credit report from NerdWallet

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