The Best Way to Monitor Your Credit (Free and Paid Options)

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Credit monitoring means watching your credit reports for changes: new accounts, late payments, hard inquiries and balances. It’s the fastest way to catch identity theft and errors before they cost you a loan or a better rate. Here’s how to do it well.

What good monitoring covers

• All three bureaus. Equifax, Experian and TransUnion each have different data. Fraud can show up on one and not the others.
• Real-time alerts for new accounts, inquiries and address changes.
• Your scores over time, so you can see what’s helping or hurting.
• Identity protection, such as dark web alerts and help restoring your identity.

My #1 pick: SmartCredit

SmartCredit gives you three-bureau reports and scores, alerts when anything changes, and tools that show how different moves (like paying down a card) could affect your score. It’s the service I recommend to clients preparing for a mortgage, because it lets you see what a lender will see and fix problems before you apply.

Free options

• Credit Karma: free TransUnion and Equifax monitoring (VantageScore)
• Credit Sesame: free TransUnion score with daily refreshes
• AnnualCreditReport.com: free reports from all three bureaus, every week
• Your bank or card issuer: many show a free FICO score

Free tools are a great start, but they usually cover only one or two bureaus. See Credit Sesame vs. Credit Karma for how they compare.

Don’t forget a credit freeze

Monitoring tells you when something happens. A credit freeze stops it from happening. Freezing your credit at all three bureaus is free and blocks new accounts from being opened in your name. You can unfreeze it any time you apply for credit. It’s the single best protection against identity theft.

What to do when you get an alert

1. Check whether you recognize the account or inquiry.
2. If it’s fraud, freeze your credit and report it at IdentityTheft.gov.
3. If it’s an error, dispute it with the bureau. Dovly can automate TransUnion disputes, and our dispute guide covers all three bureaus.

Thinking about buying a home? Start monitoring at least three to six months before you apply. The Rate Update can review your credit with you before you apply.

Frequently asked questions

Is credit monitoring worth paying for?

If you’re preparing for a mortgage, have been in a data breach or are rebuilding credit, three-bureau monitoring is usually worth it. Otherwise free tools plus a credit freeze cover most people.

Does credit monitoring hurt my score?

No. Monitoring uses soft inquiries, which don’t affect your score.

Is a credit freeze better than monitoring?

They do different jobs. A freeze prevents new accounts, and monitoring alerts you to changes on existing ones. Use both.

Affiliate disclosure: some links on this page are affiliate links, and we may earn a commission if you sign up, at no extra cost to you. Dan Frio | NMLS #246527 | PBT Bancorp | NMLS #257781. Mortgage products are originated by PBT Bancorp, NMLS #257781. Equal Housing Lender.