What Is Credit Monitoring?

Credit monitoring has become increasingly important as cases of identity theft have increased over the last 20 years.¹ There were 441,822 cases of credit card fraud reported to the Federal Trade Commission (FTC) over the past year, making it the most common type of identity theft in 2022.¹

So how do you protect yourself against identity theft? Some steps may include keeping close guard of your personal information, staying on high alert for scams, and monitoring your personal accounts.² In this article, we’ll explore what credit monitoring is, how it works, and how effectively it can help protect your financial information.

Credit monitoring services regularly check your credit activity and changes in your financial behavior, like applications for new accounts, unknown devices accessing your accounts, and account access in locations you typically don’t frequent.³

Sometimes, identity thieves can open accounts in your name that you won’t know about until the damage is done.⁴ That’s why credit monitoring services can be helpful tools to safeguard your information and protect your credit.

In addition to credit monitoring, identity theft monitoring services can help monitor activity on your online bank accounts and look out for fraudulent purchases.³

Even if you’re cautious with your personal information, that doesn’t mean everyone who has access to your personal information will be. And as more sensitive information – including Social Security numbers and credit card information – is stored online, a data breach at an online retailer or medical office can have ripple effects and end with your sensitive information in someone else’s hands.⁵ 

Credit monitoring gives you peace of mind by immediately notifying you of any changes to your credit report.³ By confirming that you or your authorized user initiated any credit activity, you can prevent fraudulent charges from damaging your accounts or your credit history.

American Express^® MyCredit Guide is a free service that allows you to view your FICO^® Score and Experian^® credit report. (FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.)

Checking your credit report is free and easy with American Express^® MyCredit Guide – and you don’t have to be an American Express^® Card Member. Once enrolled, you can review your credit report and FICO^® Score without impacting your credit. You can also stay on top of your credit activity. With MyCredit Guide, you’ll be alerted if there are any changes to your credit report – including new accounts opened, new inquiries, and more.

Activity that you don’t recognize could include unfamiliar transactions or account changes. These could be simple errors, but in some cases, they may signal fraudulent charges or identity theft.

ID Monitoring keeps an eye on your profile information across a range of internet sites on the Surface Web, Deep Web, and Dark Web. If the service detects that your profile information such as your First Name, Last Name, Social Security Number, Date of Birth, Email Address, or Primary Address has been exposed or compromised, MyCredit Guide will alert you of the specific accounts exposed, as well as recommendations for actions you can take to help secure your data and identity.

MyCredit Guide credit report alerts will include instructions for you to immediately confirm that a charge or credit activity is fraudulent. If you find fraudulent activity on your credit accounts, you will need to get in contact with your credit card companies to begin the process of protecting your accounts.⁶ Your credit card issuer is likely to cancel the card that has been compromised and issue you a new one.⁶

Did you know? As an added security measure to help protect against fraud, American Express reports a reference number to credit bureaus – instead of your actual account number.

Your bank or credit card company may offer free credit monitoring services.³ Some credit knowledge services, like MyCredit Guide, do not provide a full array of credit monitoring services. However, MyCredit Guide creates credit alerts for card members and non-card members alike.

Paid credit monitoring services will bill you on a monthly or annual cycle. They may offer additional benefits, like dark web and public records monitoring and credit report monitoring from all three credit bureaus. These paid services may also offer insurance protection, meaning you may not be held liable for charges that occur when your identity is compromised.³

It’s important to understand what is covered by your credit monitoring service. If you choose a paid service, consider the factor that price plays in your budget, as some of these paid credit monitoring programs can cost several hundred dollars per year.⁷