Credit Watch

Credit watch refers to a variety of special programs offered by credit rating agencies and financial institutions to monitor an individual's credit report for any credit-related changes. The individual is notified of these changes which allows the person to act on any red flags before they can have a detrimental effect on credit score/history if the activity is fraudulent. Subscribing to such a service can also be used as a form of protection against identity theft.

Most of these credit watch paid services will notify the individual within a business day whenever a credit application is made and shows up on your credit report. The intent of this service is to alert individuals of changes to their credit reports. These updates make it easier to determine whether personal information has been compromised.

For example, Robert has signed up for Ernie's credit watch service. Ernie will monitor Robert's credit reports from the reporting agencies TransUnion, Experian and Equifax, for changes such as credit applications. A few weeks later, Ernie notices Robert has had a slew of credit applications for new credit cards, some of which are in different countries. Ernie alerts Robert that these applications have been made. Robert views his credit report and is able to dispute the applications and take additional measures against identify theft since his personal information has been stolen and used to open the fraudulent accounts.