Why Credit Monitoring Services?
- Security – receive instantaneous security alerts and defend yourself against identity theft.
- Frequent Reports – enables you to isolate fluctuations in your credit score immediately.
- Error Correction – get expert credit report analysis and assistance in correcting erroneous reports.
- Accessible Information – provides credit information to subscribers in jargon-free layman’s terms.
- Efficient Credit Repair – monitor increases in your credit score as you repair your credit.
Credit Ratings are Susceptible to Fraud
Credit reporting issues that have been caused by identity theft, and other credit report problems, will have a negative impact on credit ratings. To prevent this type of negative financial impact, credit monitoring services can be utilized in order to assist financial reporting stability. The goal of credit monitoring is to provide an additional layer of protection to one’s finances. This can have an effect on many different facets of life, such as buying home to obtaining employment.
The Definition and Origins of Credit Monitoring
Credit monitoring is most often used as a form of protection against the digital theft of one’s identity. In our digital age, a large amount of personal information is stored in the realm of cyberspace. There, skilled computer hackers are waiting for the opportunity to gain access to items such as addresses, Social Security Numbers and credit card information.
The Federal Trade Commission has reported that over 10 million consumers fall victim to some form of identity theft annually. This makes identity theft one of the fastest growing crimes in both the United States and Canada. As a result of this growing epidemic of identity theft and credit fraud, the three major Credit reporting Agencies (CRAs), Equifax, TransUnion and Experian began offering credit monitoring services to the public. Since then, a number of other credit monitoring services have become available.
How Credit Monitoring Works
For a stipulated fee, a credit reporting agency will monitor a person’s credit from either one or three main credit reporting agencies. Reports can be obtained from the consumer credit reporting bureaus on request from all the agencies simultaneously. This is done through a combination of technologies that can detect the early stages of identity theft. Notification would be given, for example, if anyone is attempting to apply for an account using a credit monitoring customer’s Social Security Number. This is also true if someone is accessing their credit report. If these actions are being initiated through fraud, then there is the opportunity to quickly investigate the situation. At that point, a halt to any suspicious activity can be achieved.
Other Aspects of Credit Monitoring
Credit Monitoring can also provide a complete detailed history of credit reports. Credit reports that have been monitored for a one-year period can provide an overall picture of credit expenditures. Mistakes that are observed can be immediately addressed by contacting the credit bureaus. This way, they can properly amend the reports. In addition, accounts that are no longer in use can be permanently closed. This will prevent personal information accessibility. Learn more here.
Of course, credit monitoring is not considered completely fool-proof protections against credit security issues. However, there are many ways that the average consumer can reduce the possibility of identity theft which may include:
• Not responding to unsolicited emails requesting personal information
• Shredding bills, with personal information, before throwing them in the trash
• Not using simple passwords on accounts (birthdates, repeated numbers, etc.)
Also, credit monitoring agencies will usually suggest that a three-bureau credit monitoring package is the best defense against identity theft occurrences. In this way, a consumer will be alerted if any of three major credit reporting agencies is experiencing suspicious activity.
Credit Monitoring is an available option for those individuals that have a valid concern regarding identity theft. It is also useful for providing a credit report overview. However, in addition to using a Credit Monitoring service, consumers should also be aware of the things that they can do in order to limit the possibility of credit report issues and possible identity theft.
The complete detailed benefits of any credit monitoring service will be provided, in writing. This will assist the buyer with understanding what that particular service has to offer. Since various services can offer different options, reading these details will give a complete picture as to the type of protection that is being offered.