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Importance of credit monitoring

08-April-2015 written by : FSI-Team

Credit Monitoring services alert individuals about changes to their credit report instantly- either via email, the instant message on mobile phones or by phone calls. Many people use credit monitoring services to help them watch their credit histories and to increase their ability to recognize a fraudulent activity.

Credit Monitoring services alert individuals about changes to their credit report instantly- either via email, the instant message on mobile phones or by phone calls. Many people use credit monitoring services to help them watch their credit histories and to increase their ability to recognize a fraudulent activity.

Some Credit Monitoring services are provided directly through one of the three major credit reporting agencies- in which case you will just have access to that particular credit report. Some other agencies may provide access to all three reports and give you unlimited access- while some may just update your credit reports like clockwork. If you think that credit monitoring services of just one credit rating agency is sufficient, then you may not be right!

You would not see the fraud until the car is approved and shows up a month later on your credit report as a new account and the thief is driving around with the car! Having credit monitoring on all three of your credit reports would alert you to the inquiry of your credit report before the account is approved- and you could take action before it goes any further.

So how can credit monitoring stop identity robbery? The answer is it can't. The main thing credit monitoring can do in regards to identity robbery is to let you know that it is occurring. Another issue is many shoppers purchase credit monitoring because they are so occupied it would be impossible to learn about their credit or simply don't want the responsibility of understanding it.

They think that paying a company to monitor their credit will insure them against any issues. In many cases when the monitoring company alerts them to a new collection or charge off, they don't recognize the account and simply disregard it as a slip and don't investigate the event until they have an issue getting financing. The lesson is actually while having credit monitoring you have to understand, at least, the basics of credit to recognize what is a cause and for what concern.

When a monitoring service alerts you that a change has happened and does not let you know what the details of the change are, we find consumers in a panic. They now know there is a change but don't have any idea what changed. You can be updated of an alert when a third party pulls your credit profile, if you are shopping for a car, home, or business loan. Credit is something which is not at all fixed and with the number of changes taking place on a day to day basis, these alerts could come all the time, on a day to day basis, week by week, or on a monthly basis, depending on the regular activity of your credit profile.


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