As identity theft cases increase and big data breaches become a regular occurrence, people increasingly rely on credit monitoring services for monitoring their credit reports and suspicious activity. But with all the opportunities available online, how do you know how many (if any) you want? Here are some factors to weigh in the decision on credit monitoring and how many services to go with.
As much as credit monitoring is an important process, its primary goal is to ensure that consumers can repay their debts promptly.
A credit monitoring service is a service that obtains your credit reports from the three major credit reporting agencies (Experian, Equifax, and TransUnion) and reviews the reports periodically. Some offer the update of the blog daily, while some may do it less often. They alert you to key activity as They alert you to key activity like:
- New credit inquiries
- Accounts created in your name are accounts that you have recently created.
- Late payments
- Changes of address
- Negative information added
That way, you are aware of all your credit and can identify any fraudulent activities that may harm your scores before they get worse. It also helps in the preservation of your identity since through monitoring, you will be aware if someone tries to open credit in your name.
How many services does an individual require in their lifetime?
The primary aspect that can be derived here is the cost in exchange for the convenience gained. It is, however, advisable to subscribe to one or two of the basic monitoring services to suffice the monitoring with the three major credit bureaus. With most monitoring services being monthly subscription-based services, getting hold of too many can just be ridiculously and financially impractical.
Here are some guidelines as you decide: Here are some guidelines as you decide:
No Service Needed If you already monitor your credit reports independently using the AnnualCreditReport. com and keep yourself updated with the notifications from your credit card companies, then you may just be overpaying for credit monitoring services. What works about this route is that if you are willing to have the diligence of reminding yourself about these items often then it can be useful.
One Service For the majority of people, having at least one of the basic services is advised as they have some utility in offering convenient access to reports and alerts at regular intervals in one location. Still, this option may suit you well if you need monitoring but do not wish to spend lots of money. Consider a service that reports regularly to all of the bureaus.
Two Services Some finance gurus advise consumers to sign up for at least two credit monitoring services in the hope of getting a backup if the first firm they signed up for fails. It amplifies the chances of missing an important event because if one company for some reason does not notify you of new activity, then the chances of both missing something when using two services are high.
Select two companies that track the data daily and have the features you need in terms of alerts and reports. Ensure that the credit monitoring services include all three credit bureaus.
Three Services Registering an account with each one of the three credit reference agencies gives direct access to reports in the shortest time possible. On the other hand, subscribers should be prepared to part with more cash on subscription fees. Another issue to prepare for is the management of three alert systems throughout the bureaus. Determine if that level of layering is required depending on the circumstances you are dealing with.
Extra note – credit freezes In terms of guarding identity, for those extremely worried about it, experts often suggest credit freezes over any monitoring service. Freezes lock your files, so no one can access your credit reports without you first unlocking them, which is something thieves cannot do when setting up new credit accounts. This keeps them locked out of employment opportunities regardless of what the credit report indicates.
Freezes do involve actively freezing and unfreezing your reports whenever you apply for credit, thus halting constant passive observation. However, for the people who have been victimized by identity theft or are very sensitive about security, freezes offer something that credit monitoring does not.
Basic Things to Consider When Searching for a Credit Monitoring Service If you decide to employ a credit monitoring service then you need to look specifically for the one that would cost you less and that meets all your requirements. Key things to seek out include:
- To fully protect yourself, you need to monitor your credit report with all three credit reporting agencies.
- Users should check for new activity on the relevant forum at least once a day.
- Email notification – Alert that can be modified and delivered to the user in real-time by an email or an SMS text message.
- Convenient credit report and score readiness
- Identity theft insurance and resolution services offer
Subscription fees are also an important aspect that should not be overlooked. Stay away from the services that cannot be canceled easily and the ones that need high initial payments. Ensure that companies provide information on cancellation policies to help with planning and adjusting the monitoring requirements in the future.
Think it through It’s important to consider the benefits and drawbacks of the available solutions in the field and evaluate them based on your personal finances, requirements, and optimal level of risk. If you pay per month for all the services that aren’t that necessary, the cost will accumulate. However, cost-cutting might expose some opportunities for identity thieves to capitalize on. Work out the right balance by identifying the number of monitoring services (hopefully zero) that apply to your circumstances.
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