Credit issuers look at credit scores to determine creditworthiness and how much a borrower can qualify for. Higher scores generally mean better rates and terms while lower scores could mean having an application denied. Most consumers are aware of the importance of maintaining good credit.
But the reality is that many consumers have no idea what shows up on their credit report. Cases of identity theft or fraud may go unnoticed for some time until it comes time to apply for credit. This is where credit monitoring services come in.
Here is more information on what these services are and what you can expect.
What Are Credit Monitoring Services?
Credit monitoring is particularly beneficial as it provides tracking of your credit report. You receive notifications of certain types of activity such as recent accounts opened in your name. This allows you to take immediate action to resolve any errors or inaccuracies.
Credit check monitoring services are on the lookout for activity that could indicate identity theft. If you want a way to stay on top of your financial health, credit monitoring may prove to be invaluable for you.
How Does Credit Monitoring Work?
Each service is different but the general concept remains the same.
With credit report monitoring, you are able to stay more up to date on your credit files. The main feature of these services is being able to receive notifications of certain activities. This helps to protect against identity theft so you can take immediate steps to limit your liability.
Some services even provide frequent updates on your credit score and monitoring of your personal information online. These features help you stay aware of what is happening with your credit.
Are They Worth the Cost?
You might be wondering if credit monitoring is worth the cost. Fees for such services vary but are typically based off monthly subscriptions.
Any instance of identity theft can be extremely harmful to your credit and finances. If credit monitoring is able to help you detect fraud that would have otherwise gone unnoticed, then the service will have already paid for itself. But it is ultimately up to you to decide whether the cost is worth it.