Picture this scenario.
Someone steals your personal information and uses it to apply for credit under your name. But you have no way of knowing about this activity simply because you never check your credit report. One day you apply for a loan but to your surprise, the request was declined.
This scenario can easily happen to you credit alert services can help you prevent it – or, at the very least – find out quickly and take measures to stop it before too much damage is done. Credit monitoring tracks activity on your credit report and alerts certain activity. Should someone open a new account in your name or make a query, you receive credit alerts so you can take appropriate action.
Many instances of identity theft go undetected. Credit monitoring is an important tool that not only helps you stay on top of your credit, but also protects against identity theft. The following is how you can benefit with a credit alert service.
Reduces Financial Impact
Identity theft causes millions of dollars in the financial damage every year. Getting notifications of activity means that you can take immediate action to contact the credit issuer and close the account before it starts to negatively affect your credit. This helps to reduce the financial impact and recover your identity.
The best credit monitoring service tracks activity from all three major credit bureaus and monitors public records. A number of services also provide monthly updates of your credit score. If you notice that your score is taking a sudden dive, you can take steps to understand why. Having this information is absolutely invaluable especially if you plan to apply for a mortgage in the near future.
Peace of Mind
Credit alert services provide extra peace of mind. If anything you don’t recognize pops up on your credit report, you can investigate and take action. The alternative is requesting a copy of your credit report and checking all items. But the reality is that you can only get a free copy of your credit report once a year – and this isn’t enough to identify changes that could indicate fraud. Credit monitoring then means one less thing to worry about.
When choosing a credit monitoring service, be sure to do your homework ahead of time and read several reviews before making a decision. Some services offer free or low cost introductory trials.