By Renauld Smith
Industry Veteran & Executive Director of IAPDA
What is Credit Monitoring?
Credit Monitoring is a service that alerts you to any changes in your credit reports. If someone attempts to use your personal information to open a credit account, you’ll be notified immediately rather than months or even years later.
Besides new accounts opened in your name, credit monitoring will alert you to a new address or name changes to your credit file and of course suspicious activity such as unusual balance increases.
Why is Credit Monitoring important?
Monitoring your credit is important because it helps you to understand your financial standing and identify potential issues that may affect your ability to obtain credit in the future. Monitoring your credit score will give you an idea of how you are doing financially. It will help you to identify areas where you need to improve your credit score so that you can qualify for better credit terms and lower interest rates.
It will also identify errors on your credit report, that can lead to a lower credit score, which can make it more difficult to obtain credit and may also result in higher interest rates. By regularly checking your credit report and score, you can ensure that the information on file is accurate and up-to-date and address any errors or discrepancies that may be negatively impacting your score.
What to Expect With Credit Monitoring
24/7 Monitoring of Your Credit History
Protect your credit
Regular Alerts
Updates on soft/hard inquiries
IAPDA recommends an affordable Tri-Bureau Credit Monitoring Service that provides the needed tools to not only protect your credit reports but help identify potential consumer protection violations:
Credit MonitoringSuspicious Activity Notification
Receive alerts when large changes to balances or credit limits occur
Tri-Bureau Monitoring
Experian, Equifax and TransUnion
Can Credit Monitoring Help Recognize Identity Theft?
Another benefit of monitoring your credit is that it can help you to detect identity theft. By regularly checking your credit report and monitoring your accounts for suspicious activity, you can catch any unauthorized transactions or accounts that may have been opened in your name. This can prevent identity thieves from causing long-term damage to your credit and can help you to quickly address any issues that may have arisen.
Does Credit Monitoring Affect My Credit Score?
Credit monitoring has no impact on your credit score as it is considered a soft inquiry.
Should I Use A Free OR Paid Monitoring Service?
Free credit monitoring is appealing as everyone loves to save money. There’s nothing wrong with using a free service however, there are a couple of drawbacks consumers should keep in mind. All services that are free have a common denominator, advertising. When using a free credit monitoring service, you should expect to see financial advertisements quite frequently. If you sign up for an advertised product or service, the credit monitoring provider receives a commission.
Free services usually will not include access to all three credit reports. You’ll be able to review your information on one or two credit bureaus and usually you’re only able to download a credit report summary, not a full copy of your consumer credit disclosure. Paid credit monitoring services offer additional features such as your tri-bureau credit score, as well as more comprehensive support if you detect suspicious activity on your credit report.
IAPDA offers consumers a free credit report analysis and consultation by a consumer protection attorney
- Are your credit reports up to date?
- Is there any incorrect information that you do not agree with?
- Are you concerned about protecting your personal financial information?
IAPDA provides a no cost, hassle free Attorney Consultation for all consumers. Speak with a consumer protection attorney who will perform a detailed review of your credit report identifying any irregularities or potential violations eligible for dispute or litigation.
Click the "Free Consultation" button for a free consultation.
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