Credit monitoring services are one of the most important industries in finance today. In today’s world, a credit score is important and sometimes required to rent an apartment or borrow money. Some employers will check a potential candidates credit score before hiring them. This is especially true of jobs in the financial industry. First of all, a credit score and a credit check are two entirely different things. A credit score is a basically from a lifetime accumulation of making payments, both the amount and whether they are on time. A credit check, on the other hand, checks your credit score from the three major reporting agencies(Equifax, Experian, and TransUnion).
What is a Credit Report?
Credit reports are known for how many mistakes they have. According to some experts, over fifty percent of credit reports have errors on them. Errors on credit reports may mean that you can be denied a loan when you should not be, due to debt on your name you never signed up for. If errors are found on credit reports, you can dispute the error. However, even if it is cleaned up you may not see the results for up to a month, because banks refresh their credit data every thirty days. As you can see, just one discrepancy on a credit report can delay financing for several months.
The Power of Credit Scores
In today’s world, you should protect your credit score. If you have a low credit score, you can boost it by paying off old and bad debt, and getting a credit card and paying it off every month. To boost a credit score, there are a variety of different methods out there. To keep it simple, never have old debt that is left unpaid, pay all of your bills on time, and keep a credit card and pay it off every month. After making these changes, it can take one to two years to reach an acceptable credit score. However, the efforts and the wait will be worth the effort.
Why A Credit Monitoring Service?
With all of that being said, credit monitoring services are designed to diagnose a credit reporting problem quickly. Many services alert users when “bad” data shows up. For instance, on your credit report there is a bad debt for a $10,000 boat bought in the Cayman Islands. Instead of finding out years later when trying to buy a house, a credit monitoring service will alert you, so you can take action and remove the bad and incorrect debt for your name.
Overall, credit monitoring services are crucial in today’s world filled with identity theft. Keeping a close watch on your credit report can help to mitigate big headaches down the road, especially when trying to apply for credit of any kind. In today’s financial world, a credit score is very valuable and you should do everything in your power to keep it protected. Credit monitoring services are a valuable asset in protecting your credit and against identity theft in the marketplace.
What credit monitoring doesn’t do
There are no guarantees with credit monitoring. Its job is to provide you with alerts and resources when there is a chance of possible theft. With that being said, although it is designed to catch signs of fraud, it cannot guarantee fraud prevention.
Here are some things that credit monitoring can’t do for you:
- Stopping a person from opening any new accounts in your name.
- Help keep your persona details secure from data breaches.
- Keep your credit card from being skimmed.
- Alert you if money has been withdrawn from your bank account.
- Notify you if someone has filed a tax return with your name and if they actually collect the refund.
- Keep you from receiving phishing emails.
- Report fraud for you.
- Fix any credit report inaccuracies.
- Perform a credit freeze.