Monitoring of the 3 major credit reporting agencies is a mandatory necessity that all consumers should consider. The reason that so many people do not use this service is due to the lack of knowledge of how credit bureau monitoring actually works. In this article I hope to shed some light on this topic.
Credit monitoring is a service that monitors every single change that occurs on your beacon score report. It will let you know when there is a new inquiry for your report. Additionally, it will also let you know when your score rises or falls. Furthermore, you will be alerted when new account is applied for or created in your name.
How Does Credit Monitoring Work?
Credit monitoring works similar to a home alarm system. Just like an alarm system it alerts you when something fishy may be going on and sometimes there are false alarms, but only you would know that. In addition to keeping your report secure from thieves, monitoring also helps people who are rebuilding their score. Frequent alerts helps to monitor repair progress.
How Much Does Credit Monitoring Cost?
There are several companies online that offer safeguarding of FICO reports so the price may vary. Generally someone can expect to pay less than a dollar a day to protect their investment. Your rating is definitely an investment worth protecting because credit will be involved in just about every major purchase you will make in your lifetime.
Why Should I Consider Credit Monitoring?
It definitely is not a requirement for anyone to secure their profile. A person should only consider credit monitoring if they are serious about building a good history and maintaining it. Maintaining good standing with the credit bureaus is far more than just paying bills on time, you also have to watch for identity thieves, errors by creditors and errors by credit reporting agencies.
The likelihood of errors in a credit report is more probable than many people may think. Mistakes on a credit report is not always attributed to a stolen identity. Common errors can occur from an ex spouse, someone who shares the same name or just plain human negligence.
Everything that has some value in your life requires some sort of security. Your home as well as your car needs an alarm system, your personal belongings require insurance, your credit score also needs safeguarding. After all, not having a good rating directly affects the majority of your most prized possessions, including your family.