The Significance Of Credit Monitoring And How To Do It

Have you ever wondered why credit monitoring is so important, Before you even begin understanding the significance of monitoring your credit, you must see the importance first of having a good credit history. Your credit history is a record that banks, lending institutions and credit card companies use to evaluate if you are a qualified candidate to receive loans. This is one way for them to check your viability and to prove that you are worth their investment.

Most companies run a check on your credit report because they want to see your potential as a client. They can calculate the risks involved in lending you money for mortgaging a property, buying a car or simply issuing you a credit card account. Your credit report will be able to tell them the history of your debts, whether you pay on time and how many accounts or existing loans you currently have. There are some instances wherein there are discrepancies in your credit report.

That is actually one of the reasons why credit monitoring is necessary. It is very important to regularly check your credit report because there might be some false information written on your report that will greatly affect future opportunities for acquiring loans. It is also necessary to check your credit report once in a while so you can make sure that no one else is using your name to open accounts or to get a loan.

Monitoring your credit will definitely a big help in protecting yourself against identity theft which is quite rampant these days. There have been many reported cases of identity theft and people who keep a close eye on their credit history are able to defeat these thieves. If you have a credit monitoring service, this will also raise an alarm if anyone would try to open an account using your personal information.

You can monitor your credit in different ways. One of the ways to obtain your credit report is through the three credit reporting bureaus: Experian, Equifax and TransUnion. You can also check your credit card company or local bank if they offer credit monitoring services that will allow you to check your credit history at the same time see your credit score.

This may require a little investment of money on your part, but it will certainly be for your own good. Credit services that monitor your credit activities will not only help you check your scores or keep track of your accounts. If you check your credit report and see some discrepancies in these reports, these services will be able to help you to dispute the errors and false entries.

This will also protect you against identity theft and other schemes that might put your credit reputation in jeopardy. Now that you have seen how important it is to monitor your credit and how you can actually do it, you now have the capacity to keep your guard and watch closely your credit activities. Try the different ways for credit monitoring and find out a service that will help you monitor, safeguard and check your credit report and credit scores.

Have you ever wondered what information is on your credit report, You should. Your credit report defines your entire reported credit history and is a major determining factor in your future credit worthiness. You may want to consider monitoring your credit report at least once a year, if not once a quarter, to make sure it's accurate and up to date. Take the necessary steps to report any errors you find immediately: Mistakes and omissions still affect your credit score!

Another reason to check your credit report is to safeguard against identity theft. The Federal Trade Commission (FTC) estimates that 9 million Americans have their identity stolen each year. Your credit report will show if someone has opened a credit card account in your name. Not only will the new account be listed, but also the amount owed or delinquent on the account. If you suspect you've been the victim of identity theft, you'll need to place a fraud alert on your credit report, close those accounts, as well as file a police report and a complaint with the FTC.

The Fair Credit Reporting Act guarantees you a free credit report once a year, by law, from each of the three national reporting agencies, or credit bureaus: Equifax, Experian, and TransUnion. Your credit score and report may vary by agency, depending on the information it has received from lenders. It's important to note that only your credit report is free.

You can purchase your credit score directly from the credit bureaus or from FICO (formerly known as Fair Isaac Corporation), the company that created the first credit score system. 40 for scores and reports from all three. Some credit card issuers offer customers free FICO score reports. Keep in mind that there is a difference between a credit report, which is often free, and your credit score, which you may have to pay for.

You can also use a monitoring service to monitor your credit reports daily. Many people find this type of service useful and worth the price because they're immediately tipped off about any fraudulent activity. Whether you're checking your credit report or score quarterly or annually, or having it monitored for you more frequently, only use an agency authorized to provide credit reports. Credit inquiries by unauthorized agencies may lower your credit score in the short term.

Identity protection is becoming more and more necessary these days. We live in what is called the 'information age'. Paper records are being replaced by electronic ones. If you were born in the last eighty to one hundred years, chances are your address and social security number is in electronic format in a database somewhere.

Whether your information is on file at a bank, retail outlet, government agency, or personal computer, it is out there somewhere. What we need to realize is that these electronic files containing our personal information (whether encrypted or not) are always at risk of being altered, compromised, or stolen. If thieves get access to your personal information, they can do serious damage to your credit report and seriously impact your FICO score.