Should you pay for Credit Monitoring Services?

Credit monitoring services charge a few dollars each month to keep track of any changes or suspicious activities on your credit file. If you have ever been a victim of identity theft or credit fraud, then you are aware of how important it is to be aware of these activities as soon as possible so that the appropriate measures for damage control can be taken. This would include freezing the infiltrated account/s, filing disputes, and initiating corrections so that your credit score can be restored to its original rating. In this article, we discuss what exactly is included under credit monitoring services, its potential value, purpose, as well as its pros and cons. We also discuss available alternatives as well.

Considering how easy it is nowadays to steal your identity, the danger of criminals using yours to commit various methods of fraud is always present. For example, all that is required to establish a line of credit in your name is your full name, your social security number (SSN), your birth date, and your account number. All of this info can be easily retrieved just be stealing your wallet, or going through your mail. And if you happen to be a member of any social media sites (as most people are), even the supposedly secure questions such as your mother’s maiden name or the name of your favourite pet can be quite easily discovered.

This is where credit monitoring services come in. For a small monthly subscription, a monitoring service would keep track of your credit file and records. They would be on the lookout for suspicious activity such as someone establishing a new account under your name, applied for new credit, or run up outstanding and uncharacteristic balances on your credit cards. Obviously, being aware of these activities will allow you to file necessary disputes at the earliest opportunity, preventing much harm to your credit standing. Some services even sell insurance against charges incurred on your accounts due to identity theft.

There are also added services that you can avail of, such as free updates on your credit score. This often helps to motivate you to manage your finances efficiently.

The only disadvantage of paying for credit monitoring is that you do have to spend a few dollars each month. If you would rather not spring for it, then the alternative is to just avail of free credit reports from each of the three major credit reporting bureaus: TransUnion, Experian, and Equifax. You can request a report from each of these agencies every four months. This frequency may not allow you to take the necessary action early enough, but it should at least help you keep track of where you stand on your financial reputation.

This informative article is provided by WhatCreditMonitoring.