Understanding Credit Monitoring Services

A 2006 survey conducted by the Federal Trade commission found that about 3.7 % of US adults were victimized by identity theft in 2005. Credit monitoring services provide consumers ongoing monitoring and access to their credit reports--useful for detecting identity fraud or errors. How do credit monitoring services work?

Credit Monitoring: What it Provides

If you suspect that you're vulnerable to identity theft (You've lost your wallet, had a home robbery, or someone's hacked into your bank account), enrolling in a credit monitoring service can help you detect unauthorized activity on your accounts. Typically, these services charge a monthly membership fee and provide the following benefits:

• Notification of suspicious or irregular account activity
• Unlimited access to credit reporting by one or more of the three major consumer reporting agencies
• Access to your credit scores
• Identification of those requesting information or reviewing information contained in your credit reports

Credit monitoring can be helpful in preventing identity theft, and assists in identifying and correcting errors on your credit reports that can negatively impact credit scoring. If you have bad credit, periodically reviewing your credit reports scores can assist with managing debt and improving your credit.

Managing Debt and Comparing Costs

It's important to know that you are legally entitled to receive one free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) each year. These free credit reports do not include your credit scores, but you can order your free annual credit reports and buy your credit scores here. Each credit score costs about the same as a typical monthly membership fee for joining a credit monitoring service. If you're not worried about identity theft or other issues concerning your credit, reviewing your credit reports once a year may be enough. Here's what to look for:

• Check the addresses and employers as shown on your credit reports. Errors may not always signify identity theft, but should be corrected.
• Match credit accounts to your records to verify account holders, balances, and payment amounts.
• If you're working on improving your credit, check your credit scores a few times a year to make sure you're making progress.

Whether you use a credit monitoring service or do it yourself, being proactive can help prevent bad credit.

Source:
FTC Releases Survey of Identity Theft in US

About the Author:
Karen Lawson started writing stories about birds and surfing at an early age. For more than ten years, she enjoyed a productive corporate career in mortgage banking before moving to Reno, Nevada in 1997. Karen earned BA and MA degrees in English (specializing in writing) at the University of Nevada. Significant areas of research and writing include truth and ethics in creative nonfiction, medical humanities, and the symbolism and lore of birds in American literature and culture. Karen has taught English at a community college, is writing a collection of poetry, and enjoys birdwatching and walking her basset hounds.