Credit report monitoring involves utilizing a service that lets you track what is happening with your credit. You can see how your report is changing and how your credit score is changing. This helps to motivate you financially, allows you to protect your identity and offers several advantages. Some of the top advantages of credit report monitoring include the following.
Credit Report Monitoring Helps You Understand Your Finances
Anytime you apply for credit or take on debt, this information is reported on your credit report. By taking a look at your credit report, therefore, you can get a snapshot of all of the money you owe and all of the credit available to you. If you’ve borrowed to buy a house, taken on credit card debt or have other loans, you’ll see them all in one place. You’ll also discover how much you can still borrow on your credit cards. By seeing a snapshot of your total financial picture supplied by your credit report, you will be able to find out where you stand financially and what your outstanding responsibilities are.
Credit Report Monitoring Will Help you Catch Errors
Credit card companies and banks aren’t perfect and sometimes they make errors. Sometimes, they may report that a payment was made late when it wasn’t or they might provide an incorrect loan balance. Sometimes, creditors can even mistake you for another person and will put information on your credit report that doesn’t apply to you. Credit monitoring permits you to see these errors so that you can then contact the credit reporting agencies and correct them.
Credit Report Monitoring Will Help You Spot Identity Theft
Identity theft is among the biggest financial issues that people can face mainly because it can do so much harm to their credit through no fault of their own. When your identity is stolen, someone can use your personal data in order to apply for credit cards and other loans or take advantage of services. The thief then is not going to pay for the debt they’ve taken on and you may find a record of maxed out credit cards, bills that haven’t been paid and judgments against you when credit card companies sue you for nonpayment. All of these things can completely destroy your credit score and will leave you with ruined credit. Even though you can get the data removed and undo the damage that's been done, this process isn’t easy and it may take a lot of time. Credit report monitoring helps you catch the ID theft early so that you can stop the thief before a lot of damage is done.
If you are interested in credit report monitoring, you can use a service such as IDENTITY GUARD® to help you keep tabs on your credit.