Credit monitoring is a type of service that alerts you whenever there are any changes made to one of your credit reports. It is very important to monitor your credit because if you not then it may cost you thousands.
When you have the good credit score then you have no problem in getting the loan and having good interest rates. Thus you can save up to thousands of dollars. However, the time to monitor your credit score is now, not a month before applying for a loan because it takes time to have a good credit score.
Well, many people have questions that how they monitor their credit score. There are some steps which can help you to monitor your credit score.
1. Start with a Free Credit Score and Credit Monitoring
There are few sites which provide you free credit score monitoring. Check them out. While free monitoring tools are great and offer some good benefits, they do have limitations. The main problem is that they do not provide in-depth services. It means that these free tools don’t track reports from every credit reporting bureau. For example, there is site who provides these services and use TransUnion credit reports for your score and monitoring. So, if another bureau picks up a suspicious activity that TransUnion doesn’t, then you will be not notified about that activity.
It doesn’t mean that these sites are not good but yes you should not totally rely on them for all your credit monitoring needs.
2. Review Your Credit Report
When you receive your credit report then you need to verify whether information in the report is correct or not. You might find incorrect information about yourself such as addresses, phone numbers, etc. or any account that you don’t recognize. If you find any inaccuracy or error in the report then check for the instructions on how to inform this information to the credit bureau.
3.Protection Of Personal Information Online and Offline
It is important to take measures against would-be identity thieves who can sabotage your credit score, finances, and the sensitive information. For example, if you have the same password for all the logins then you need to change because it can be hacked easily. Use anti-virus software and being cautious about what you share online. Watch out for scam phone calls or texts asking for personal information. Protecting your identity offline is just as important as protecting it online.
4. Review Your Accounts Regularly
If you are not the one who check or review your accounts regularly then you need to change your way. It is necessary to check on the regular basis as if there is any error or misstatement in your credit card account then they can immediately rectify it by informing them. You can also set weekly reminders so that you wouldn’t forget. Not checking your accounts can lead to losses and complications in future.
5. See If You Have Credit Monitoring Perks
Some people don’t know that they may already have some form of free, basic credit monitoring. For example, mint.com, AAA membership etc includes free credit monitoring service for members. Also, many credit card companies such as Chase, offer free FICO credit scores for cardholders. So, if you have any monitoring perks then why not to take benefit of it. So check whether you have any perks or not.
6. Stay Informed and Continue to Monitor Your Credit
Monitoring credit is not really enjoyable but can be rewarding to you. If you are finding any difficulty in managing or remembering to check your accounts and information then you can set reminders or take help to make your work easier.
Monitoring your credit score and reports is as simple as staying informed and watching your credit score. If you are checking your credits scores and reports on the regular basis then you can get the good credit score. As all errors and activities are in your control. To improve your score you can refer the below link.
You may also refer: good credit score
Other Ways to Monitor Your Credit
In addition to using a credit monitoring service, you can do on your own. According to law, each of the three major credit reporting bureaus is required to provide a copy of your credit report every 12 months. Go through yours now so you can easily spot any suspicious activity moving forward.
You can also consider freezing your credit. Basically, it means that no one except you would able to open the credit account in your name. It is a most aggressive step which you can take to protect your credit.
Freezing and “unthawing” your credit costs some money and can be a bit of pain to you. Freezing your credit account may involve many steps and laws which you need to consider.