WHAT ARE MONTHLY CREDIT MONITORING SERVICES?

Identity theft is on the rise. In the U.S. alone, approximately 10 million people each year will become victims.Identity theft involves the use of your personal information to use your existing credit accounts or set up new accounts. Monitoring your credit report regularly is a good way to stop identity theft in its early stages, limiting the damage.Credit monitoring services review your credit history at one of the three major credit reporting agencies on a regular basis. They notify you of any changes in your report. While most monitoring services only look at one agency, some services will provide you with monitoring of all three agencies. The changes reported to you include everything from the change of your address to any new accounts opened. The service lets you know if someone else is using your personal information to obtain credit.In addition to reporting any changes in your credit, most services also provide you with quarterly or yearly copies of your absolutely free credit reports and credit score. This will help you keep up-to-date on where you stand as a borrower. Some monitoring service providers even provide you with identity-theft insurance to help with the costs of clearing up any identity theft related issues.All three major credit bureaus – Experian, Equifax and TransUnion – offer credit monitoring services. Credit card companies and lenders often offer these services as well. The coverage can range in cost from around $5.00 to over $80.00 each month.Early detection won’t prevent you from becoming a victim, but it can limit the damage to your finances and credit history. Services may contact you by email, text-message, postal mail or telephone regarding changes in your credit report.There are many benefits to having your credit history monitored. It is an easy way to stay informed of what is happening in your credit report. You may have little time to review your report personally. Having it done for you is one less thing you have to worry about. You will receive online instant credit reports – you don’t have to seek them out.If you are considering signing up for montholy credit monitoring services, you should ask the following questions:How soon will you notify me of credit card activity? You need to know about fraudulent activity as soon as possible, so make sure that it is only a matter of days. Reports that come only once a month or quarter aren’t as effective in stopping theft in its early stages. Do you provide assistance should I become a victim of identity theft? Services that will walk you through restoring your credit are often helpful. They can help save you time and make sure you don’t forget any vital details. Some services provide education, while others will contact all of your lenders and accounts for you.What does the identity theft insurance cover? Most plans cover lost wages, loan application fees due to rejection, reimbursement for long distance phone calls and other fees associated with clearing up your identity theft problems. They do not reimburse you for the money taken from accounts or charged in your name. Make sure you read the fine print carefully as to what is and isn’t covered. When you have your credit monitored by a service, keep in mind that it may be only monitoring one credit reporting agency. You will need to check the other two agencies periodically. There can be significant differences between your reports at each agency.Whether you turn to a credit monitoring service or monitor your account yourself, early detection is key to limiting the damage caused by identity theft. Carefully check account numbers, payment histories and inquiries for any fraudulent activity.

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