8 Reasons Why Credit Monitoring Services are the Best Thing since Sliced Bread
By Kevin Mercadante
Credit monitoring services are one of the best services to come along in decades. It’s available to everyone, and it can help you to keep your credit profile in top shape, and give you advanced notice of credit related problems.
Even the best credit monitoring service won’t protect you from every potential disaster, but it will enable you to ask least prevent some problems, and minimize the whole lot more.
Here are eight reasons why credit monitoring services are the best thing since sliced bread.
1. You Can Know What Your Credit Scores Are at All Times
This may be more of a convenience than anything else, but credit monitoring services give you the ability to know what your score scores are at all times. It will help when you are searching out new loan opportunities, or even having casual conversations with your friends when the topic comes up. A lot of people have no idea what their credit score is - you won’t be one of them!
2. You Can Correct Errors on Your Credit Report
Credit reports often contain errors. Credit score monitoring will be the only way that you will know when one occurs. You will also know specifically what it is, and then you can fix it. That is always best done when the error is very recent, and the facts surrounding it are fresh on your mind. You can get it removed from your credit report before it has a chance to do too much damage.
3. You Can Take Steps Necessary to Improve Your Credit Scores
Depending on where your credit scores are at, you may want to work on improving them. Credit monitoring services will give you the ability to see how well your efforts in that direction are working. For example, credit monitoring will enable you to see the results of reducing a credit card balance. You should be able to see an improvement in your credit score in as little as 30 days. This will help you to know that you’re heading in the right direction.
4. You Can Short-circuit Identity Theft
Even the best credit monitoring service will be unlikely to prevent identity theft, but knowing that it’s happening – at the time it’s taking place – can be an opportunity to minimize the damage.
For example, if you’re credit report gives an indication that you may be the victim of identity theft, you can freeze your credit lines, and put a statement on your credit report indicating the existence of theft. That will prevent a thief from gaining access to your credit lines, and also from applying for new credit in your name.
5. You Can Investigate Major Changes in Your Credit Scores
Credit monitoring services typically notify you when there is a significant change in your credit score. When that happens, it will put you on notice that something significant has happened to your credit report. That will give you the ability to investigate and address whatever the problem is immediately. And since the services will generally provide you with the reason why your score has changed, there won’t be any guesswork.
6. You’ll be Ready When You Apply for a Loan
It can take weeks or even months to fix a credit problem. Continuous credit score monitoring will enable you to do exactly that before you need to apply for credit. That means that your credit report and your credit scores will always be credit-ready. Since you will always be on top of your credit, there will be no need for last-minute maneuvers, particularly those that are brought about by last-minute surprises.
7. You’ll be Ready When You Apply for a Job or a Life Insurance Policy
Lenders aren’t the only institutions that are interested in your credit. Today, employers and life insurance companies commonly pull your credit. It will be to your advantage to monitor your credit, and keep it in top shape in the event that you need to apply for a job on short notice. A sudden layoff could make such a move necessary in a short timeframe.
8. You Can Prevent Disaster - Rather Than Just Reacting
Credit monitoring services enable you to stay on top of your credit, and prevent disasters before they occur. The kinds of disasters we’re talking about are when you apply for a loan, a job, or an insurance policy, only to be turned down because of negative information on your credit report.
Think of them as an essential part of your overall disaster preparedness plan.
About Kevin Mercadante
Kevin Mercadante is a freelance professional personal finance blogger, and the owner of his own personal finance blog, OutOfYourRut.com. He has extensive backgrounds in both accounting and the mortgage industry. Follow Kevin on Google+.