Do You Really Need Monitoring Credit Report?
Author: Hector
Do You Really Need Monitoring Credit Report?
If you live in America, you are probably familiar with the Credit Report. Have you seen that commercial with the guy that sings draw on credit woes or you have been caught advertising on radio, a credit monitoring service reports become very common. The real question is, why you are interested in having the company monitor your credit history? Could not you do yourself?
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This is where it pays to understand the difference between getting a free annual credit report and have your credit record continuously monitored. Everyone is entitled to one free credit report annually from each of the three credit bureaus (Equifax, Experian and TransUnion). You can get your free credit report at Annual Credit Report. What you need to know is that this is a credit report and do not include your credit score. It’s also just a snapshot in time of your credit history. Just because your credit report clean at this time does not mean it will be next month.
Your credit score is a numerical indication of the quality of your credit history. Scores are based on algorithms (and secret) are complex and usually ranges between 300 and 850. Credit scores are created by each of the three credit bureaus, and by several other companies, so you can have more than one credit score. However, the credit score the most universally recognized created by Fair Isaac, the company that produces FICO scores. The higher the credit score, reduce your credit risk to lenders and more likely you are to get a loan. The bottom line is that knowing your credit score is a good thing and your free annual credit report does not include this information.
If you want to know how your credit score, you need to buy. You can go through the process of doing this, but then again this is only your credit score on a particular day. If your credit score 720 this week, it could be 690 next week / month / year. It all depends on what happens with your credit information.
The only real way to constantly and consistently stay on top of your credit report and credit score to apply for credit report monitoring. Remember to choose the services best credit report you can find. You should ensure you get the “three bureau” credit monitoring. “Three bureau” refers to the three credit bureaus: Equifax, and TransUnion. You need to monitor all three bureaus because of a change to your credit report is usually only occurs in one bureau.
Although you will have to pay a monthly fee for credit report monitoring service, it’s much cheaper than buying your credit report from each credit bureau 3 per day and try to monitor your credit record yourself. In addition, credit monitoring report will benefit you in two ways.
Save Money. Stay on top of and aware of your credit history can save you thousands. The company uses your credit history and credit score to decide whether they will lend money. Your credit history is also used to determine the interest rate you will get your loan or credit card. If your credit score high (ie, more than 760) you will receive a better interest rate than if your credit score is low (ie, 630). Someone with a lower credit score can literally pay $ 50,000 – $ 100,000 over a 30-year mortgage than someone with a high credit score. That’s real money!
Identity Theft Prevention. Subscribe to a credit report monitoring service will help you stay on top of any suspicious activity involving your credit history. The first sign of Identity Theft is usually a change to your credit report, credit investigations are often prompted by a thief trying to open an account on your behalf. Your credit history will be constantly monitored and you will be notified when changes occur. These companies are better off going one step beyond this and even monitor public records and internet for any use of your personal information (SSN, credit cards, etc.) or fraud. This means that if something related to your credit history or personal information that happens, you will find in real time and can quickly move to resolve the issue.