Are Credit Monitoring Services Worth It? -

(MENAFN- Evertise Digital) According to the Federal Trade Commission, American consumers reported losing more than $12.5 billion to fraud in 2024, a 25% increase from 2023. One way to help prevent these scams is through credit monitoring . However, credit monitoring services are typically not free, and can present a financial burden. Here, we explore how credit monitoring works and when it might be worth it for you.

What is credit monitoring?

Credit monitoring is when you hire a service to monitor your credit report to check the information in your name and alert you of changes. Some of the items credit monitoring services check include:

• Credit accounts
• Credit inquiries
• Debts in collection
• Public records, like bankruptcies

Your credit report plays a central role in determining your credit score , which may impact your eligibility for loans, financing or even housing. As such, it's extremely important that your credit report is accurate and up to date. A credit monitoring service can alert you of new accounts opened in your name, information changes, large transactions, credit limit increases, and more important data that you want to know about.

Types of credit monitoring services

There are both free and paid credit monitoring services available. You can also check your credit yourself using tools like AnnualCreditReport. According to the Consumer Financial Protection Bureau, checking your own credit report does not have a negative impact on your credit score.

Free credit monitoring services may be offered as a perk of using a bank, credit card or other financial product. They may offer optional paid services to support boosting your credit or help protect your identity through dark web monitoring, hard inquiry monitoring, and other security features. Paid credit monitoring services typically include these additional services, as well as premium features like assistance in protecting and repairing your credit, or access to all three credit bureaus: Experian, Equifax, and TransUnion.

Benefits of a credit monitoring service

Whether you use a free or paid service, both typically provide the following benefits:

• Access to credit reports and scores
• Automated credit score changes tracking
• Address change discovery
• Potential fraud alerts
• New account detection
• Public records watch

In either case, the core benefit of any credit monitoring service is that it monitors your credit report for you proactively, so you don't have to regularly check to see if anything has changed. It's a more automated way to ensure your credit history is accurate and new information is correct.

How much does credit monitoring cost?

Free plans, of course, are free, although they may be included in the cost of paying for a financial product. Paid credit monitoring services can cost up to $360 per year for individual plans, or up to $500 for family plans. You can also opt to monitor your credit on your own by checking your report from time to time.

Is a credit monitoring service worth it?

So, how do you know if a credit monitoring service is worth it? Well, it really depends on your situation, but it may be worth it to you if:

• You've already been victimized by identity theft or are at high risk because you've lost your Social Security card or your Social Security number was exposed in a data breach.
• You don't expect to have the time or desire to monitor credit yourself.
• Credit monitoring is included in a financial product you already have.

If you're considering a credit monitoring service, always consider your budget and make sure you use one that specifically promises three-bureau credit monitoring to ensure complete coverage.

Active credit monitoring, whether through a service or on your own, can help you protect your credit score and ensure you're in a good position to apply for financing and meet your financial goals.

Contact Information:
Name: Sonakshi Murze
Email: [email protected]
Job Title: Manager

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