What Is Credit Monitoring and Why Might You Need It?

Around 16% of Americans have bad credit. Some of these individuals have poor credit scores from fraud, while others have low scores from mismanaging their finances. 

If you care about your credit, you might want to consider hiring a company that offers credit monitoring services. If you don't know what these are, you might want to learn. 

Here is a guide to help you learn more about credit monitoring services, including what they are and what benefits they offer. 

The Basics of a Credit Score

You'll find three main credit reporting agencies in this country. Each bureau uses formulas to determine your credit score, and each might have a different score for you.

Your credit score plays a significant role in your ability to rent apartments, get loans, and many other things. As a result, you should care about your credit. 

The problem is that many people don't understand credit scores. They don't understand their importance or the way that companies calculate them.

If you don't understand your score, you might not know why credit monitoring services are so important. Therefore, you might want to begin by learning some credit score basics

Credit reporting agencies calculate scores by factoring in several vital details about a person's finances. Some of the factors include the person's credit age, the amount they owe, payment history, and the number of inquiries.

Learning these factors is the start to understanding how your score works and ways to improve it. Understanding these things might also help you realize why your score is so important. 

The Principles of Credit Monitoring Services

Credit monitoring companies offer a vital service that many people utilize. The purpose of hiring a company like this is to have an expert watching your credit report for you. 

While you can sign up for free credit monitoring services, you might reap more benefits by hiring a company. When you hire a company, they take on an important role for you.

The main duty they assume is watching your credit report. When they see things appear that might not be correct, they will let you know.

In fact, most companies notify their customers when certain things happen, including the following:

  • A new account appears
  • A major increase in debt occurs
  • There is an address change
  • A late payment happens

Imagine having a company watching for these types of events and letting you know as soon as they occur. By having this service, you'll have the ability to protect your credit. 

The Benefits of These Services

Next, you should learn more about the benefits of hiring a credit monitoring company. Here are some of the benefits you can experience: 

They Spot Identity Theft Right Away

When you have credit monitoring services, the company providing the services notifies you immediately if they spot identity theft. 

In 2020, approximately 14.4 million people reported identity theft issues. While this is a lot of people, the number continues to fall yearly due to credit monitoring services. 

Dealing with identity theft is not a fun experience. As a result, it's always better to catch the problem right away, making solving it a lot easier. 

They Notify You of Suspicious Activity

When you hire a company to monitor your credit, they will alert you anytime they notice any type of suspicious activity. For example, they will alert you if a new car loan appears on your credit report. 

If you purchased a new car with a loan, the entry might be correct. If so, you can tell the company that you approved this loan. If it's a mistake, they will help you fix it right away. 

They Resolve Issues for You

Another benefit is the help they offer for resolving issues. If you've ever tried to fix a credit report issue yourself, you probably know what a hassle it can be. If you're tired of dealing with issues yourself, hire a company.

When you have credit monitoring services, they'll fix all the issues for you, leaving you with no work to do yourself. 

They Assist With Credit Repair 

The other benefit of credit monitoring services is that these companies also offer credit repair services. If you're one of the 16% of the population with bad credit, you might need some help fixing yours. 

You might need help fixing yours, even if it's not considered a bad credit score. If you're unhappy with your current score, the credit monitoring company might be able to help you increase it. 

They can do this by removing late payments and inaccurate postings. 

How to Find a Company to Hire 

Now that you understand the benefits of credit monitoring services, you might be ready to hire a company for credit risk monitoring services. How do you choose a company for this service, though? 

The best way is by comparing your options. When you compare your options, you can choose the best credit monitoring service, which means you'll receive the best services.

One thing to look for when hiring a company is its reputation. What do past and current clients say about this company and its services? You can read reviews to find out. 

Secondly, what services does the company offer? You'll want to find one that offers credit monitoring services and credit repair services. 

Finally, you can compare prices for the services. By comparing the prices, you can find a company that offers great services for competitive prices.  

Your Next Step: Hire a Company to Monitor Your Credit 

If you have a great credit score, you might want to protect it. If you have a poor credit score, you might want to hire a company to help you improve it and help you avoid further problems with it. 

If you really want to step up your game, check out the new eBook I wrote for you, the Credit Repair 101Simple instructions, and illustration will help you learn how to boost your Credit Score, and other amazing credit tips & tricks. Check out the samples on the product page.

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William Anthony is an Entrepreneur, Strategist, and Blogger. Back in 2015 when He checked his credit score, it was lower than 500. That's not even a passing grade! Since then He always wanted to know more about how credit works, and for the last 7 years, He has researched and tested all things about Credit Score, Credit Card, etc. And now, after succeeding in many cases in His Credit Score Journey, He wants to share all of his experiences with you guys. Hope that reading articles about Credit Score, Credit Cards, Credit Repair, etc. will become more clear for your own Credit Journey.

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