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It determines whether you might borrow money and how much you pay when you do.
Monitoring your score can help you fight fraud, correct errors and better manage your accounts.
But youre probably wondering what is credit monitoring?
Its a service that provides updates about your credit, and there are various types.
Heres everything you better know about credit monitoring and how to decide if you need it.
What Is Credit Monitoring?
Credit monitoring companies track changes to your credit report and provide alerts when something new appears.
The service provides information about your score but doesnt improve or change it.
Quick Tip
Still confused?
Think of credit monitoring as grades on essays or tests in school.
How Does Credit Monitoring Work?
Paid credit monitoring might include more features like identity theft protection and dark web monitoring.
Some services might only check one or two credit bureaus, but the more robust options check all three.
The company sends an alert by email, app or text once something changes with your score.
If nothing changes, you get an alert that states things are the same.
The biggest perk of credit monitoring is that it informs you about errors and fraud.
For example, lets say you get an alert about a new line of credit.
Heres what you’re able to expect when you sign up for the service.
Good To Know
Experts often compare credit monitoring to a security camera.
It informs you about whats happening but doesnt fix the problem.
You have to fix it yourself.
Why Is Credit Monitoring Important?
Credit monitoring is crucial because it helps you act fast.
you gotta know about issues so you candispute credit errors.
Here are some of the biggest perks of credit monitoring:
Free vs.
Paid Credit Monitoring
you’re free to choose between free or paid credit monitoring services.
The best option depends on what you need.
Heres how to decide which one makes the most sense.
Who Should Use Credit Monitoring?
Credit monitoring is also essential if yourebuilding credit, repairing your score, or recovering from identity theft.
Before signing up with a company, ensure it offers the following features.
Did You Know?
Your bank, credit card or credit union might offer free credit monitoring.
Check with your financial institutions before paying for coverage.
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