What is Credit Score Monitoring and Why Do You Need It?

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It’s most people’s dream to achieve an excellent credit rating. However, statistics show that more than 16% of American citizens possess a poor FICO credit score. Lenders use this score to determine the credit-worthiness of potential clients. Apart from improving your chances of acquiring a variety of loans, having a good credit rating endears you to potential employers and allows you to access government services with ease.

There are several things that could negatively affect your credit score. These include:

  • Late loan repayments
  • Defaulting on your mortgage and utility bills
  • Maxing out your credit card balance
  • Co-signing credit applications
  • Consolidating your debt balances to a single card

Failing to monitor your credit can have severe fiscal repercussions, especially if you want to land your dream job or apply for a personal loan. That’s where credit score monitoring firms come in. These companies offer the best services to track your credit score, prevent identity theft, plan your finances and more.

Credit Score Monitoring: A Succinct Definition

You might be wondering: what exactly is credit score monitoring? Well, it’s the process of tracking your credit reports with the three major credit bureaus namely TransUnion, Equifax and Experian with a view to disputing any negative items that could be hurting your credit score.

Monitoring your individual credit is a laborious process that takes up a lot of time. Fortunately, there are plenty of professional credit score monitoring companies that can help you manage this complex task. These firms provide an assortment of services at affordable rates. Apart from protecting your identity and credit card information from fraud attempts, these platforms offer dark web monitoring services, ID theft insurance, credit score repairs, online protection and more.

Why Do You Need Credit Score Monitoring?

Your particular credit score reveals a lot about your financial health. Here are four excellent reasons why you need to monitor this critical pecuniary marker:

  • To Challenge Negative Entries on Your Credit Report

Hiring a revered credit score monitoring company will help you receive daily, weekly and monthly credit reports from the major credit bureaus. The firm will also scrutinize your credit history and dispute any negative item that appears on your report. If you’re interested in boosting your FICO credit score, engaging the services of such professionals is an excellent way to achieve this. However, it’s important to choose a package that includes all the services you need, including three-bureau credit monitoring and identity theft insurance. The more features your plan has, the costlier it will be.

  • To Protect Your Identity

Cases of identity theft have been gradually increasing over the past decades. Hackers and online impostors use a variety of brute force techniques such as phishing and malware attacks to infiltrate corporate systems and steal sensitive information. Credit card fraud is the most popular type of identity theft we have today. Luckily, most credit score monitoring platforms provide identity theft insurance to protect you from the damaging effects of ID theft should it happen to you. Better yet, your online presence is safeguarded to give you ample peace of mind whenever you’re using the internet.

  • To Insure You From Credit Card Fraud

The benefits of having a credit card are too many to count. Apart from facilitating cashless transactions, credit cards are safer and more convenient than physical bills. However, digital fraudsters are constantly coming up with ingenious ways to commit credit card fraud. Some may use advanced skimming techniques to hack your personal details while others will simply steal credit cards from unsuspecting individuals. Whatever the case, hiring a distinguished credit score monitoring service will insure you from such fraudulent activities and eliminate the worry associated with credit card fraud.

  • To Receive Alerts on Suspicious Bank Transactions

Another reason why you should consider subscribing to a good credit tracking platform is the prompt notifications you receive whenever someone tries to hack your bank account. Once a scammer gains access to your bank details, he will try to infiltrate your account and drain it. Getting rapid alerts can certainly help you know whenever dubious transactions occur. With this information, you can swiftly call your bank and express your concerns so that your account can be temporarily suspended.

Conclusion

Credit card monitoring services play an important role in improving clients’ credit scores, protecting their online privacy and insuring them from identity theft. The features they provide are quite relevant in the current digital economy. However, it’s important to figure out your needs and compare different companies before making up your mind.