Since the dawn of credit fraud, credit protection has been seen as a necessity for credit card holders. Credit fraud and identity theft are the fastest growing crimes these days. Protection from such fraudulent activities should be of the highest priority especially since most everything related to money these days is dependent on your credit.
Your financial credibility is the number one priority when talking about credit monitoring. Many people believe in hiring credit protection services while others do not. There are a lot of things to consider if you want to avail of this extra service.
Having another agency monitor your credit has its advantages and disadvantages. It isn’t a small thing if you become a victim of identity theft or credit card fraud. It may result to years of financial troubles and wasted time and effort in trying to clear up your name.
With all the things that you have to do every single day, maybe you should consider having your credit monitored. But before you make a decision, you have to understand the pros and cons of credit monitoring first.
Pros of Credit Monitoring
Learning how credit monitoring helps consumers would be a good start. Here are some of the advantages of having a credit monitoring service on your side:
- Your credit is constantly monitored
A credit monitoring service always keeps an eye on your credit. They track your credit reports in all three credit bureaus but some only take care of one or two. They send you a letter, an SMS message or an email if there is any unusual activity in your account. - Reimbursement
If you become a victim of credit fraud, the credit monitoring agency you hire will reimburse you for any expenses incurred while clearing up your account and name. This includes long distance calls or special deliveries you had to make to set things right after the ID theft happened.
In addition to credit monitors, the CFPB (Consumer Financial Protection Bureau) was also established in July 2011. According to Debt.org, “The bureau then launched its Consumer Complaint Database in June 2012, allowing the public to access information on submitted complaints. The database includes all basic information about a complaint, as well as any action taken and how the involved company responded. The CFPB also maintains a confidential hotline for whistleblowers who wish to report suspected violations of federal consumer financial laws by the companies they work for, have business with, or compete against.”
Cons of Credit Monitoring
Credit monitoring is certainly beneficial when it comes to notifying you about any unauthorized tampering of your account. But the companies that offer this type of ID theft cannot assure you that they could protect you against every single type of fraud or identity theft. If someone is able to avail of a job using your name, you won’t be alerted by the credit monitoring service at all.
Another issue is the monthly payment of 10 to 15 USD monthly to maintain the credit protection services. The 120 to 180 USD a year could be a lot for some consumers.
Another disadvantage is that if an identity thief is able to establish a new account under your name, the entirely new file created will not immediately be credited to your account so you would not be alerted at all.
Getting a credit monitoring service to help you maintain good credit is considered a smart move these days. It may not be able to fully prevent identity theft or fraud, but every bit of protection is worth it to avoid being a victim.
Amy is an active blogger who is fond of sharing interesting finance related articles to encourage people to manage and protect their finances. She also covers topics on credit monitoring and credit protection that can help people prevent themselves from identity theft & credit fraud.
