Credit Monitoring Service 101

Earlier this year, with the click of the mouse, I became a victim of identity theft. I simply logged on to Bank of America’s web site, opened a new account, transferred $100 from an existing account, and ordered a box of checks. Then I waited patiently for my introductory information to arrive in the mail. One week went by and then two. Finally, I called the bank and learned that the checks were sent to an old address. To make matters worse charges had been incurred against my opening deposit from a cellular phone company. Fortunately, unlike many other victims, it only took me a few phone calls and a police report to clear up the problem. Nevertheless, this opened my eyes and sparked my interest in credit monitoring services. This article covers the benefits, costs and companies offering this type of service.

The best advantage of subscribing to a credit monitoring service is that you are alerted on a weekly basis via e-mail, snail mail, or text message when any major changes affect your credit. This includes credit inquiries, establishment of new accounts, or address changes. This instant alert service allows you to detect errors fairly quickly as opposed to waiting until an application for credit has been denied. You also get, depending on the level of service you purchase, unlimited access to your credit score and report. Other perks include regular tips and information on how to improve your credit. Some services also provide identity theft insurance up to $25,000.

There are two levels of credit monitoring. The first is single bureau monitoring, which means you only receive information on your credit report from one of the three major bureaus. The second option is three-bureau monitoring which provides you with access to your report from all three bureaus. The latter is the better option because there is no guarantee that personal account information is reported consistently to all three bureaus. In fact it is not uncommon to have some information show up one bureau’s report and not the other.