If you feel the need to monitor your credit score at all times, you have options. You must take the time to determine the best option before you give out your personal information or agree to join a program that requires a monthly subscription. Many services offer you the chance to monitor your credit score for a low price, but after doing some research you may come to realize that the best way to keep track of your credit scores is with the three major reporting agencies.
Reasons for Monitoring
Mistakes on your credit report can bring your credit score down, and this can cost you money. A lower credit score could mean a higher interest rate from borrowers when you are trying to finance a larger purchase, such as a house or a car, and a higher interest rate can mean hundreds or thousands of extra dollars added to the overall cost of your financing. By monitoring your credit you may be able to notice accounts being opened in your name that you did not authorize, and this may allow you to stop identity theft before it gets to an advanced stage. You can also make sure all of your personal information, such as past addresses, is correct so that anyone conducting a background check will be able to properly match the information you give them with the information on your credit report.
Free Reports
Federal law mandates that each of the three credit reporting agencies (Equifax, Experian, TransUnion) must supply you with a free credit report once every calendar year. This is a good way to start monitoring your credit as you can use this one free report every year to identify credit accounts opened in your name but not opened by you, check on your personal information to make sure it is correct and make sure all of your previous credit account information is correct. If you find something that is not correct, then use the dispute procedures outlined on the credit report to file a complaint.
Ongoing Monitoring
Mortgage News Daily warns us that some of the people offering credit monitoring services are collecting information to sell or to use on their own for identity theft. If you choose to monitor your credit report on an ongoing basis, then the best way to do this is to pay the monthly subscription rate to each of the three credit reporting agencies and monitor your reports directly through them. With all of the potential criminals using free credit monitoring as a lure for unsuspecting victims, it is safer to use the credit reporting agencies than rely on a third party.
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