Apply Now

How Does Credit Monitoring Work? Tips for Checking Your Score

Posted on

Credit scores and credit reports are regularly used by businesses to determine if you qualify for important services like loans, insurance, rental agreements, and offers of employment. As a result, it’s essential to make sure the information on your credit report is accurate. Credit monitoring is one way to ensure this goal is met.

How Does Credit Monitoring Work?

What does credit monitoring entail? Credit review services typically provide a fee-based service that monitors your credit report and sends you alerts when suspicious activity is registered or when there are changes to your credit score or report. The goal of credit monitoring is to detect criminal activity and errors so that you can take necessary action.

If unauthorized transactions or a sudden drop in your credit score indicate that you have been subject to identity theft, you can freeze your credit. This protects your credit score while you deal with the aftermath and prevents further illegal use of your information from occurring.

Credit monitoring is also useful in the event of data breaches. If you are made aware that your data has been compromised, you can put a fraud alert on your credit report or freeze your account while you explore other security measures.

In other cases, errors can be made on your credit report that affect your score and your chance of success in securing services such as loans and optimal interest rates. Errors could result from another individual’s credit information wrongly populating into your file, inaccurate reporting of a missed or late payment, or account information that is not current. Monitoring your credit report allows you to recognize potential errors and reach out to your credit reporting company to file a dispute so they can be cleared up.

Checking Your Credit Score

There are three main credit reporting agencies in the U.S.: TransUnion, Experian, and Equifax. According to federal law, you can request a free copy of your credit report from these credit bureaus once each year. Beyond this, these agencies offer paid credit monitoring services with more in-depth reporting services.

Stay on Top of Your Credit

Credit review services can be used to your advantage to keep your credit report in order. Credit monitoring alerts let you know when to take measures to reduce the potential negative impact of factors like identity theft and errors. Staying on top of your credit gives you the freedom to perform actions like applying for a lease, taking out a loan, or refinancing an existing loan.

Make the most of your credit and refinance your auto loan with Gravity Lending.