August 26, 2015

Credit Monitoring Alerts to Theft and Errors Save Time & Money

The Facts

Consumer credit research indicates that the average American with damaged credit and scores below 600, spends an additional $3000.00 each year to borrow money through loans or credit accounts. The time it takes for consumers to repair credit after identity thieves have opened fraudulent accounts is approximately 165 hours. While credit monitoring can’t prevent bad things from happening, it can alert you to inaccurate credit reporting and identity theft, saving you precious time and money.

Credit Report Inaccuracies

Recent studies indicate that more than 70% of all credit bureau reports contain at least some type of error or inaccuracy. Of these errors, some may affect the consumer’s ability to obtain credit. Many consumers spend endless hours disputing erroneous information on credit reports since credit report agencies and lenders are flooded with requests to investigate credit report mistakes every day.

Many consumers call credit bureau phone numbers only to find the numbers have been changed, or the hold time is too long. Because of this, American consumers choose credit monitoring now more than ever before.

Identity Theft

Identity theft affects everyone. In fact, last year alone more than 12 million consumers across the nation fell victim to identity based crimes. College students and children with no credit history at all became new ideal targets for those looking to open accounts under fraudulent personal information such as Social Security numbers and birthdates.

In this country and around the world, there is an increasing demand for personal identifying information that can be used to open new credit accounts by thieves or be sold to third parties for use. Although the federal government continues to take steps to combat the theft of personal information for consumers,, identity protection is needed now more than ever.

Challenges Credit Monitoring Services Face Monitoring Services Remain Vigilant

Every three seconds a personal identity is stolen. As good as credit monitoring has become,credit monitoring services continue to develop new strategies and systems to stay one step ahead of identity thieves. Without an identity monitor,there are a myriad of ways for thieves to steal consumer personal identifying information and account information.

These range from physically looking through consumer trash to swiping information through sophisticated phone apps. Consumer monitoring services of the three credit bureaus are continually adjusting services and offering new credit watch products to detect newly discovered breeches in security of consumer personal information.

Fragmented Files

Identity thieves know that consumers have become savvier, and credit monitoring services are on to them. Some try to avoid early detection by using partial identities to open credit accounts. This can create difficulties for consumers since a completely new file may be created by the 3 credit bureaus that wouldn’t necessarily become part of their main file immediately.

Because of this, mainstream credit monitoring could miss a credit alert to consumers reporting identity theft. Fortunately however monitoring credit does work most of the time, to notify consumers when their personal information has been compromised in some way.

Types of Identity Theft Difficult To Detect

While monitoring credit alerts consumers to nearly every type of identity theft, there are a few circumstances where monitoring can be difficult. Some identity thieves use your personal information to purchase cell phones or obtain employment. For situations such as these, where a credit check is not necessarily done, early detection is often difficult. Finding the best credit monitoring service to help protect your identity and track credit accounts is important regardless.

The cost of bad credit is high. Whether credit is damaged through credit reporting inaccuracies or identity theft, most consumers simply don’t have the time to track daily changes in their credit profile and credit scores. Disputing erroneous credit items and working with lenders and credit bureaus to fight identity theft can be daunting. Monitoring credit detects activity in your credit profile so you can alert lenders before your credit gets damaged further.