6 Features To Look For In A Credit Monitoring Provider

Back in the day, if someone wanted to check their credit score, they had to go out and purchase a yearly subscription for a credit report from one of the three major bureaus. But now, for a fraction of the cost, you can get a service that’s constantly monitoring your account and sending you updates on how your finances are doing.

From a data breach to a lost wallet, there are all sorts of reasons why you might need to monitor your credit from time to time. In this article, we’re going to cover the features that you should be looking for in a credit monitoring service, as well as what type of monitoring is best for different circumstances.

Are you looking to find a credit monitoring provider? There are many reasons why someone might want to monitor their credit. If you’re trying to decide on a company, or maybe you’ve been using one for a little while but want to make sure it’s the best choice for your situation, this article will list six features to look for in a credit monitoring provider.

1. Do They Provide Credit Score Monitoring?

Does the service provide free 24/7 credit monitoring services? If so, are there any hidden fees involved, such as activation fees or monthly fees? Also, do they provide free copies of your 3-credit reports from each bureau every year (or at least once every four months)? Again, watch out for those hidden fees because they can add up. Your credit score is one of the most important factors in any financial transaction that you engage in.

If you don’t know your credit score, then how can you know if you’re getting a fair deal on a loan, or making sure that you are getting the highest interest rate possible? You want to ensure that the company provides you with free access to your credit report, FICO score, and two of your credit scores. The best services also provide alerts for key changes to your account that could lead to more fraud or identity theft.

2. Is There A Credit Limit To Your Coverage?

When looking for a credit monitoring company, consider whether it will cover your credit limit. Does the company monitor your credit reports and alert you before exceeding your credit limit? If so, this is an invaluable service that you won’t want to forego. The goal of a credit monitoring company is to keep you from going into debt because of identity theft or fraud. It’s important to understand the limits of any coverage you are purchasing.

Credit monitoring agencies are typically not able to protect you from identity theft that happens outside of your credit reports, nor can they help if someone steals your information using a different name. Some agencies offer coverage that includes protection in these circumstances, but this is typically a separate product and will require you to pay additional fees.

3. Does It Include Alerts For Compromised Accounts?

When someone steals your identity, they are likely to use your account to work with financial institutions. A monitoring service should send you text alerts when there is unusual activity on your accounts or if your identity gets compromised. You want a monitoring service that includes these alerts so that you can take action right away. In the future, it will also be possible for providers to have access to more information about your accounts and status changes from other companies, which will allow them to detect problems sooner.

4. What Type Of Coverage Does The Plan Provide?

A credit monitoring plan will let you know any changes to your credit score. If there are any changes, the plan will notify you of the company’s identity that made the change, what type of modification was made, and how it impacts your credit score.

According to a review on SFGate’s website, the best credit monitoring services encompass three main areas that include credit report monitoring, real-time data breach notifications on a wide range of identity threats, and identity theft insurance to help you recover from the damage. They’ll also help you start the process of recovering from identity theft if it happens to you. Some companies will also provide insurance coverage to reimburse you for expenses like lost wages and attorney fees.

5. How Often Are The Credit Scores Updated?

Monthly updates tend to be the most common and may be sufficient for many people. However, if you’re trying to track a significant change in your credit score, it might be helpful to have more frequent updates. Many people wonder why they should spend money on a credit monitoring service to just monitor their credit score themselves. However, this requires making a lot of inquiries to find out the score from all three major credit bureaus. Credit monitoring services provide all three scores for free and allow you to monitor them 24/7 so you never have to worry about forgetting to check your credit.

6. What Types Of Additional Features Does The Plan Offer?

Many credit monitoring providers offer similar services, but it’s smart to investigate the individual offerings of each company. For example, some providers offer free FICO scores, which are different from the scores used by lenders. Other companies provide alerts for specific accounts and watch for changes in your overall credit profile. Also, some credit monitoring services keep a record of your credit history and provide you with a copy at the end of your membership period. You should look for a plan that includes identity theft protection, malware scanning, and account alerts.