Credit News and Advice

Do You Need Credit Monitoring?

You’ve heard the scare tactics: Use a credit monitoring service or else fall victim to an identity theft, have your credit ruined, and lose your job. Is any of it really true? Do you actually need credit monitoring? Will credit monitoring actually protect you from ID theft?

The short answer to both questions? No, and no.

Few people need credit monitoring. It’s a convenience. Credit monitoring sends you regular updates on your credit score and report so you don’t have to remember to check them (or pay additional for each report). And that’s about it.

Credit monitoring is great for people who are actively trying to watch and improve their credit score, but don’t expect it to do things it can’t. Like protect you from identify theft. Credit monitoring notifies you as soon as anything changes on your credit report. For example, credit monitors would send you an alert if a new line of credit appeared on your account. If you didn’t apply for it—it could be ID theft.

The problem is, by the time it hits your credit report, it could be too late. Credit reports aren’t updated instantly, and by the time the credit card an ID thief applied for in your name appears in your report, he could have already charged $10k in your name that he never plans to repay.

Now, there are some services out there that don’t just provide credit monitoring but also identify theft insurance. These firms cost more, but will pay for damage to your credit report caused by ID theft.

Interested in learning more about credit monitoring? Compare credit monitoring services now.