What is Credit Monitoring?

Credit monitoring is the process of tracking a consumer’s credit files. A credit file consists of the data a credit report agency collects about you and how you have used your credit. Including your personal information such as full name, address and social security number. With this data being held, consumers are able to be informed of irregular behaviour or changes regarding this data. Considering this, credit monitoring is primarily used to guard against identity fraud.

Credit monitoring is used track and spot changes in behaviour, in order to notify consumers of potential fraud, noticing any suspicious activity or changes concerning one's credit history, prevention of identity theft. Criminal activity like this can range from illegal purchases at retail or online, using a stolen credit card number to filing fake Medicare or Social Security claims.

The types of activity that may trigger a credit-monitoring service to notify you about can include; credit reports of any new accounts opening under your identity for credit cards or loans, address changes associated with credit cards or loans listed in your name, credit reports including details on your payment history and highest balance on credit cards.

Many consumers with a lower credit score find credit monitoring particularly helpful in order to work towards improving their score. Some services actually create personalised reports that recommend ways for individuals to improve their credit score. 

Here are three main reasons why credit monitoring may be beneficial; to build your credit score. If you are just starting to try to build your credit or trying to rebuild after an instance such as bankruptcy, then credit monitoring will be useful for you. To be incontrol of your credit 24/7, 365. If you are using a lot of credit and want to keep your score as high as possible at all times, credit monitoring is the best way in order to maintain this. Or if you are worried about identity theft. Whether you have already been a victim or are just concerned that your information may have been compromised, then credit monitoring can too be used for identity theft protection.