It's true that some companies can monitor one's credit. Other types offer a lot more. There are those that keep an eye on sites used by identity thieves in trading stolen information. Certain types specialize in tracking data that go through chat rooms and public databases.
When you hire credit monitors, they perform regular credit checks that can positively affect your scores. The checking ensures that there are no alterations that could give negative information in your credit report.
However, even in its diversified forms, credit monitoring should not be relied on alone. Self credit monitoring could enhance the efficiency of the monitors. You can do this by regularly checking your credit card and bank statements every month.
Need-To-Know Information About Credit Monitoring
You should know facts about credit monitoring so that you could choose the right one for you. Here are some of the important details that you should know about credit protection:
1. ID theft is targeted by credit monitoring
A new account fraud occurs when the thief makes use of your information to open accounts for credit cards or mobile phones. This type of fraud is not that easy to detect because the culprit diverts the bills to another address. You'll only discover this type of fraud if you get rejected for a new account or if a debt collector starts calling you. Credit monitoring cannot stop the thief from opening new accounts in your name, but it does allow you to know about the fraudulent act in a short period of time.
2. Identity theft types that aren't covered by credit monitors
Here are some types of identity theft or fraud that cannot be helped by credit monitoring:
- Check card or debit fraud— This happens when your check or debit card is used by the thief in acquiring money from your account. The thief could easily access your money because a PIN is not required when an off-line transaction is used.
- Account fraud (existing)— This type of fraud happens when the thief makes use of your current accounts in committing fraud. Another name for this is "Account Takeover Fraud". You could know about this if you always check your monthly statements.
- Criminal ID theft — This fraud happens when the thief gives your information during an arrest. You will then have a criminal record without even knowing it.
- SSN fraud— Here, your social security number is used in the thief's tax reporting or employment.
- Medical ID theft— This is when an identity theft victim's name and information are used to claim medical services or goods. There are usually wrong entries in the existing records. The worst case is when a medical record is fictitiously created in the victim's name.
If any of these scenarios happen, then you might be at risk for id theft. If so, consider credit monitoring. You could also opt for fraud alerts for your credit reports. If you're a victim of data breach, you could have free credit monitoring for a year or so. The point is: Make sure that you're well aware of the credit protection that you want before you acquire one.