Why You Should Monitor
Your Credit
With identity theft on the rise, it’s more important than ever to monitor your
credit. Why does credit monitoring help? Because identity theft doesn’t
always happen in an obvious way, such as having your purse or wallet stolen, people
usually don’t know it has happened until it is too late. According to Federal Reserve
Bank of Boston statistics, four out of five victims had no idea how the thieves
accessed their information. Chances are you’ll never see it coming. That’s why it’s
important to monitor your credit history and credit score.
Stay one step ahead of the thieves
Thieves have a variety of methods for obtaining access to your personal information.
They can steal mail from your home or office that contains account numbers and personal
information. They can extract personal information right from your computer using
viruses designed just for that purpose. You might even turn over information unwittingly
in a “pretexting” scam, which takes place when a thief contacts you pretending to
be to what you think is a trusted source — such as a bank or even a credit reporting
agency — through the mail, over the telephone or by e-mail. If you
provide information in response to the thief’s request to "verify" your
data, you’ve just given your identity away.
Shockingly, identity theft victims often find their information was stolen by someone
they know. The thief could be a roommate, a bookkeeper, cleaning service or maintenance
person you hired to do work for you or even your landlord — anyone who has access
to your home and records. Identity theft within families is also more common than
you would like to think.
Continually monitor your credit reports
The best method for protecting your credit is to get professional help that will
allow you to continually monitor your credit through the major credit reporting
agencies. Each credit reporting agency offers slightly different information, so
you need to monitor all of them. Some experts suggest getting a credit report from
each agency once a year. Unfortunately, this allows too much time for thieves to
do their dirty work and damage your credit. Credit monitoring services get reporting
from all three major credit reporting agencies regularly. This helps to ensure no
one is posing as you and opening new accounts or using your existing accounts. With
continual credit monitoring, you can take action right away if inaccuracies or suspicious
activity appear on your report.
In recent years credit monitors
have done a lot to stop thieves in their tracks. Credit monitoring services require
a subscription, but they protect you in many ways in exchange for their fee. Services
vary slightly but most of them monitor each credit reporting agency and alert you
daily when new accounts are created; if there are credit inquiries; or if there
are changes to your address of record, public records or current accounts. Having
access to this nearly real-time information from each credit reporting agency can
make a world of difference when it comes to stopping thieves before they ruin your
credit and possibly your financial future.