Benefits of Credit Reports and Credit Score Monitoring Services
Credit reports provides details of your individual credit history. This history includes personal identification information, a listing of credit accounts and loans, payment record on those accounts (particularly late payments), defaults, charge-offs, repossessions, and bankruptcies, and recent inquiries from third parties (such as potential lenders or insurers) about the credit report. Credit reports are compiled by specialized data aggregation companies called Credit Reporting Agencies or credit bureaus. The Big Three Credit Bureaus in the United States are Equifax, Experian, and TransUnion.The accuracy of your Equifax 3-in-1 Credit Monitoring is important because your credit history affects so many areas of your life. Planning to buy an auto or boat? How about a mortgage to buy your own home? Or maybe you just want to open a charge account or get a credit card. Lenders use your credit history to determine whether to give you the loan or account and how much interest you’ll pay. Potential employers often check credit reports before offering you a job and landlords before renting you an apartment. Most insurance companies now use an insurance score based on your credit history to help determine the rate you’ll pay for auto insurance, and some use it for homeowners insurance.
Checking your Equifax 3-in-1 Credit Monitoring regularly is important because your credit history plays such a big role in these areas of life, making sure that your report is accurate helps you manage your credit to accomplish your financial goals.
- First, every consumer should monitor his or her Equifax 3-in-1 Credit Monitoring to check for errors and false, misleading, or incomplete information. Various studies have found that as many as 75 percent of credit reports may have errors.
- Second, because identity thieves steal your personal information typically to steal your money, they often open accounts in your name or co-opt your accounts (run up charges and don’t pay) or they may do other things in your name that show up negatively on your credit record. Monitoring your Equifax 3-in-1 Credit Monitoring regularly won’t stop identity thieves, but it is one way to spot potential identity theft as quickly as possible so that you can take steps to stop it.
The Equifax 3-in-1 Credit Monitoring is not a deterrent to identity theft, but simply a potential early warning. In general, the service promise to check your report regularly for suspicious activity and alert you. This checking ranges from daily to quarterly. They also provide your FICO credit score again at stated intervals. You may be able to view your report online anytime, but the services again typically update the report only at stated intervals, which can be lengthy. Some offer “fraud resolution” services and fraud insurance though just what those include again varies.
Both the credit industry and consumer experts in privacy and personal finance agree that individuals need to monitor their credit reports regularly. Our conclusion is that each consumer must make an effort to check their credit report and score at least twice a year.