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Types of Credit Monitoring Services
As its name suggests, a credit monitoring service provides around-the-clock surveillance of your credit report and alerts you to any suspicious activity via email and/or mobile phone. Whenever a new account is opened in your name or changes to your personal or financial information are made, the updates go on your credit report. Credit report monitoring keeps track of credit report activity as a means of curbing identity theft. Although credit monitoring services are considered a reactive response to identity theft, they allow consumers to be proactive in detecting and stopping fraudulent activity faster than consumers without the service.
Credit Monitoring Service Types
Credit monitoring is a form of credit risk management. The services provided by credit monitoring companies are aimed at reducing the risk of fraudulent actions to your credit report. There are two different types of credit monitoring services:
One-bureau credit monitoring in which the credit monitoring service monitors only one of the three nationwide consumer credit reporting companies.
Three-in-one bureau credit monitoring in which the credit monitoring service monitors all three credit bureaus.
Although Equifax, Experian and TransUnion are the only consumer credit reporting companies in the U.S., each operates independently of the other so your personal and financial information may differ between the three. As such, credit monitoring services that monitor all three consumer credit reporting agencies may be more beneficial in catching any inaccuracies, missing information, or fraudulent activity.
Cost of Credit Monitoring Services
Credit monitoring companies typically charge a monthly fee for their services, however some offer a one payment yearly rate discount. Prices among credit monitoring companies vary depending on the extent of the services offered. Expect to pay anywhere from $4.95 a month to $22.95 a month. The difference in price is based on these factors:
1. Number of Credit Bureaus Monitored. This could range from one to three. Generally, the least expensive credit monitoring service monitors only one credit bureau.
2. Monitoring Frequency. Some credit monitoring services scan your credit reports daily, while others scan weekly.
3. Notification Frequency. Some credit monitoring services notify you daily, within 24 hours of activity on your credit report, or at weekly intervals.
4. Alert Types. While some credit monitoring services alert you for any type of activity, some only send alerts for certain changes, such as new accounts opened, change of address, or new public records.
5. Number of Credit Reports You Can Access. Although credit monitoring services monitor changes to your credit reports, some limit the number of credit reports you can view.
6. Additional Benefits. Several credit monitoring services include debt analysis, credit scores, fraud alerts and identity theft insurance coverage as part of their service.