It is essential to keep up with your credit activities, and that is why credit monitoring is important. One of the benefits of using a credit monitoring service such as TransUnion, Experian, LifeLock and Identity Guard is to guard your credit against identity thefts. Credit monitoring enables people to access their credit report which comes with your credit history and allows you to know where your scores stand.
A good credit score is 700 and above, and it gives you a good standing with lenders such as banks. Therefore, applying for a monitoring service can help you either maintain your scores or improve them. Credit monitoring service also assists in conflict resolution and debt analysis. If you want to save up on cost, you can check credit report for free.
How to Analyse Your Credit Report
Many people spend tons of money paying for credit monitoring service. Individuals can part with $60 to $180 every year. However, reports show that these services may not be as efficient as people might think. Free credit monitoring is not an impossible thing. It just requires time and dedication. You can take it upon yourself to review your bank statement and credit cards.Credit bureaus are open to offering free fraud alerts if you ask them. However, this alert should have a 90 days renewal. Check credit report for free and look at any errors in the information provided. Monitoring your report will also help you work on improving your scores. You can protect your credit from identity theft by freezing your account temporary to avoid having new accounts opened in your name.
Reasons for Poor Scores in Credit
• Not paying your credit bills is bad for your credit.
• Delayed payments can be dangerous for your credit score.
• Your credit performance can be affected by filing bankruptcy.
• If your account receives a charge-off, it will take a hit on your scores.
• Having a foreclosure on your home will lower your scores.
Fixing your Scores Using Your Credit Card
If your credit report is indicating that your scores are in the danger zone, then you should probably start working on them. The good news is that you can use your credit card to boost your score. The first thing you need to do is to ensure that you pay back your debts in time. Your FICO score is made up of 35 percent of your payment history. Ensure that your spending equals your financial position.A lot of people spend beyond their means which affects their scores negatively. Also, ensure that your credit card is always active. An active account will provide a predictability that lenders find more trustworthy.
Debt Analysis and Dispute Resolution
Debt analysis is the difference in your monthly income and amount spent in maintaining your debt. Many lenders prefer to lend money to individuals with a low debt to income ratio because they are more reliable than those with a higher debt to income ratio.Dispute resolution, however, arises when a cardholder launches a complaint when their card is used without their authorization. If you find yourself in such a situation, ensure that you report the issue within 24 hours.
Discover How Lenders Analyze your Credit
• They go through your credit history.
• They check your credit inquiries.
• You scores is a very big determiner when it comes to lenders.
• Lenders will always look into your related accounts.
Having poor scores on your credit is limiting when it comes to the application for loans. Therefore, it is vital to keep up with your credit report. Being up to date on such matters will help you avoid any pending disasters. If the credit monitoring cost is too high for you, you can always do your free credit monitoring as stated above. Keep in mind that there is no 100 percent guaranteed method to keep you safe from identity theft.