Are Credit Monitoring Services For Me?

Are Credit Monitoring Services For Me?

Consumers who seek ways to improve credit scores may be offered a vast amount of products and services as they search online. These services may allow them to obtain their credit report, their credit scores, assist them in finding ways to improve credit scores and also help them keep regular track of their credit. Credit monitoring services are one of the many choices available. Consumers who are considering credit monitoring services may need to ask themselves a few questions as they further educate themselves on this tool.

What Are Credit Monitoring Services?

Credit monitoring services regularly analyze your credit and may provide you updates when a change has occurred. There are several different credit monitoring services currently available, some good and some not-so-good, each with different features offered. Be sure to review the features and terms of a credit monitoring service before signing up for a program.

How Could Credit Monitoring Services Help Me?

Ask yourself this question, how often do I check my credit? Most consumers would probably strive to check it once per year, but the reality is that most consumers probably check it a lot less often than that. Credit is generally out of sight and out of mind unless there is a problem or if a big purchase is anticipated. But wouldnt you want to know if there is a problem on your credit report that can be corrected well before you consider buying a home, a car or anything else like that? Credit monitoring services are on watch and may alert you of an issue.

Catching an issue on your credit report early may save you time by not having to address it down the road when you are trying to make a big purchase. Whether it is a payment that you forgot to send, inaccurate information reported by a creditor or a compromise of personal identification information, credit monitoring services can help you keep regular track of your credit situation.

Can Credit Monitoring Services Save Me Money?

Weve already demonstrated that credit monitoring services may save you time, but can they save you money? Negative information that is reported on your credit report may lower your credit scores. Credit scores have become the main driver by creditors in determining who receives credit and what interest rates are charged. As a result, seeking and implementing ways to improve credit scores may save you money. Credit monitoring may show you whether your efforts are succeeding and, as a result, give you information that may help you decide if further efforts are necessary. Lets demonstrate with the following example:

A consumer with good credit scores borrows $200,000.00 to purchase a home. She receives an offer to borrow at 5.0% interest rate for a 30-year fixed rate loan. Her total payments of principal and interest over the life of the loan would be $386,510.40.

Another consumer with marginal credit scores borrows the same amount for a home purchase but receives an offer of a 5.5% interest rate for a 30-year fixed rate loan. He is not eligible for the lowest rates based on his lower credit scores and his total principal and interest payments are $408,808.80 for the life of the loan. This represents a difference of $22,298.40 in additional payments that may have been avoided! I dont know anyone who would be willing to spend that much money so needlessly. Had he utilized ways to improve credit scores and kept on top of his progress with diligent credit monitoring in an effort to see if more credit improvement efforts were necessary, he may have saved himself some money.

The convenience of using credit monitoring services to regularly monitor credit may provide peace of mind knowing that credit issues may be detected early and you may be able to address them quickly. Those who are interested in how credit monitoring services can assist them may want to take advantage of the low-cost or free trial offers that are currently available. Always remember to review the features and terms of a credit monitoring service before signing up for a program.