Credit score monitoring can prepare you against identity theft and information that is inaccurately reported. Credit score monitoring can help in tracking your credit report on a regular basis and can warn you of any important changes.
Many consumers use the facility of credit score monitoring as a method to prevent identity theft as the credit score monitoring service will inform them every time a new account gets opened in their name. Credit score monitoring can also help you to track errors on your credit report. It will inform a consumer of delinquency reports from a creditor.
How can Credit Score Monitoring help you rebuild your Credit Score?
Credit score monitoring is possible as you are entitled to refer to your credit report annually as per the federal law. By paying additional fees, you can refer to your credit score as many times as you feel like. You will be able to get credit if you keep track of your score and get alerted to problems like identity theft.
If you know how the credit rating system works, you will be able to benefit from credit score monitoring. If you have bankruptcy or court debts’ details on your file, it will damage your credit report to a considerable extent. Such entries will expire only after the period of a decade. It will be difficult to obtain even the sub-prime credit cards during this phase that are necessary to rebuild the credit rating. It is advisable to use the credit score monitoring service to keep a check and help rebuild your credit score.
How to plan and implement Credit Score Monitoring?
You will need to plan well before you implement credit score monitoring to allow for steady improvement of your credit score. The first step in this plan is to settle all existing bills before their due dates. This will create positive information on repayment. When you take advantage of credit score monitoring, you will find that the age of the accounts is a crucial factor in the calculations which are used in the overall rating. This can take you further as you will be able to access new credit lines. It is better to use credit cards to pay up than take out loans. You will be able to build up an even better repayment profile without paying high interest rates.
What are some of the good Credit Score Monitoring Providers?
The credit score models are provided by FICO (Fair Isaac Corporation). All other models collectively are known as FAKO. Your selection of credit score monitoring services will depend on your preference in getting a correct picture of your credit worthiness. You can use a blend of various services. If you want FICO scores, you can get authentic information from Fair Isaac at ‘myfico.com’. They have a credit score monitoring service known as `Score Watch’. It only offers monitoring for Equifax. The service costs $8.95 every month. You can save maybe ten to twenty per cent through discount codes.
If you want a general guidance for your credit scores, you can try the free service `creditkarma.com’ or `quizzle.com’. CreditKarma offers a score based on your TransUnion credit report whereas Quizzle offers a score based on your report from Experian. These credit score monitoring services do all the legwork for their clients.