Lenders use your credit score to determine your “credit worthiness.” This score impacts interest rate charges you are quote based on your risk to the lender.
The US government provides for its citizens to get a free annual credit report. This is a good idea for anyone and you can learn more here.
The first thing you want to do is make sure the entries are accurate. If not, review the government’s website on how to fix any inaccuracies.
Next, review your score and determine if it’s good (700 and above) or not-so-good (below 700).
If you have a poor score and it’s caused by inaccurate entries from identity theft, it could cost you hundreds, thousands or hundreds of thousands of dollars in extra interest payments.
It makes sense to contract with a service that monitors the three major credit reporting agencies. They are:
- Equifax
- TransUnion
- Experian
These agencies provide services to monitor your credit to protect against and minimize the impact of identity theft. Some of the services they provide include:
- Unlimited access to your credit report to check it anytime.
- Notice if your score goes up, down or changes to a different risk level.
- Monetary guarantee (e.g. $50,000) and access to fraud resolution experts in case your identity is stolen.
These services range between $10-$25 per month, but considering the piece of mind and financial savings, they can be well worth it.
A simple Google search for “credit monitoring” or “free credit report” or “identity theft” will result in thousands of possible providers.
You may want to start with your free report provided by the government (in the US) and then do some more research on the best options from there.
Final Note: Conduct your own due diligence and know what you’d get with each service. And it’s always a good idea to read their “terms of use” and “privacy policies.”
