How Credit Monitoring Works – Don’t Have Your Life Stolen!

Steal your life? No, not physically, but financially. Did you know you can have your financial life stolen? They call this epidemic that’s sweeping the world identity theft. And yes, it can happen to you! That’s why it’s such a widespread and serious problem – most people don’t think it can happen to them, so they don’t protect themselves.

Ok, let’s slow down here a bit and start at the beginning. In discovering how credit monitoring works, we first need to examine why this system was created. We’re going to be talking about you here – we want you to seriously consider your position in relation to this problem and what you can do about it.

Why do we need credit monitoring?

Identity theft is the fastest growing crime in Canada and the United States. The numbers in the U.S. alone are staggering: in 2003, there were 9.9 million cases of identity theft – up 41% from the year before, and at a massive cost to the U.S. economy of $53 billion! Do you think there’s a need for protection here? Some kind of system had to be developed to fight this huge crime wave.

Along came credit monitoring. The logical creators of this system were the three major credit bureaus across North America – Equifax, Experian and TransUnion. The role of these credit bureaus is to provide pertinent information to anyone who’s interested in someone’s credit history. When inaccurate information was given out, they were held responsible. So they found themselves stuck right in the middle of this mess. And to get themselves out, they had to develop a system to prevent people from becoming victims of the crime of identity theft.

Identity theft creates havoc for the Credit Bureaus – not the mention the victims

Let’s take a quick look at the actual crime of identity theft. Firstly, it is a crime – the U.S. Congress made it a felony a few years ago. But it hasn’t had much effect on the thieves. Identity theft is very hard to track. There’s a wide range of methods these criminals use. They go from the bottom of the scale, purse-snatching, to the top of the scale, kingpin-style fraud rings.

Perhaps you’re not totally aware of what identity theft is. You’re not alone. In a survey conducted over the past 100 days, 79.9% of people questioned didn’t have credit monitoring. Most knew nothing about it. So exactly what is identity theft?

The definition of identity theft is a crime in which an imposter obtains key pieces of personal information, such as your Social Security Number (SSN) or Social Insurance Number (SIN), in order to impersonate someone else. It's most important you’re aware of how they do this so you can protect yourself.

Think of how much telecommunications and computers, especially the Internet, have opened up the world of personal information. Companies and consumers find it much easier to reach each other and, in the process, your personal information is sent all over the place. Criminals know this, and take advantage of its accessibility. That’s why there’s so much emphasis on security these days, especially on the Internet.

Any common computer hacker can access files on your computer, or the massive databases held by credit companies. Your name, date of birth, address, credit card, SSN/SIN and other personal identification numbers can be used to open credit card and bank accounts, redirect mail, establish cellular phone service, rent vehicles, equipment or accommodation, and even secure employment. Think of the drastic consequences this could have on your life!

What can you do to protect yourself against identity theft?

There are a number of ways to prevent identity theft. Take a close look and apply these to your own life:

First and foremost, be careful how your share your personal information.
If you’re giving out personal information, make sure you find out how it’s going to be used and who has access to it.
Protect your SSN/SIN; it’s the key to your identity, especially in credit reports and computer databases.
Never give out your credit card number on the phone, by email, or to a voice mailbox.
When giving out information on the Internet, use digital signatures, data encryption or “anonymizing” services.
Watch your billing cycles. If you don’t get a bill when you know it’s due, contact the creditor and find out if it’s been sent.
Notify creditors immediately if your ID or credit cards are lost or stolen.
Check your credit report every six months to a year for inaccuracies.
Use passwords, and make them irrelevant, that is, ones that thieves can’t figure out from your personal information. Change your passwords regularly and memorize them – don’t write them down.
Be careful what you throw in the garbage. Shred your bills, statements, receipts, etc. that have important information on them.

These are some of the ways you can fight identity theft. There’s another way, too.

Credit bureaus have a protection system in place

Credit bureaus have risen to the occasion – they’ve created a system called credit monitoring. Credit monitoring is a very reliable method of deterring identity theft. And a great side effect is it helps you to maintain your good credit.

Credit monitoring is a service you subscribe to, along with a fee (which is well worth it if you consider what’s at stake). Here’s what you get for your fee:

An immediate copy of your current credit report
Regular monitoring of your credit report, checking for suspicious activity like new accounts, address changes, late payments, etc.
Regular access to your credit report
A 30-day free trial
Weekly or monthly credit alerts via email, containing such information as credit inquiries, negative information, new accounts, public records, delinquencies, address changes, employment changes, etc.

The big three credit bureaus, Equifax, Experian, and TransUnion, each have their own credit monitoring service. There are few others available, too. Here’s a list of some of them and what they offer you when you sign up for their credit monitoring service:

FreeCreditProfile.com
They offer a free credit report and credit score. Their credit monitoring service is one of the most comprehensive with easy-to-understand analysis and convenient tools.
ConsumerInfo.com
They offer a free copy of Equifax Consumer Credit Report when you sign up for their Credit Check Monitoring Service.
CreditExpert.com
When you sign up for the Credit Manager premium service, you'll get unlimited access to your Experian credit report. A 3-Bureau Credit Report is also available.

Credit Monitoring protects your financial life. The information in your credit report can drastically affect your life – perhaps in a very negative way. Credit monitoring is your protection. Identity theft can kill you financially. Credit monitoring is your shield. Keep in touch with your free online credit report. Keep up-to-date with any changes in it. After all, they may not be initiated by you. And if they’re initiated by an identity thief, it may be months before you find out. And then it’ll be too late.

Don’t be a victim. Don’t have your credit ruined by a criminal. Protect yourself by subscribing to a credit monitoring service. And now that you know how credit monitoring works, you’ll be able to choose which service is best for you. Protect yourself and your credit – it could save your financial life!

About The Author

Gareth Marples is a successful freelance writer providing valuable tips and advice for consumers purchasing a credit scoring services, consumer credit counseling and the popular CashFlow 101 for Kids Board Game by Robert Kiyosaki. His numerous articles offer moneysaving tips and valuable insight on typically confusing topics.