Credit Monitoring

Credit monitoring is the process of assessing your credit reports from time to time to check for accuracy and changes indicating suspicious activity. Credit monitoring works on the grounds that your credit report must be protected from any identity theft.

Credit monitoring is the process of assessing your credit reports from time to time to check for accuracy and changes indicating suspicious activity. Credit monitoring works on the grounds that your credit report must be protected from any identity theft.

If the hype and headlines are to be believed, identity theft is a huge issue and you can’t simply avoid monitoring your credit. It is therefore significant that you have access to a service that monitors any fraudulent activity on your credit 24/7 by constantly screening thousands of databases for abuse of your identity.

There are many credit monitoring services out in the market that can cost you thousands. These automated services alert you by sending notifications to you in case any fraudulent activity is observed so that you can take quick action. However, with minimum conscientiousness, you can monitor your own credit without even spending a penny!

Let’s start by checking on a few more details on how credit monitoring works.

How Credit Monitoring Works

Most individuals rely on self-monitoring to check their credit scores and keep track of it, in case they need to apply for mortgages or loans. Here’s how credit monitoring system works:

  • It monitors all the databases to fill you in on any changes to your credit report

  • It alerts you if there is any misuse of your credit report

  • It will tip you off about a new credit application in your name along with any creditor’s response to your identity used by someone

  • It provides you with an ease of control of your credit account and its monitoring

Factors considered for Credit Monitoring

Credit monitoring services constantly monitor. any fraudulent changes in your credit report.

  • Your name change

  • New address

  • New account information

  • New information on demographics

  • New delinquencies

You receive notifications, generally, in the form of text messages or emails if any suspicious activity is observed. You can then resort to reporting the fraudulent activity and freezing your account for the time being.

There is a common notion that monitoring your CIBIL score regularly will have a negative impact on your credit report. However, nothing can be further from the truth! Self-monitoring your credit report is called a ‘soft inquiry’, meaning, it will be visible only on your personal credit report. On the other hand, when you apply for a loan and your lender checks your credit report, it appears on your credit report as ‘hard inquiry’ since it represents a new loan. For instance, a Financial Health Check Report on Finserv MARKETS makes use of soft inquiry every time you check your credit score. Hence, your credit monitoring does not affect your CIBIL score and is in fact considered as good credit management.

Benefits of Credit Monitoring

Good credit history is the most important parameter for calculation of your credit score. Credit monitoring helps you keep up with your credit score and helps in monitoring your identity theft. Here are some other benefits of credit monitoring:

  1. Prevention in Identity Theft: Managing your finances is important, as anything you do reflects on your credit report. However, the individual stealing your identity would pay no heed to that since it would not make any difference to them. If you do not pay close attention, such discrepancies may even go unnoticed. The longer the fraud, the worse your CIBIL report will get. If you suffer from identity theft, it might take more than 50 hours for you to get your account back to track. Rather than going through all these hassles, you can simply resort to credit monitoring.

  2. Customized Alerts: Credit monitoring furnishes comprehensive services where you will get regular personalized alerts on activities like delinquency, credit inquiries, credit history, and so on. Here, you can customize the alerts you receive. For instance, you can opt to get notifications for every fraudulent activity or detail on the best rates of home loans.

  3. Advanced Planning of Finances: Things can get difficult if you do not plan your finances in advance. It is one of the most significant reasons for your lower credit score. Credit monitoring also alerts you if your credit score changes, and thus helps you maintain a healthy financial profile.

Any unauthorized expenses and activities can negatively impact your credit report and your CIBIL score. To avoid being a victim of credit fraud, credit monitoring can assist you big time! If you do not wish to opt for a credit monitoring service, there are ways you can check your CIBIL score and credit profile for free! The Financial Health Check Report available on Finserv MARKETS is one of them. The FHCR will not only provide your credit score by screening through various factors like your credit history and creditworthiness, but also provides recommendations to maintain a financially healthy profile. So, get your Financial Health Check Report on Finserv MARKETS today!

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