A credit monitoring service is one that monitors credit card accounts for abnormal activity and delivers an alert to the card holder if such activities occur.  There is normally an annual or monthly fee for the service, which is billed directly to the primary card user that is signed up for the service.

This service is more valuable and essential given the ever-increasing concern about identity theft. Some consumers choose to monitor their credit reports and personal information independent of a professional service in order to save money while others choose to rely on a service to deal with the task of credit report monitoring.

A credit monitoring service will keep tabs on your credit report, maintain a record of changes, and deliver activity reports to the consumer. For example, a service sends an alert if someone tries to get credit in their customer’s name.  Some monitoring services provide you with additional copies of your credit report or assist with resolving issues found on your report. Here are some things you may want to consider when choosing a credit monitoring service:

·         A service that tracks credit with all three major consumer reporting companies (TransUnion, Equifax and Experian). Not all three companies collect the same information about consumers. It is best to monitor all three reports.

·         A service that will send immediate alert notifications as opposed to sending them on a monthly basis or more. It is also important to be able to choose how you are notified. The most popular and convenient option is by e-mail. However, if you do not check your e-mail account often, it may be best to choose another delivery method.

·         Understand what services you will receive based on the fee paid. Find out if the service includes assistance in clearing up credit reporting errors and issues associated with the credit reports. Does the service cover any expenses in the case of identity theft?

If you decide to hire a credit monitoring service, as opposed to tracking your own credit reporting, choose one that obeys the law. A credit monitoring company is obligated to provide a written contract that lists your rights and obligations, along with an explanation of total costs involved in the service.  They should provide a detailed description of what will be performed on your behalf. Any guarantees they profess must be made known in the contract, as well as the full company name and address.

Do not choose a credit monitoring service that charges upfront before the service has been completed. Avoid those companies who instruct you to contact the credit report companies yourself, because that it what you should be paying for them to do.

It is not a difficult task to monitor your own credit report but with today’s hectic lifestyle and schedules it is good to know there are credit monitoring services available. It is just one more item that you do not need to add to your to-do list, on a monthly basis. The service is well worth the money spent.