How To Choose The Best Credit Monitoring Companies

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Following the Covid-19 pandemic, most of us are spending time online. This means that we are more vulnerable to online hacks and malware attacks. Consequently, hackers are having the time of their lives as they now have easy access to personal information, like social security numbers, bank details, addresses, and work history, which they maliciously use to take up credit, only to default and ruin your credit score.

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When the credit score plummets, it might take years to repair, especially if the discovery period is very long. With the three national credit agencies only compelled to offer credit reports once a year for free under the Federal Law, you should consider choosing the best credit monitoring company to track any changes in your credit score.

A credit score is based on payment history, total debt, credit history, new credit, and loans. Each factor is taken into account, depending on the issuing agency. Some bureaus request additional information such as rental and employment history to determine your creditworthiness. In the meantime, identity theft exposes your information to criminals, and credit monitoring can prevent fraud from resulting in an actual loss.

You should consider the following factors when choosing the best credit monitoring company: –

  1.   Flexibility Of Services

How many service packages does your credit card monitoring company offer?

How long do you intend to use their services?

A service provider offering the highest number of services is ideal for your needs, especially since financial situations are dynamic, and you may find yourself in need of a different service five years down the road. For example, ID Shield offers the following packages: –

  • Individual service with 1 agency ($12.95/mo.)
  • Individual service with 3 agencies ($17.95/mo.)
  • Family service with 1 agency ($25.95/mo.)
  • Family service with 1 agency ($32.95/mo.)

If you intend on starting a family in the future, it is something you should consider. Furthermore, you can select either the services of one or three credit bureaus, depending on your requirements.

In comparison, My Fico offers:

  • Basic ($19.95/mo.),
  • Advanced ($29.95/mo.), and
  • Premier ($39.95/mo.) with different scopes.

Additionally, if there is a free/trial option provided by some companies like Credit Karma and Credit Sesame, you might find that the services fit your requirements.

Nonetheless, free services are more for those who have low credit limits and frugal expenditure. The most that you can get is credit report monitoring and alerts in suspicious transactions.

  1.   Reimbursement Services

If your identity is stolen and is used to open a credit account, borrow money and then default on payment, repairing your score and convincing the lender that it was not you who borrowed can be an arduous task stretching for months. In the meantime, your FICO credit scores would have plummeted to irreparable levels, and it might take debt settlement and relief services to have you back on your feet if you do not have enough disposable income.

Hence, credit monitoring services should be backed up by an insurance cover and reimburse you in case of a loss. This service is particularly suitable if you have an online presence and therefore susceptible to a personal data breach.

In most credit monitoring companies, reimbursement services range from as low as $10,000 to $1,000,000.

Your service provider should offer benefits over and above what the insurance cover provides if there is a failure or delay in the expedition of a contractual duty.

  1.   Money-Back Guarantee

A Money-back guarantee is a service termination condition that gives you the right to recover your full or partial subscription if you are dissatisfied with the services within a specified time.

A cash return guarantee not only protects you from losing out in case there are substandard services, but it is also proof that the company is confident in its services and convinced that clients are unlikely to be dissatisfied. LifeLock is one of the best examples of companies that offer cash backs.

  1.   Debt Management Solutions

Credit monitoring can prevent fraud by alerting you if there is suspicious behavior happening on your account. However, a healthy credit score also depends on sound debt management practices.

Hence, a credit management company that offers additional services such as expenditure tracking, FICO credit score simulations and calculations, and personalized controls such as setting limits to daily spending should be top on your list.

  1.   Security

You should prioritize a credit monitoring application with a multi-factor authentication password, biometrics security, and other next-level security features.

Most importantly, you should do a background check of the companies before signing up or making any payments.

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How To Choose The Best Credit Monitoring Companies
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You should prioritize a credit monitoring application with a multi-factor authentication password, biometrics security, and other next-level security features.
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