Credit plays a bigger role in your life than you may realize. From which credit cards you're approved for to how much interest you pay on your auto loan, even getting that dream apartment could depend on your credit.
So what if someone else got a hold of your info and your credit took a dive? It happens more often than you might think. If you haven't considered credit monitoring before, read on for five reasons why it probably makes sense for you.
Spot Identity Theft Early
About 8.6 million American households are victims of identity theft each year, according to a 2010 study by the Bureau of Justice Statistics. The sooner you're aware, the sooner you can take action. With a free credit monitoring service, like the one from Credit Karma, you could be alerted after someone attempts to open a new account in your name.
Uncover Errors in Your Credit Reports
Everyone makes mistakes - even credit bureaus. A 2013 study by the Federal Trade Commission discovered that one in four consumers found at least one error in their reports that might affect their scores. Five percent of these mistakes were significant enough that they could affect interest rates on a loan. All it takes is a single keystroke error to put a stain on your otherwise sterling credit history. But you'll only be able to dispute it if you know about it.
Stay on Top of Big Changes
While we usually associate credit monitoring with identity theft, it can also keep you up to date on legit changes to your report. Say you cosigned a loan for a family member and they miss a payment. You could receive an alert for that. Big changes aren't always bad changes, either. Maybe a late payment fell off your credit report and your score went up. That's good news worth getting!
Know Who Is Looking at Your Report
A free credit monitoring service can alert you whenever someone requests a copy of your credit report. These requests are often legitimate. Maybe you requested a credit limit increase or want to set up cable service. But if anyone unfamiliar is looking at your credit report, you might want to know about it.
Sleep Better At Night
No one can do everything themselves. Credit Karma's free credit monitoring service keeps a daily eye on your credit report so you don't have to. Although credit monitoring is just one aspect of protection, it can help you rest easier just knowing someone will keep you informed.
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