5 Reasons Why You Need Credit Monitoring

We generally make money when you get a product (like a credit card or loan) through our platform, but we don’t let that cloud our editorial opinions. Learn more about how we keep this compensation from affecting our editorial views.

5 Reasons Why You Need Credit Monitoring

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. If you're a Credit Karma member, you can get free credit monitoring of your TransUnion and Equifax credit reports, meaning we'll alert you after significant changes are made.

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.

About the Author: A published author and professional speaker, David Weedmark has advised businesses and governments on technology, media and marketing for more than 20 years. He has taught computer science at Algonquin College, has started three successful businesses and has written hundreds of articles for newspapers and magazines throughout Canada and the United States.

Editorial Note: The opinions you read here come from our editorial team. While compensation may affect which companies we write about and products we review, our marketing partners don't review, approve or endorse our editorial content. Our content is accurate (to the best of our knowledge) when we initially post it, but we don't guarantee the accuracy or completeness of the information provided. You can visit the company's website to get complete details about a product. See an error in an article? Use this form to report it to our editorial team. For questions about your Credit Karma account, please submit a help request to our support team.

Advertiser Disclosure: We think it's important for you to understand how we make money. It's pretty simple, actually. The offers for financial products you see on our platform come from companies who pay us. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials.

Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates.

Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.

Comment on this Article

Write your comment:
Enter Your Comments