The Importance of Credit Monitoring
It's no secret why you need credit monitoring.
It's the same reason you need good credit – to protect your financial well-being.
"Protect" can be a general term. More specifically, you need to protect your financial identity to keep the good credit you've worked so hard to achieve. After all, having good credit helps to insure that you benefit from life's financial amenities– a new home, a new car – or even a college education.
The stronger (and safer) your credit, the better deals you'll get on all of the above. And to make sure you're getting the most bang from your financial buck,
choose a credit monitoring service that not only gives you peace of mind when it comes to identity theft, but also provides credit score monitoring to track your credit score.
A 2010 study from Javelin Research shows how vital it is for consumers to protect their financial data. The study found that:
- Over 11 million Americans suffered from an identity theft in 2009.
- The average out-of-pocket cost (per individual) was $373.00.
- The average time to resolve the fraud issue was 21 hours.
- Overall, identity theft costs the U.S. economy $54 billion
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It's not just individuals who benefit from identity theft protection – businesses could use it, too.
A recent study from PGP Corporation and the Poneman Institute shows that data security breaches in the United States shows that total per-incident costs are substantial. According to the study, "The average total per-incident costs in 2009 were $6.75 million, comprised of an average cost of $204 per customer with a jeopardized record. Breaches included within the survey varied from 5,000 records to more than 101,000 records from 15 different industry sectors. The most expensive data breach within the gambit of the study cost almost a whopping $31 million dollars to resolve."
Why else would you need a credit monitoring service? Let's take a look at some more key reasons consumers opt for credit monitoring services:
- Complete credit reporting data from all three bureaus – Consumers who opt for credit monitoring typically receive data from all three of the major credit reporting bureaus – all in one report. If your monitoring service doesn't offer all three credit reports, find one that does. You want a complete profile.
- Credit report monitoring – Any activity on your credit reports, like a lender inquiry, can affect your credit score. A good credit monitoring service can keep you posted on all activity related to your credit report.
- More in-depth reporting – If you go for the "do it yourself" credit monitoring service, you're a one-man (or woman) band. A credit monitoring service can act as an extra set of eyes, thus reducing the chances of you "missing" something.
- An instant "scoreboard" – With a credit monitoring service, you can get instant updates on your credit report, including current credit scores, and improvements and adjustments on moves you've made to improve your credit score.
However, the biggest benefit to using a credit monitoring service can be summed up in three words – "peace of mind." And that's something that doesn't have a price tag, but does offer the benefits of more sleepful nights knowing that your financial identity protection service has you covered.