How can credit monitoring help rebuild credit?

Filed in Credit Monitoring, Credit Reports, Personal Finance by on September 20, 2013 0 Comments

If you have previously gone bankrupt and are in the process of getting your credit score back up, you can really help your efforts by regularly monitoring your credit. Using that service allows you to get regular progress reports on how your credit looks. Any good Canadian credit monitoring service (also referred to as Credit Alert or Credit Watch) will send you updated reports on a very regular basis. Most of the better ones provide online 24/7 access to your files.

Getting your credit score back up after bankruptcy is definitely a challenge. It can take months of time and attention to detail before you start to see results. One of the biggest tasks is making sure that no errors creep into your credit reports, and that fraudsters don’t destroy your hard work. Even the tiniest of mistakes on your report can ruin month of hard work in rebuilding your credit.

You can decide to monitor your credit on your own, but it is often better to go with a professional Canadian credit monitoring service when you are trying to rebuild your credit score after a bankruptcy. The word ‘Canadian’ is emphasized because there are literally hundreds of companies offering services but really only cater to residents of other countries such as States or UK. If you are unsure if credit alert services are right for you, consider obtaining a free Canadian Credit Report and see what it has to offer.

Here are some reasons why it’s a good idea:

1. Credit monitoring services watch for any and all inquiries made on your report and will supply you with a detailed review of why the inquiry was made. This will alert you to any type of activity that is either suspicious or unauthorized.

2. Credit monitoring services also look for new accounts opened up in your name. Identity thieves will often steal your personal information, such as your Social Insurance number and address, which they will then use to make a number of purchases that will pile up a mountain of debt in your name. When payments aren’t made on this debt, the delinquencies will be added to your report, further hurting your credit score. Keeping a close eye on your reports can prevent this from happening. Canadian Monitoring services will provide you with regular accurate updates to help you remain vigilant.

3. Credit monitoring services will also be on the lookout for address changes. Identity thieves will often give a different address so that the bills they accumulate in your name will never be seen by you. If you don’t get those statements and bills in the mail, it will take a whole lot longer for you to realize that your identity has been stolen. A credit monitoring service will ensure address changes don’t go unnoticed.

4. Credit monitoring services will alert you to increases on your credit card limit. One of the first things identity thieves do with stolen credit cards is request a limit increase so that they can then go and run up charges. Before you know it, your debt had risen and your credit score has dropped.

5. Credit monitoring services give your access to your information online 24/7. This can save precious time, which can be further saved if you opt to have alerts delivered to your e-mail inbox any time a change is made to your credit report. This allows you to ensure that all of your information is accurate, and that no suspicious activity is taking place. These small steps can help keep your credit score high and healthy.

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About the Author ()

Pat Drummond is the author of Credit Reports Canada and considered by many to be one of the leading experts on productivity and simplicity in relation to financial planning. He started this online credit score & reporting site to chronicle and share what he’s learned in over 20 years of counseling families and individuals on debt management, obtaining loans and improving credit scores.

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