Why Credit Monitoring is Important?

Filed in Credit Monitoring by on September 10, 2013 0 Comments

If you want to keep your financial well-being in good standing, Canadian online credit monitoring is essential. By frequently checking your credit, or having a monitoring service do it, you add a new layer of protection to your credit. Having a good credit in Canada means improving the chances of being able to buy a home, shop for a new car or furniture, or even get a job, so why take the risk of not checking?

The digital age now means that more of your information than ever before is out there just waiting to be nabbed by hackers and thieves. If you are not paying attention, they will sneak in and get your Social Insurance number, credit card info, and other personal information.

The Canadian government estimates that as many as 8 million consumers each year become the victim of identity theft. That makes it one of the fastest growing crimes in North America. It was the growing number of ID theft cases that gave rise to the need for credit monitoring services. There are now many different services to choose from, but not all of them are created equal.

Preventing identity theft is the number one reason to have your credit monitored. When your identity is stolen, the thief can then use your personal information to take out loans and accumulate debt in your name. A credit monitoring service will alert you to any suspicious changes or when items are added to your credit report, usually within a matter of hours.

There are plenty of people out there who don’t see the need for credit monitoring services. Read a few financial blogs or search Google for “credit monitoring” and you will be sure to find naysayers claiming that the service is a scam. They will tell you that you are simply wasting your money and are no better protected than you are with no credit monitoring at all. The flipside of that coin are the people who have been victimized in the past and who now know that credit monitoring CAN and WILL prevent you from being a victim of fraud or identity theft.

It’s tough to know who to believe, especially when there are some scams out there. One of the biggest issues are when credit monitoring services give you 30 days to try their service, only to continue charging you a monthly fee after you have already cancelled. If you are in any way unsure about who you are doing business with, check the Better Business Bureau for more information about the service you plan on using.

There is no credit monitoring service that is 100% foolproof, but they can cushion the blow inflicted by financial fraud. If you opt for a service that only delivers reports from one credit bureau, you may be opening yourself up to getting hit at one of the remaining credit bureaus. You would never know you were victimized until it was too late. The only way to get around that is to go with a credit monitoring service that provides reports from all of the credit bureaus (Equifax Canada and TransUnion Canada).

Now is the time to decide whether you are going to check your credit on your own, or go with a service to help you manage your credit. The small amount you will have to pay every month far outweighs the amount you could lose if you are unprotected.

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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