Understanding Credit Monitoring

Credit score monitoring is a simple and easy way to keep yourself acquainted with how lenders will view your financial status. Whether you are looking to open up a new line of credit‚ interested in financing a loan, or have your sights set on a new car that you can't pay for in cash‚ you’ll need to know where you stand before making any of these wishes a reality.

How many credit scores are there?

There are many different credit scores assigned to you. Each is calculated differently but most are generated using complicated formulas that balance your "positive debt" — payment on loans attained to pay for college or a house‚ for example, with you "negative debt" — an overabundance of credit cards or delinquent loans. It uses these opposing factors along with your payment history to determine your credit scores.  Each of the three credit bureau generates its own credit score, in addition to the other lenders and institutions that do as well. There is no single credit score assigned to you because each score is calculated differently by the credit bureaus‚ lenders‚ and financial institutions.

Checking your credit score and report

While you are entitled to receive one free credit report from each separate credit bureau annually‚ you have to pay for this access for each subsequent look at this document during the year, and the free report does not include a score.

If you enlist in a credit monitoring service‚ your service will monitor your credit files for you, alerting you to certain changes or activity that may indicate fraud. This makes a credit monitoring service a good method to keep track of changes that may impact your credit score or show early warning signs of possible identity theft.

Knowledge empowers you to make the best decisions‚ and a credit monitoring service can help you learn more about your credit. To better monitor your identity and privacy protection, consider signing up with Identity Guard. No matter where you are in life, Identity Guard can help.