What is credit monitoring, and how does it work?
Hi, can someone pls explain to me in clear, layman terms, what exactly is credit monitoring and how does it work?
I'm thinking to apply for some loans and friends told me that lending institutions do this credit monitoring before or something like this in order to determine whether they will give the loan or not.
Is this true? And what exactly this monitoring entails? Thanks people!
That’s a service your bank offers to alert you whenever changes are made to any of your credit reports.
You’ll generally get notifications about this through a phone call, email or text message and you should pay great attention to them because if there are any unexpected changes, you might be the victim of credit fraud!
Yes, Sonny’s right.
You are confusing credit monitoring with credit reporting. You are talking about lending institutions’ use of credit reporting agencies to find out things about your previous credit history, creditworthiness and so on in order to assess what are your chances to pay back a loan in case they decide to grant you one.
Credit monitoring is a service offered to you to protect any kinds of credit fraud which might occur, so it’s something completely different…
As far as I know, that’s not free of charge sadly…But sometimes your bank can offer you some good discounts, you should better check with them. Same with the activation thing - ask them, they’ll certainly do it for you.
Anyway, I recommend it, I used it for years and it’s very good for keeping track for example of your credit score which will help you know for what kind of mortgages/loans you might be eligible to apply in the future and other things like this. And of course, you can be alerted should credit fraud will occur. A very great service indeed!