In most cases, a new inquiry will come from an expected source, such as a mortgage lender, bank loan officer, or even a potential employer or landlord. However, if an inquiry comes from an unexpected source, for example a mortgage lender when you are not currently in the market for a home or a mortgage loan, it’s important that you know about it immediately.
A popular trick for an identity thief is to use your information to open a new account. They then may be able to transfer money from your existing accounts into this one, or use the account to procure loans or credit cards that they have no intention of paying back.
Sudden large credit card purchases or cash advances, multiple credit card applications and similar types of unusual activity are not always, but are often a sign of identity theft. If any of this activity is happening to your accounts without your knowledge, you need to find out fast, so that you can take action before major damage is done.
This may not be as much of a security issue, but it is still good to know. If you just forgot to make a payment, you can correct the problem before it’s too late, and if you’re making a habit of late payments that will damage your credit, the credit report monitoring service will let you know so you can take action.
This can be helpful for those trying to repair their credit. It’s good to know whether the actions you are taking are healing your credit score or if you need to work even harder. Remember that you are only automatically entitled to one free copy of your credit score per year, so if you want regular updates, you’re going to have to pay for them.
Perhaps the most important thing a credit report monitoring service can bring you is peace of mind. Knowing that you are getting regular and fast updates of your credit monitoring information whenever a big change occurs can help you relax and feel much more confident that your credit, your money, and your identity are safe.