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Credit Monitoring – Is It Worth the cost? Yes and No

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Question from reader is credit monitoring worth it?

Yes and No, first I pay for credit monitoring thru my bank USAA, I would use your bank for the option to purchase credit monitoring if it is available. It is much easier to cancel if you want to.

I was paying $12.95 and called to cancel and they offered it to me for $6.12 so I decided it was worth that.  SO first they are negotiable on the amount they charge.

The benefits I have found with credit monitoring:

  • See who is checking your credit report – if you haven’t tried to get credit then this is a RED flag for identity theft.
  • You have all the addresses and phones numbers of your previous creditors.
  • You can easily submit a dispute on an item on your credit report. (I just did this and fixed 2 problems on a friend’s credit report, one item was deleted and the other was updated.

The not so good from your credit monitoring:

You need to start monitoring you credit months before you need credit.  It still takes a few months for changes to go into effect.

Your credit monitoring is only small part of the overall credit picture, when you apply for credit many other things are verified before you get credit. (But I don’t care what your credit score is, what is important is the type of credit you are trying to get. There are other ways to get credit and they don’t even check a credit report.) Another article for that.

The credit monitoring companies actual CREDIT SCORES are call SOFT SCORES, this covers their ass. Once you actually start shopping for credit and a HARD SCORE is pulled is when you know your actual score.  Note from my Experian Credit Monitoring Service “Your PLUS Credit ScoreSM is a numerical representation of your credit worthiness. Most lenders use some sort of credit scoring system when they’re considering extending you credit.”

I am in the process of refinancing and my credit monitoring scores are as follows:

  • Experian – 763
  • TransUnion – 768
  • Equifax – 768

These are all considered very good scores, but once I actually started shopping for my refinance. A different picture.

Rels Credit was a company used and my credit score was then 686, wow that is a hellava lot different.  What did they use, the letter I received stated source was Equifax.

I have another also but that is irrelevant.  Interesting fact they listed on the letter:

Range of Possible Credit Scores Under the Model Used:

  • EquifaxBeacon50 -   300-850
  • ExperianFairIsaac – 150-950
  • FICORiskScoreClassic04 – 336-843

So you decide if credit monitoring is worth it.  I would personally recommend it.


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About the Author

Rhonda Evans

Rhonda is the founder and editor of MoneyPoint Live. She is a retired Senior Chief from the USN, mother of two, previous small business owner, and entrepreneur.

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