What is a credit alert? A lot of credit card companies provide some type of credit alert. It's a monitoring system for an annual fee and they range probably from $39-$99. Identity theft is a growing crime...
Identity theft is a growing crime in the United States, so individuals need to monitor their credit at all times. Credit card companies are now providing a service called credit alert. A credit alert is a type of monitoring system provided by the three major credit companies. Credit alert allows an individual to track their credit every time someone obtains their credit file, when additional information is added or changes occur on an individual's credit.
According to My credit file.com, "by monitoring your personal file, an individual can be alerted to any adverse changes to your credit history that may affect your ability to obtain credit."
The monitoring system charges an annual fee, and the price ranges from $39-$99. The package includes a free copy of a credit report each year, a quarterly statement telling the individual what has occurred on their file, and a form to dispute anything that shows up.
"I recommend that you monitor your statements and look at things more closely and more frequently," says Lori Lamb, a credit correction and education supervisor with Springboard Non-Profit Consumer Credit Management. She has worked in the credit industry for 12 years. "Every day thousands of changes are made to an individual's credit file, such as new inquiries, an address change, change of employer, and adverse information; so stay informed."
Individuals can now receive one free credit report from each of the three credit agencies each year. By regularly requesting and monitoring an individual's credit, it provides a good way to get around having to pay for a monitoring service. To obtain free credit reports, go to annualcreditreport.com and request a copy.
To know when changes are made to an individual's credit, an email will be sent notifying them. According to Id theft center.org, credit monitor alerts are not preventative of identity theft, but allow for an individual to become aware of a problem earlier than usual. Consumers should not have to pay for this service, because "consumers need to press for laws that require mandatory fraud and security alert observation," says Lamb. However, until that does happen, choose a service that covers all three- credit monitoring services so one can receive accurate, up-to-date information. If an email is sent to an individual stating that a change was made to their credit, then the monitoring service should provide information as to which credit service the problem area came from.
Also, it is beneficial for consumers to know their rights regarding the federal laws that protect consumers' credit, says Lamb. The more an individual knows about The Fair Credit Billing Act, the Fact Act, The Fair Credit Reporting Act or even the Federal Debt Collection Practices Act, the better. An individual is protected under the law when a person is subjected to identity theft, so everyone should know these rights. If not, an account that was not paid due to identity theft can be turned into a collection agency without the individual even knowing, causing more damage to their credit.
