Business credit plays a huge role in providing the necessary financial aid to startups and small business owners. However, your job isn't done just after establishing business credit. With an ever-increasing number of security breaches and frauds, it becomes vital to monitor your credit reports and activities regularly.
Depending upon certain factors, you may be eligible for a free credit monitoring service or can monitor your credit reports yourself. You can also choose to pay for credit monitoring services. If you are considering opting for a paid credit monitoring service, you would want to know whether it is worth the cost or not, right?
This article will help you understand the basics of credit monitoring and whether it is worth buying a fee-based service or not. Read on!
What are Credit Monitoring Services?
As per Federal law, you are eligible for a free yearly credit report from each of the three national credit reporting agencies in the United States– Equifax, TransUnion, and Experian. So every time you pay your bills, apply for a new account, miss a payment, etc., it all shows up on your credit report.
Credit monitoring services regularly monitor an individual's or business's credit reports and alert them in case of any suspicious activity, identify theft, potential fraud, and changes to their creditworthiness. They help you keep a check on important updates like hard inquiries, missed payments, new accounts, unusually large expenses, etc. By staying constantly updated on all this you can maintain a positive credit history and protect yourself from all kinds of potential fraud.
How Can You Monitor Credit Reports on Your Own?
While credit monitoring services help you keep a track of changes in your credit reports, and alert you about the same, they cannot actually protect you from identity theft or fraud. They
merely notify you that there’s a problem with your credit report so that you can take the necessary action.
So before you decide to pay for a credit monitoring service, it's important to understand that you can do most of the monitoring on your own too. Here's how:
- Regularly check the detailed information on your credit reports
- Monitor changes in your credit scores and reports by signing up for a service from your credit card company or finance website that offers free credit scores.
- Add fraud alerts to your credit reports.
- Get a credit freeze, one of the strongest options to prevent criminals from accessing your credit information.
Benefits of a Credit Monitoring Service?
While you can monitor your credit reports yourself, it is a time-consuming process. And there are still possibilities of you missing out on some discrepancies. So if you are in a situation where you constantly need to stay on top of your credit reports and activities but do not have the required time to commit to it, then paying for a credit monitoring service can be a really good option.
Here are some of the benefits of choosing paid credit monitoring services:
- They help you stay up-to-date on all the activities that have an impact on your creditworthiness.
- They update you on all the inaccuracies before they take a toll on your credit scores and harm your financial health.
- Such services can track and analyze your credit reports and activities daily, weekly, or monthly, according to your needs. This helps you save both your time and energy that you can spend on doing something more important for your business.
- While credit monitoring services cannot stop identity thefts or fraud, they immediately alert you about them enabling you to take swift action and avoid serious damage. This is not possible if you wait to check your credit statements yourself.
You should especially go for a paid credit monitoring service if:
- You lack the time and resources to monitor your credit reports yourself
- You don't prefer freezing your credit reports
- You have previously been a victim of identity theft or you find yourself at a high risk of security breaches.
While you can choose a free credit monitoring service or go for the do-it-yourself approach, opting for a paid service definitely has its own benefits and if you can afford it, it's definitely worth the cost.
If you are looking for a credit monitoring service that is both effective and affordable for your business, then we at Trak can offer you just what you need! Our new and comprehensive business credit monitoring service will provide you with accurate and detailed reports on all your trade accounts so that there is no chance of any discrepancies and your business stays protected at all times!