31 Mar 09 Credit Monitoring More Popular with Credit Crunch

Don’t forget, credit line declines will usually cause FICO scores to drop if there is any balance at all. These are a few of the gory details coming from the consumer stories declaring damages to credit reports stemming from finance companies cutting credit lines.

Credit repair has been popular for the last decade…But the latest trend is credit monitoring which really helps out the paranoid consumers who are always nervous about someone trashing their credit history.  Did I say, Stupid?… I meant to say Smart, because this is a wise move as access to credit reporting becomes easier and easier every day.  Credit scores can also be damaged by account closures or late payments (delinquencies) triggered by due date mortgage loan modifications or minimum payment increases. A recent Trans Union study found that the credit card delinquency rate in the 4^th quarter of 2008 was 1.21 %, an increase of 11 % over the third quarter.

In this tumultuous financial market, consumers can use credit monitoring programs as a way of keeping a close eye on their credit scores. Credit monitoring subscriptions vary but usually include ongoing access to three credit reports, three credit scores, identity theft insurance coverage, and other credit management tools.  Monitoring services also deliver email alerts to consumers regarding credit data changes. This key feature ensures that consumers are notified early about damaging credit account changes. “We typically see upswings in identity theft linked to downturns in the economy,” said Intersections Chairman and CEO Michael Stanfield in a company release. “Today’s difficult economic climate is likely contributing to this spike in identity theft. Now more than ever, consumers must be vigilant, and take a more holistic approach to protecting their identities from being compromised by fraudsters.” With credit monitoring, consumers can maintain some control over their credit standing despite the uncontrollable changes and trends in the economy.  Read more of the credit monitoring article >