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According to Consumer Reports, 34% of Americans have an error on at least one of their three major credit reports.

Your credit score is a prominent factor in your financial profile. Good credit makes it easier to qualify for loans and secure low interest rates, so it pays to improve your score when it’s low and maintain it when it’s high. You can do both by paying bills on time and keeping your debt under control, but sound money habits aren’t the only steps to building and keeping a high credit score.

A 2013 study by the Federal Trade Commission found that 20% of Americans have an error on at least one of their three major credit reports. A 2021 investigation by Consumer Reports pegged that number at 34%. Credit reporting errors range from seemingly benign (like simple typos) to bad data and even fraud, but regardless of the root cause, mistakes of any kind can be costly.

Keeping an eye on your credit report is a great way to prevent such errors and minimize the damage they cause. Fortunately, a variety of credit monitoring services are available to help you do just that.

What is credit monitoring?

Credit monitoring is the practice of regularly checking your credit files for errors, inaccuracies, or suspicious activity. While you can do this yourself, credit monitoring services can automate this process. They alert you of activity in your credit profile such as new credit inquiries, accounts being opened or closed, increasing or decreasing balances, and more. Alerts don’t necessarily indicate error or fraud — you might get one if you forget to pay a bill, for example — but they help you respond quickly in the event that your credit is compromised.

A credit monitoring service by itself is like the dashboard indicators on your car: It can detect and warn you about potential problems, but it won’t solve them. The onus is still on you to respond, and much like a flat tire or low oil pressure, ignoring the warning …read more

Source:: Business Insider


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