Your credit report and score are factors lenders use and other institutions use to decide if you should get a loan. By repaying loans on time, being responsible with your money, and managing your credit, you can build good credit, making it easier to get a mortgage, a new business loan, or a lower rate on a credit card.
Why is having credit monitoring so important? Because all the hard work you put into building up a strong credit history could be ruined by a thief who uses your identity to take out fraudulent loans. With just a few pieces of information, they can rack up debts in your name, leaving a trail of unpaid bills and outstanding loans on your credit reports. Once you find out about the debt - often when you get a surprising call from a collection agency, or are denied a loan because of bad credit - it can take years of hassle to resolve the issue with lenders, police, and the credit bureaus.
And these days, it's not just lenders who are looking at your credit history. Landlords often check credit reports and scores before renting out apartments. Employers may look at credit reports as part of the interview process - meaning poor credit could cost you a new job. When you sign up for a new cell phone plan or cable provider, they will probably check your score. Bad credit won't just affect your credit cards, it can affect many areas of your life. Investing in consumer credit protection is worth considering.
With the importance that good credit history has to your day-to-day life, it is certainly worth taking steps to protect it. By actively monitoring your credit and putting in place credit card protection features to prevent thieves from using your personal information, IDEssentials from TrustedID can help you protect yourself.