Do you know what your credit score is?
A credit score is a three-digit number between 300 and 900 that indicates your creditworthiness. In other words, this score impacts how likely lenders are to let you borrow money.
In essence, the higher your credit score is, the better. You need a credit score over 600 to qualify for a credit card, and it takes a credit score of at least between 620 and 640 to qualify for a mortgage in 2022.
With this in mind, credit monitoring is an essential part of financial responsibility.
Credit monitoring tracks your financial information and alerts you of any positive or negative changes in your financial situation, including new accounts opened in your name or significant purchases, such as cars.
While it can’t prevent fraud, it does provide you with an early warning that can help you take appropriate action quickly to help prevent damage to your finances. The sooner you learn about any kind of theft, the easier it is to protect yourself.
In our increasingly digital world, fraudsters are getting better and better at extracting the sensitive information necessary to practice identity fraud, including opening up credit card accounts and taking out loans in your name.
A credit monitoring service can track your credit reports and scores and monitor your consumer information, allowing you to take the necessary steps to ensure you maintain a healthy credit score and don’t fall victim to identity theft.
There are both free and paid credit monitoring systems. The free tools, such as Credit Karma, offer basic services that allow you to monitor your credit score and financial activity.
Paid credit monitoring services offer more sophisticated tools, such as simulators, which can show you how specific actions will affect your credit score.
Both options are an excellent way to ensure you keep an eye on your credit score and protect yourself from identity fraud.
iCASH is an online loan provider in Ontario that provides financial help.