Credit Monitoring Services Vs. Credit Reporting Agencies

Credit Reporting Agencies and Credit Monitoring services provide a valuable service for consumers. Credit Reports allow consumers to be informed on what is contained in their credit files, his or her level of credit worthiness, and the credit reports will provide tips for how to improve his or her credit rating. All credit reports give consumers a look at what personal information, account listings, public records, and inquiries are being reported on him or her. It is so important in this day in age for consumers to be coconscious, as well as, pro-active to maintain his or her credit report in order to reap the full benefits achievable because of a good credit rating. There are some critical differences consumers should consider when deciding where to obtain his or her credit report.

First, the Credit Monitoring services are charging consumers a fee over the course of a year, if the consumer actively pulls credit reports often, that is a very good deal. Sometimes the Credit Monitoring Service is misleading when they offer free credit reports to consumers, in the fine print is a note indicating that by taking the free credit report offer the consumer will be enrolled and billed for a year long membership to the business's products. On the other hand Credit Reporting Agencies charge more for the credit reports if the consumer buys individually. Some Credit Repointing Agencies offer Credit Monitoring, but usually this is outsourced to an affiliate advertising on the Credit Reporting Agencies wed site. Consumers are entitled to free credit reports from the 3 major credit reporting agencies if they fall into one of the acceptable categories: denied credit, denied employment, adverse action, planning to seek employment, victim of ID Theft, or if the consumer is currently on public aid assistance.

Second, the Credit Monitoring Service will provide consumers an advantage to identify immediate threats of ID Theft. The problem is that the consumer can neither report, nor activate a fraud alert through the Credit Monitoring Service. The consumer would be required to contact the Credit Reporting Agencies to handle this matter. In addition the consumer can dispute only with the Credit Reporting Agency to notify creditors and collection agencies that the he or she is a victim of ID Theft. Credit Monitoring Service credit reports lack the necessary phone number and required report number, to access the Credit Reporting Agencies customer service department. When the consumer call the Credit Reporting Agencies can obtain a free credit report, but that takes time to receive before they have the number needed to get into customer service. Customer Service numbers are not readily available to consumers until they order a credit report, a consumer can't just go to the Credit Reporting Agencies web site to get these numbers.

Third, data contained on Credit Monitoring Service credit reports are not as complete and through as the data contained on a Credit Reporting Agencies credit report. The Credit Monitoring Service credit reports will sometimes be missing crucial addresses to contact the creditors responsible for the items showing up in the consumer credit report. Sometimes Credit Monitoring Service credit reports are missing detailed month to month graphs showing payments and status. Also, Credit Monitoring Service credit reports don't show key expiration dates on derogatory account listings. Expiration dates are crucial to determine initial default date when the statute of limitations starts, this is the period of time a consumer can legally be sued on an outstanding debt. If the creditor tries to sue the consumer, he or she could use the credit report to show proof to the court that the debt was time barred. This law required by the Fair Credit Reporting Act allows consumers not to be burdened by debt unfairly after a period of time has expired.

In conclusion, the Credit Reporting Agencies credit reports far exceed the use of Credit Monitoring Service credit reports. The credit reports may cost more, but the Fair Credit Reporting Act allow circumstances for consumers to obtain free credit reports. Consumers may not have the day to day access to catch ID Theft, but there are other ways to monitor this problem then viewing the credit reports. Consumers can check his or her bank statements, he or she receives from the creditors each month. The old adage applies that "you get what you pay for." The quality and access to customer service for the Credit Reporting Agencies credit reports is well worth the money spent.