Credit Monitoring, Why You Should Use Them

Some people believe that credit monitoring is only necessary if you have a troubled credit history. This is not the case. It’s just as important to use credit monitoring to maintain a great credit rating as it is to improve a poor one. When you sign up for credit monitoring you will get important information from your major credit reports through Equifax, Experian, and TransUnion. This allows you to track them and ensure all your reported information is accurate. Most monitoring services also allow you to dispute negative items.

Top Reasons You Need Credit Monitoring

credit monitoringCredit monitoring can be used as a credit repair tool. This is in addition to avoiding any inaccurate notes on your file. This can help you figure out what weak points you have in your credit and improve this going forward. Most credit monitoring show major factors in your credit score. As a result, this allows you to adjust your financial approach to get a better credit rating. This impacts your chances of getting a car or home loan.

Monitoring your credit can protect against identity theft. This is a fairly important feature. Identity protection is becoming increasingly important. We live in an era where so much information is stored online. Credit card fraud and identity theft are becoming significantly more common. Cyber criminals have been able to hack databases of major companies and obtained credit card information. No one’s information is completely safe.

Some monitoring services will provide you with all three scores for free. This is a great feature when you’re in the process of repairing your credit, it gives you a way to track your progress on a monthly basis. Information can be the difference between improving your finances or staying the same.

Credit Card Consolidation, What is it?

Credit cards do come in handy, however, they do carry a certain amount of risk. You have to focus on paying the bill in full each month and on time. Along with everything else in life, keeping track of credit card balances can be stressful. There are options to juggling multiple credit cards. There is credit card consolidation.

What is a Credit Card Consolidation?

credit card consolidationCredit card consolidation is the process of combining existing debts into one new debt. This is an opportunity to get yourself out of a bad situation. The goal of the consolidation is to become debt-free in a quick and cost effective way. If you have multiple credit cards a consolidation will merge these into one account. This allows you to make one payment per month to one creditor, rather than multiple payments to multiple creditor. Another benefit to this is you only have one interest rate. If you play your cards right, this make paying your debt down cheaper and faster in the long run.

Credit Consolidation with a Loan

There are two ways to consolidate your debt. You can do a balance transfer or a loan. A balance transfer card will combine all your credit card balances into one new card. Depending on the lender this could come with a fee, usually this is a percentage of the transfer. Like most other credit cards, your score will come into play. If you have a good score this will be a viable option. Balance transfer cards typically have low introductory rates, sometimes even as low as 0%. However, these rates generally last for about 12 to 18 months.

Another option is consolidating your debt using a loan. With this all your debts are collected under a single payment. There are a few types of loans you can choose from, personal loans, home equity loans, or 401(k) loans. You can get a personal loan from a bank, credit union or an online lender. The interest rate will depend on your credit score. However, personal loans generally have low interest rates.  Personal loans come in various sizes and term lengths.  Home equity loans allow you to borrow against your home’s value. You can get a home equity loan if your home is worth more than what you owe. These typically carry a low interest rate and is like a second mortgage.  Lastly there is a 401(k) loan. These should be considered a last resort option. Home equity loans borrow against your home’s value and a 401(k) loan borrows against your 401(k).