3 Reasons You Should Use Online Credit Monitoring Tools

Posted on: 20 April 2021

Are you taking advantage of online credit monitoring tools? If you have not used these tools, you continue to miss out on the opportunity to improve your credit score while preventing identity theft. Using these tools could help you achieve a higher credit score over time.

You Can Quickly Keep Track of Your Credit Score

It helps to know your credit score, especially if you plan on applying for different things, such as a loan for a car or home. If you would like to have access to lower interest rates and better deals, you need to have a good credit score. Using the online credit monitoring tools, you can note your current score and then take steps to make improvements if need be. For example, if your score is lower than you would like, you can make an effort to put more money down on your debt. When you owe less money to creditors, your score will start to increase by several points.

Monitor Your Credit Card Utilization

You might not realize how much you are using on your credit cards. It is easy to swipe them and forget about them until you have to make a minimum payment on a certain date. However, when you use the online credit monitoring tools, you can see exactly how much of your available credit you are using. It is best to use 30% or less of your available credit. When you use more of your available credit, it negatively impacts your credit score, causing it to drop by several points. By monitoring your utilization, you can make more payments to use less credit and improve your score eventually.

Keep an Eye on Your Current Credit Report

The online credit monitoring tools will show you any current credit cards or loans you have applied for with any company. You can monitor this section to make sure no one is using your social security number in an attempt to get credit cards and spend an excessive amount on them. If you notice anything out of the ordinary, you can immediately report it to the credit bureaus to have an investigation done. If you were ever the victim of a data breach, you should check your credit report using these monitoring tools at least once a week.

Online credit monitoring tools are a significant convenience for consumers. If you are not already using these tools, it is an excellent time to start. The tools make it possible for you to easily keep track of your credit score, work on your utilization, and monitor your report for any changes.