DO YOU MONITOR YOUR CREDIT?

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Have you ever considered monitoring your credit report in order to prevent fraud? 

 

Typically, preventing fraud is not one of the reasons that we are think of in regard to our credit report.

Note:  This post was originally written in 2018.  In two quick years our world has changed drastically.  This post has been updated to reflect a current concern following the pandemic.

 

Recently an elderly lady made her way into the office where I work.  Although I am not employed by the state and have nothing to do with unemployment, our office is often mistaken for the unemployment office.

She was greatly distressed due to the fact that she had received a 1099 for her husband outlining his unemployment earnings for the past year (2020).

The problem?  He had been deceased for several years.

If this were an isolated incident, it would be one thing.  Sadly, it is not.  It is a story that is repeated in our office on an ongoing basis. 

Even people who are currently employed and have never been laid off during the pandemic, found themselves the recipient of a 1099 issued for unemployment. 

 

Due to the federal unemployment benefits available because of the pandemic, unemployment fraud is running rampant. 

 

My first response when I hear about yet another incident of someone receiving an unemployment statement is, “monitor your credit report and consider freezing your credit”.

If an individual was smart enough to get your personal details to file and receive unemployment, they are certainly smart enough to use that information to apply for and receive credit in your name. 

Your first line of defense is to regularly monitor your credit reports.  (I am seriously considering freezing my credit.  That is a post for another day)

 

So how does one monitor their credit?

 

By law, everyone is entitled to one free credit report annually from each of the three major credit reporting agencies. 

Because I want to monitor my credit more often, a few years ago, I signed up for  Credit Karma 

Credit Karma is a free credit monitoring service that allows you to access both your Trans Union and Equifax credit scores as often as you want. (no dings to your credit for checking.  It is not considered a “hard” inquiry)

You are able to review the status of all of your accounts. 

One of the best features is the credit alert for which you can sign up.  You will be notified if anything important changes on your credit report.

Hopefully, by having access to the tools offered on Credit Karma, you can stop fraud before it causes untold chaos in your life. 

 

There are a multitude of reasons to monitor your credit. 

 

But following the pandemic, stopping someone from wrecking your hard-earned, good credit, is my current top reason for closely monitoring my credit.

 

READY TO FOLLOW ALONG?

 

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(it’s a little thing that would mean a lot to me!)

 

 

 

 

 

 

 

 

 

9 thoughts on “DO YOU MONITOR YOUR CREDIT?

  1. I have a Discover card and it has a FICO score on the app. Checking it out in credit karma is a good idea because all discover gives you is a score, not the itemized list. I believe 816 is good but I don’t really know much about it. I know it is a good idea to have good credit but I don’t use it much. I charge something to my Discover card each month and pay it off so I will have credit. Paul and I save up for vehicles and other big purchases so I don’t use my credit card much.

    1. Knowing your FICO score is very important. And yes, 816 is a great score! Good for you for paying off your credit card each month! The reason that I think it is so important to take it a step further is so that you can catch a problem before it has morphed into something that will take hours and hours and hours to correct. I will be writing more on credit in the future because it really is a big deal.
      Thanks for checking in. Give that sweet baby kisses for me!

    1. Checking your credit score on your own has no negative effect on your credit score.
      I check mine about once a month.
      If you log into Credit Karma, there is a snapshot showing you how the score is derived.
      Let me know what you think.

  2. Thanks for this; I really need to sign up for Credit Karma just to keep an eye out! You’ve got me curious as to what mine shows!

  3. Credit Karma is definitely my go-to for helping me stay on top of my credit. I like that they notify me if there has been any change to my credit report or an update of my score. I don’t know if I would remember to do this regularly without their reminder emails!

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