Protecting your identity on the internet is more critical than ever before. According to a recent report from Consumer Affairs, the Federal Trade Commission (FTC) processed more than 1.4 million identity fraud reports in 2018. With numbers like these, identity fraud insurance has become increasingly critical for every consumer to consider. While identity fraud insurance and credit monitoring are often used interchangeably, they are actually quite different from one another. In this article, we’re going to take a look at the difference between these two services, why they are essential, and how SmartCredit can help you stay prepared for anything regarding your credit. Keep reading below as we discuss how identity fraud insurance and credit monitoring services work in collaboration with one another. Credit Monitoring Services and Identity Theft InsuranceWhat Is Credit Monitoring?Credit monitoring is precisely what it sounds like. Credit monitoring not only helps consumers stay protected from identity theft, it also tracks consumer credit reports and credit scores. This service acts as a watchdog of sorts to alert you of any fraudulent or unauthorized activity on your credit accounts. In the event that fraud takes place, the credit monitoring service will alert you so that you can take appropriate action. While some credit monitoring services vary based on the provider, most activity reports contain the following information:
Consumers worried about their ability to keep track of their credit on their own often find credit monitoring to be incredibly useful. If you have a low or mid-level credit score, credit monitoring services provide you with an extra set of eyes on your credit accounts at all times. What Is Identity Fraud Insurance?While credit monitoring services might point out that there’s been fraudulent action in your credit report, in many cases, by the time you find out, it’s likely too late. By then, a cybercriminal could have made off with thousands of dollars under your name, possibly damaging your credit report forever in the process. Luckily, this is where identity fraud insurance comes in. Identity fraud insurance provides you with the reassurance that you will get personal help from identity theft specialists who know how to navigate the intricate process of identity recovery. Identity fraud insurance covers expenses associated with the consequences of your identity being stolen, such as attorney and tax adviser fees, credit report fees, notary fees, and loss of income while dealing with the fraud. Before choosing an identity fraud insurance, there are several things to consider beforehand, such as what the policy limits are and if there is a deductible. Choosing the Right Service for YouWhile every consumer can benefit from these two services, consumers who are at a higher risk of identity theft than others may want to consider purchasing these two services. Notably, consumers who have had problems with identity theft in the past may find that identity fraud insurance and credit monitoring are a necessary precaution to take concerning their credit. Additionally, consumers who are working to rebuild their credit may find identity fraud insurance and credit monitoring particularly useful to prevent anything from slowing any progress they’ve made. In addition to identity theft insurance and credit monitoring, you should also plan to find ways to minimize your risk of falling victim to identity theft. Here are a few best practice suggestions you should consider implementing:
Protecting your identity is a full-time job, and there’s no such thing as too much protection. Whether you’re a consumer who is at risk or not, identity fraud insurance and credit monitoring is something every consumer should consider to prevent their information from falling into the wrong hands. Protect Your Financial Future With SmartCreditWhile neither of these services can prevent fraud from ever occurring, they can help you take proactive measures and the necessary steps if it happens to you. With SmartCredit’s identity fraud insurance services, you can rest assured knowing that your entire family is covered up to $1MM in identity fraud coverage. Most competitors only offer identity fraud insurance for the person that is registered. Additionally, SmartCredit makes it easy for consumers to file disputes and claims in one easy-to-find location. Rather than spending precious time writing to each individual credit bureau or creditor, SmartCredit’s action button makes it easy for you to view any accounts that are negatively affecting your credit score and take direct action and get to the source of the issue.* With SmartCredit, you can rest assured knowing that your credit is being monitored for suspicious activity 24/7. Stay alert with SmartCredit and register for identity fraud insurance today to protect your financial future. Sign up with SmartCredit today to take back control of the future of your credit score. *Results and timing of results may vary depending upon your circumstances. To learn more about how to safeguard your identity and credit online, visit the SmartCredit website today! The post How Identity Theft Insurance and Credit Monitoring Work Hand in Hand appeared first on SmartCredit Blog. from https://blog.smartcredit.com/2020/08/03/how-identity-theft-insurance-and-credit-monitoring-work-hand-in-hand/
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When you get a credit report, you’ll find tons of information about your borrowing habits that can be difficult to understand. The process of credit scoring and how your credit score is determined is somewhat unknown to the public. Unless you work for a credit bureau, you’ll likely never know or understand the algorithm that determines whether you’re a borrower with low risk. The two largest credit scoring model creators in the US are FICO and VantageScore. They provide borrowers with a look at the different types of things that can affect credit scores. Once you understand how your actions influence your scores, you can improve your credit score and get the best rates on loans. In this article we will focus on VantageScore as it is the scoring model also used in consumer credit reports. Many of the components we’ll discuss cross over into FICO, so make sure to read everything so that you can understand your credit score fully. 5 Factors That Affect Your Credit ScoreThe credit score you receive is based on information found in credit reports. Your credit score score is influenced by five categories:
They each influence your score in different ways. Payment History influences your score the most, followed by Amounts Owed and so on. We’ll discuss the percentage of each factor and just how much it affects your VantageScore credit score. Payment HistoryYour Payment History impacts your credit score the most. The purpose of a credit score for lenders is to determine whether or not you are likely to make your monthly payments on time. If you have a history of paying your bills late, then lenders believe that you’ll continue to make late payments. If your risk is higher, your credit score will be lower. A lower credit score means that you’ll likely be offered the loan or credit card but with a higher interest rate. In some cases, if your credit score is low because of a history of late payments, you won’t be able to get a loan, mortgage, or particular credit card. A good credit score suggests to lenders that you pose less risk, which means you’ll have lower interest rates, ultimately paying less on the loan in the long run. All three of the major credit bureaus – Equifax, TransUnion, and Experian – receive updates about your payment history from credit card companies, lenders, and collection agencies. Length of Credit HistoryVantageScore does not take your age into account when calculating your score. However, the age of your accounts does matter as the length of credit history has the second highest impact on your credit score. Lenders see those with longer credit histories as less risk because they have more data to use when determining ideal borrowers. With more information, the results of the scoring are more effective, which can help lenders make important decisions. While length of credit history is a large portion of your credit score, it’s important to remember that if you’re new to credit cards and are just starting to build your score, paying your bills on time is the best way to increase your score. There are a few factors that are considered when it comes to the length of credit history, including:
Opening too many new accounts at one time can lower your average age of credit. You should also avoid closing old accounts if possible. Apart from accounts in collections, those accounts can build your credit score. However, you’ll need to manage your credit carefully. Late payments can always hurt your score. Amounts OwedAmounts Owed is another of the most significant parts of your credit score. Amounts Owed is the amount of debt you carry, including credit card debt, student loans, and more. What you need to know about amounts owed is the term credit utilization. Your credit utilization is the amount of available credit you have each month on revolving credit accounts, like credit cards. The more of your credit you use each month, the higher the credit utilization ratio gets, and the lower your score will be. For example, if you have a credit card with a $500 credit limit and have used $400 of it, your credit utilization ratio is 80%. In order to improve your credit score, you should aim for low utilization rates of 10% or less. One way to do this is by paying off your credit cards online as often as possible instead of waiting for that monthly bill to come in the mail. Types of Credit UsedThere are different kinds of credit out there and it’s important to have a mixture of account types on your credit report. This model rewards you for having a mixture of different accounts such as credit cards, an auto loan, and a mortgage because it demonstrates that you are paying on-time with all types of loans. The collective term for the types of credit used is the credit mix. While it’s not the most important component of your score, you can still earn points over time in this category. New CreditNew Credit makes up the final portion of your credit score. Having too many new accounts in a short period can hurt your credit score. When a lender requests a copy of your credit report, that record of access is added to your credit report in the form of an inquiry. There are two different types of inquiries; soft and hard. A soft inquiry won’t hurt your credit report, but a hard inquiry can lower your score for a short while. Hard inquiries take place when you apply for a loan or credit card, and the lender pulls your credit report. The number of hard inquiries that appear on your report within the last 12 months is taken into account to determine your score. Too many recent inquiries demonstrate that you’re in financial distress, which can cause your score to decline. If you’re planning on buying a house, it’s best to avoid too many hard inquiries in the few months leading up to looking for a mortgage so that your score is at its highest. Check Your Credit Report OnlineNow that you know everything there is to know about your credit report and what factors are important, you can find your credit report online and begin taking steps to improve your credit score. The post 5 Components You’ll Find in Your Credit Report appeared first on SmartCredit Blog. from https://blog.smartcredit.com/2020/07/31/5-components-youll-find-in-your-credit-report/ |
About UsWe are a group of fun and creative people building unique and patented technologies for the consumer money, credit & identity space. We started in 2003 with the idea that technology should allow consumers to interact with their banks, creditors and other institutions using a simple button. So, we noodled a lot and built the SmartCredit.com® system to make better users of money & credit. Archives
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