Credit monitoring is important because it notifies you of important changes to your credit report, which can signal identity theft and fraud. Credit monitoring is usually completely free and can help you avoid financial turmoil with minimal effort. In fact, no one can realistically keep tabs on their credit reports 24/7 without the help of a credit monitoring service (or a credit freeze).
In particular, credit monitoring can:
Make it easier to identify and correct credit report mistakes.
Serve as an early warning system for signs of identity theft.
More than a third of Americans (34%) found errors on their credit report in 2021, according to a Consumer Reports investigation. The Federal Trade Commission also released data showing consumers lost more than $5.8 billion to fraud in 2021. Although the numbers are staggering, credit monitoring can mitigate potential damage to your finances.
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