Is Credit Monitoring Worth It?

Online, October 10, 2011 (Newswire.com) - With incidents of identity theft on the rise, consumers are often encouraged to sign up for a credit monitoring service. But there are critics of this practice, who say it's just not worth the money.

Credit monitoring services will monitor the Internet and databases for your personal information and report changes or alerts to you. Most will give you unlimited access to all three credit reports and your credit scores, send you alerts regarding any changes to your reports or scores, and alert you to any new accounts or inquiries. Some of the services will also check forums and chat rooms where stolen information is sold.

Many of them will also provide identity theft protection up to about $20,000. Prices can vary, but average around $13 a month.

Critics call these services a waste of time and money. You can get a copy of your credit report each year for free. But this doesn't provide you with your credit score.

Those same critics say credit monitoring is a good idea if your identity has been stolen and you're cleaning up the mess left behind.

In some instances, credit monitoring is used to protect children. Critics of this say that in most instances, children are victimized by their own parents. They recommend checking your child's free credit report annually. If there's no report, there's no problem. If you receive phone calls from bill collectors, or if you start receiving pre-approved credit offers in your child's name, then you should worry.

The truth of the matter is that no one can effectively monitor his credit on his own. Credit monitoring services check for your personal information 24/7, and in places most people would never think to look, then notify you if there's any issue. There is a cost involved, but isn't it worth it to know that if there's ever an issue, you'll be notified before any real damage can be done?

Don't think so? Just ask an identity theft victim who has lost his credit, his home and countless hours trying to restore normalcy. An ounce of prevention is, in this case, worth the $13 a month.