How Identity Theft Insurance and Credit Monitoring Work Hand in Hand
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 Insurance
What 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:
- Hard inquiries that were made on your credit report (i.e., someone applying for credit in your name)
- New credit accounts opened in your name.
- Outstanding balances on your credit products.
- Name or address changes in your credit file.
- Public records and personal information that may have been exposed (i.e., your social security number, bankruptcies, email addresses, and passwords).
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 You
While 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:
- Shred all personal and significant documents.
- Do not carry any personal identity documents along with you, such as passports, Social Security numbers, and birth certificates.
- Do not disclose any private information over the telephone or insecure websites.
- Regularly monitor your credit reports and bank documents to identify any unusual activity.
- Be aware of potential phishing scams and cybercriminals posing to be from legitimate companies.
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 SmartCredit
While 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.