Why Credit Monitoring is a Must

The financial recession over the past couple of years has had a remarkable impact on the United States. The number of people seeking help from bankruptcy courts as well debt settlement agencies has increased. In turn, more people are learning to shy away from a large amount of debt and do a better job of planning major purchases. But monitoring one’s own credit file still seems to be near the bottom of the list of important things to do.

Need for Self Monitoring

One of the reasons why people should be more aware of their credit file is the danger of identity theft. The proliferation of the internet and its reach into so many parts of people’s lives has made it vastly easier for unscrupulous individuals to find the sensitive data that they need for perpetrating their crimes. By the time a person is aware of the outlandish charges and seeks out the advice of police or a Chicago bankruptcy attorney, the damage has already been done.

How the Service Works

A monitoring service provides various services to customers, all for a nominal fee. Most of the services involve alerting customers to new credit inquiries, changes in active accounts, and any derogatory item that might appear such as a collection, tax lien or default. In addition, most of these services will provide assistance in contacting creditors in the event a credit card or piece of identity is indeed stolen.

Prime Targets

Some of the best targets for this type of crime are people who have recently been discharged from a bankruptcy plan. An experienced Chicago bankruptcy lawyer will be the first one to state that a person fresh out of bankruptcy has a new, clean record. They can apply for a few small credit cards, as well as a car loan with a high chance of being approved. This is the exact target of identity thieves. This is why it is so important for people currently in a bankruptcy plan, or recently discharged, to seek out a good monitoring service that will add protection to their credit file and information.