Learn Credit Score in Canada Creditor Monitoring - What are your options?

Creditor Monitoring - What are your options?

In today's world, your credit score is as crucial as your finances. You will need a good credit score when applying for loans, approval for a new apartment or even when buying a new cell phone on contract. Traditional lenders may be reluctant to give you a loan, but you can still get a loan online with bad credit through trustworthy lenders like iCASH.

Identity theft is causing many consumers headaches and sleepless nights as it affects their credit reputation negatively. You need to protect yourself against identity theft as it is more prevalent today. While you are entitled to an annual credit report from the three credit bureaus, it may not be enough to protect you against financial identity theft. One of the sure ways to cover yourself is through credit monitoring.

Credit monitoring tracks your credit information and alerts you of any positive or negative changes. It may not prevent fraud from taking place, but an early warning can help you take appropriate action, other than when damage to your credit reputation has already been done. In this post, we will tell you all about credit monitoring and how it works.

What is credit monitoring?

Credit monitoring watches your credit files and alerts you to changes such as new accounts opened in your name or major retail purchases such as a car, among others. Borrower behaviour is also a critical element that is tracked by credit monitoring tools, which is crucial in detecting and flagging fraud immediately it happens. For instance, if you lose your credit card, a good credit monitoring system should detect a difference in purchasing patterns and inform you. There are many credit monitoring tools in Canada, and each offers a diverse range of features. The choice is personal and depends on your financial needs.

How does credit monitoring work?

A credit monitoring service tracks your credit reports and scores. The best credit monitoring services should help keep tabs on your credit scores in addition to monitoring your consumer information. This allows you to take steps to ensure you maintain a healthy score. Most consumers use credit monitoring to ensure they don't fall victim to identity theft. Thousands of Canadians are falling prey to social engineering methods employed by hackers to steal sensitive personal information. Cyberattackers use the information to open bank accounts, and apply for credit cards among other criminal activities. The sooner you learn of this theft, the easier it will be to protect yourself. Enlisting credit monitoring services puts you a step ahead of most people. Whenever changes in your credit report occur, you will be the first to know if they are not genuine. You can therefore repair any damage sooner rather than later. If you are a victim of identity theft and need quick cash, consider an online pay day lender.

Importance of credit monitoring è

Credit monitoring gives you peace of mind knowing that you will receive an alert immediately if a fraudulent activity takes place. In addition, credit monitoring offers convenience as you don't need to check credit reports manually. You will receive alerts via mobile or email notification. Some other benefits of credit monitoring include:

Assess your credit score

Every time you apply for credit, you are unsure of your credit score and wait for the lender to run a check. With bad credit, you may suffer rejection, or the interest may be very high. However, credit monitoring ensures the report is not a surprise.

In addition, your credit score may also affect the premiums you pay on car insurance. Hence, it is very crucial to have this information on hand regularly. It can also help you improve your credit score, benefitting your financial life by knowing the factors contributing to a poor score. Managing all aspects of your finances, including debt, becomes easier when you have this information.

Find credit report errors and make corrections

The best credit monitoring tools always flag negative information that may affect your credit score. Once you go through this information and verify it, you can easily dispute it. Some paid credit monitoring services even help with dispute resolution.

You may be surprised at how many times errors occur on credit card reports. Credit surveillance is beneficial to help catch these errors early on before they affect your credit score.

Protect against identity theft

The most common form of identity theft involves the misuse of existing accounts. Checking your monthly statements can help you catch such illegalities. Look for higher balances than you know you should have. Credit monitoring services serve as additional protection.

The other prevalent form of identity fraud occurs when a new account is opened in your name. Without your knowledge, these accounts can run thousands of dollars in debt. You only get to know of their existence either when debt collectors start sending you notifications or when you apply for credit. Credit monitoring alerts you every time you or someone else opens a new account.

When identity theft occurs, you are left with options to access loans such as instant payday loans, which are more flexible than traditional loans.

What is a credit monitoring service

Credit monitoring companies offer tracking services of your financial information for a monthly fee. The consumer fills out a user profile and signs up for notifications. Whenever any activity happens on your credit report, you will receive a notification. You can then determine if it is a fraudulent transaction that needs to be removed or reported.

How does a credit monitoring service work?

The first step is to create a user profile. Here you will need to give out the necessary personal information such as an address, social security number, date of birth, among others. Once all this information is verified, you then need to create a password-protected account. After that, you update and give the credit monitoring service permission to track your financial information and send you notifications. Depending on your needs, some companies track all credit bureaus while others track one.

How to choose a credit monitoring service

There are many credit monitoring companies in Canada, including the credit bureaus. Before you settle on any of them, here are a few factors you should consider.

Features: Most paid credit monitoring services have features that are sometimes nice, but add no value. Remember, they impact the price, so if you choose one with extra features, make sure they are useful.

Legitimacy: Often, people hide behind fake credit monitoring companies to steal your information. So, before choosing a company, find out the kind of reviews it has. How long has it been operating? Better to err on the side of caution when it comes to this. A known company may be a safer bet.

Cost: Sometimes, the price may be high due to extra features. Take time and ask yourself if you really need them. Also, a more expensive product does not necessarily mean it will be more effective.

Customer service: Every credit monitoring company needs to have good customer service. This will especially come in handy when you run into problems. Credible companies invest in their customer service. You should also confirm their cancellation policy, as some make it extremely difficult when you want to quit.

Should I pay for credit monitoring?

Credit monitoring services can either be free or acquired at a fee. If your budget is limited, you may opt for the free tools, but they only offer basic services. You should also be wary, as some of them want something else in exchange for the free services. On the other hand, the cost of paid credit monitoring services offers a wide range of features.

Free credit monitoring services

Free tools give basic services, but some, like Credit Karma, provide you with information on your loan approval odds. This helps you find financing easily. Their comprehensive report also shows which factors are decreasing your score.

Paid credit monitoring services

They offer various features, such as a credit score simulator which helps you see how specific actions will affect your credit score. In addition, they flag any information in the credit report that needs your attention. But remember to evaluate the features to know if you need them, as not all apply in every situation.

How to avoid fake credit monitoring services

While there are many legitimate companies, shady people hide behind fake credit monitoring services intending to steal sensitive personal information. Carrying out due diligence is mandatory before signing up with any company. Watch out for blatant signs like misspelled words or deals that sound too good to be true. Also, if your gut feeling is warning you against signing up, don't.


Credit monitoring is the tracking of financial information to detect potential fraud. While it does not stop fraud from happening, it gives you the chance to act fast before severe damage to your financial reputation occurs. Additionally, a good credit monitoring service should flag any suspicious activity and give you an early warning. The company should also provide you with access to your credit score, which is crucial for most transactions in today's world.

That said, a credit monitoring service is crucial in minimizing the damage caused by identity theft to your financial reputation. Remember, when choosing a credit monitoring service, carry out due diligence and take your time to avoid fake companies.

If you need a loan even with a poor credit score, do not hesitate to get in touch with us today. We consider much more than just your score.