Three-Bureau Credit Monitoring
What Is 3-Bureau Credit Monitoring?
Three-bureau credit monitoring tracks changes on your credit report at all three major credit reporting bureaus—Equifax, Experian, and TransUnion. The other option is to employ a credit monitoring service that only tracks changes at one credit bureau. The advantage of choosing a 3-bureau credit monitoring service is a closer watch on your credit report, since one-bureau tracking can leave out changes taking place at the other two bureaus. Also, errors can be found easier and corrected earlier. Many consumers prefer to use 3-bureau credit monitoring for the additional security it provides against fraud and identity theft.
The Advantages of 3-Bureau Credit Monitoring
Although companies can vary in their offerings for credit monitoring services, 3-bureau credit monitoring usually includes the following:
- Daily or weekly checks on your credit report and score for changes
- Detailed information on all of your credit card accounts
- Detailed information on all your loans
- A complete report of your payment history
- Information on all companies that have viewed your credit report
- A line-by-line comparison of the information on each credit report from the three credit reporting agencies
- Immediate alerts by email or phone regarding any changes to your credit report
- An advantage in applying for a new loan
The Difference Between 3-Bureau and Single-Bureau Credit Monitoring
As the three major credit reporting bureaus operate independently of each other, they do not share their credit report information routinely. Personal and financial information on your credit report can differ from one bureau to the other, as well as the credit score. Employing one-bureau credit monitoring leaves you unaware of changes taking place at the other two bureaus. Except in the case of placing a fraud alert on your file at one agency, then that agency is required to contact the other two, who must also place fraud alerts on your credit report.
If a 3-bureau credit monitoring service is being used, tracking will include all your credit report information at each bureau. In addition, since some studies have found that 80 percent of credit reports contain some type of error, these errors can be easily spotted and corrected with 3-bureau credit monitoring.
Evaluating a 3-Bureau Credit Monitoring Service
The first consideration is to choose a monitoring service that matches your needs. As different services monitor at different times, you may need to choose one with more frequent monitoring if you have many credit accounts or have been a victim of identity theft. Identity theft victims need more frequent monitoring, since their financial information may have traveled far and wide on the Internet. If you run a small business without a full-scale accounting team, you may find it helpful to have 3-bureau credit monitoring for the comprehensive nature of the credit reports.
Other advantages to 3-bureau credit monitoring include:
- Unlimited access to your credit reports and credit scores
- Preference to a certain type of customer support—such as emails or phone calls
- Identity theft insurance coverage
Three-bureau credit monitoring will give you the whole picture of all facets of your credit report and movements in your credit score, while presenting the information in a clear and easy-to-understand format. Most importantly, it will immediately notified you of any changes, so that you are alerted at the earliest moment of possible identity theft.
References:
- Chicago Sun-Times, 80 Percent of Credit Reports Contain Errors, February 19, 2011,
http://www.suntimes.com/business/3355076-420/credit-nolan-reports-report-financial.html