Credit Monitoring: Advantages and Disadvantages

Credit monitoring is an act that many individuals regularly engage in, in order to improve their credit scores. Here are some of the advantages and disadvantages of credit monitoring.


One of the big advantages of credit monitoring is that you can help prevent identity theft. By looking at your credit reports, you are going to be able to tell if someone is trying to access your credit. If you see accounts that are open that you did not have anything to do with, you know that someone else is opening them.

Another good reason to monitor your credit is so that you can tell if the financial actions you are taking are hurting or helping your credit score.


When you are monitoring your credit, one of the disadvantages of this process is that it is going to be costly. You are entitled to one free credit report from each of the three major credit bureaus every year, but you are going have to pay for the credit reports beyond that. This process can be very expensive if you do it frequently enough.

Another potential disadvantage is that you are going to over-analyze everything in your credit report. You will spend too much time trying to make small tweaks that may not actually be doing any good.