Credit monitoring: May i recommend it....

[prettyobk]

I am just about 7 months out of chapter 7 BK and I have been monitoring my credit reports very closely for the last several months.

I have seen my scores fluctuate a bit, but mostly they have gone up thanks to numerous disputes and concerns initiated by me.

Currently I have two tools I used (and I am not an employee or affiliate of any of the two companies I am about to mention). The first tool is IdentityGuard.com. I get alerts and emails when there is any activity from any of the 3 credit bureaus immediately via email. This has helped me correct things right away, whereas before I simply never bothered to review my report until something went wrong.

IG also does quarterly credit score updates and most of the services they offer are under $15 a month and worth every penny.

The second tool I use is the Credit Doctor software that contains various tools/tips for improving your credit scores and cleaning up your reports. It has great form letters and does most of the work for you. It's almost as easy as typing your name. I paid about $30 for it for 3 account users.

The best thing I can tell anyone out of BK is too clean up your report as soon as you can. Check addresses, duplicate accounts, balances, incorrect info and get it changed as soon as you can. This has helped me a lot!!!

ALSO: Have inquiries older than 2 years removed by writing a form letter with the dates to all of the bureaus.

-Compare each report and see what accounts are missing/incorrect.

[Fallonedward]

This is some good information, thanks

I am just about 7 months out of chapter 7 BK and I have been monitoring my credit reports very closely for the last several months.

I have seen my scores fluctuate a bit, but mostly they have gone up thanks to numerous disputes and concerns initiated by me.

Currently I have two tools I used (and I am not an employee or affiliate of any of the two companies I am about to mention). The first tool is IdentityGuard.com. I get alerts and emails when there is any activity from any of the 3 credit bureaus immediately via email. This has helped me correct things right away, whereas before I simply never bothered to review my report until something went wrong.

IG also does quarterly credit score updates and most of the services they offer are under $15 a month and worth every penny.

The second tool I use is the Credit Doctor software that contains various tools/tips for improving your credit scores and cleaning up your reports. It has great form letters and does most of the work for you. It's almost as easy as typing your name. I paid about $30 for it for 3 account users.

The best thing I can tell anyone out of BK is too clean up your report as soon as you can. Check addresses, duplicate accounts, balances, incorrect info and get it changed as soon as you can. This has helped me a lot!!!

ALSO: Have inquiries older than 2 years removed by writing a form letter with the dates to all of the bureaus.

-Compare each report and see what accounts are missing/incorrect.

[SubPrimeME]

couldn't agree more! I use myfico score watch, my score is up 100 points in the few months I have been cleaning it up.

[backtoschool]

I use myfico score watch. I get a text message and an email any time there is a change in my score or a change in my credit report. One of my cards have changed my status to a recent charge off even though I am discharged for over a year. This dropped my score over twenty points. Having the scorewatch service allows me to be aware that that has happened and I was able to dispute the change right away. Sometimes negatives creep back and sometimes accounts start reporting incorrectly for some reason, and having monitoring allows me to fix the problem quickly.

[Nicollette]

I use myfico score watch. I get a text message and an email any time there is a change in my score or a change in my credit report. One of my cards have changed my status to a recent charge off even though I am discharged for over a year. This dropped my score over twenty points. Having the scorewatch service allows me to be aware that that has happened and I was able to dispute the change right away. Sometimes negatives creep back and sometimes accounts start reporting incorrectly for some reason, and having monitoring allows me to fix the problem quickly.

How much does the myfico score watch cost?

[stillstandin]

Thanks for this info Prettyobk. I have not posted in awhile, but my chapter 7 was discharged a couple of months ago. I want to start repairing credit, but honestly, I'm still in the " I can't climb this mountain just yet" mode right now. How long after discharge did you wait to start monitoring your credit reports? Have you applied for new credit? It seems like I have to start this process soon, but I'm stalling, I guess--sort of basking in the joy of the absence of CC bills coming through the mail slot at the moment and tearing up credit card offers for us newly bankrupt souls. Before the BK, my CRs wore shiny halos. Now, I'm just plain scared to look. My credit union tells me that my general scores went from the high 700's to between 600 and 650 (credit grade--no specific number, but a free service and score # range). I have not had the balls to question it further. How did you spring into action?

[HHM]

These services are pointless wastes of money, especially the credit score monitoring services. I am sorry, but it really is not that important, credit takes care of itself. Paying to monitor it is like paying someone to take your pulse to make sure you are alive.

[backtoschool]

I respectfully disagree HHM. Credit does not repair itself. I have had to dispute items over and over to get them to report correctly, and sometimes, as mentioned above in my earlier post, the items start reporting incorrectly again.

If one has no need for a fico score, then perhaps credit takes care of itself. But I have short term and mid term goals that require that my fico score be over a certain number. (ie I want to buy a house in a year). Rather than scrambling to fix things at the last minute, or wringing my hands and hoping that my credit has "repaired itself" when I go to apply for a mortgage next year, I prefer a more proactive approach towards my financial future. I want to look at homes knowing what my score is. Monitoring changes in my score and then proactively repairing any errors that come up, allows me to be prepared when I go mortgage hunting.

I use myFico ScoreWatch and it is only $100 for an entire year of monitoring, including getting a new score when ever there is a change in the report. I do not see that as a rip off.

[Fallonedward]

I'm going to sign up for this service right after I get discharged. Hopefully that should be in March of next year. Until then I figure there is nothing I can do till then beside bask in my fresh start accounting.

I respectfully disagree HHM. Credit does not repair itself. I have had to dispute items over and over to get them to report correctly, and sometimes, as mentioned above in my earlier post, the items start reporting incorrectly again.

If one has no need for a fico score, then perhaps credit takes care of itself. But I have short term and mid term goals that require that my fico score be over a certain number. (ie I want to buy a house in a year). Rather than scrambling to fix things at the last minute, or wringing my hands and hoping that my credit has "repaired itself" when I go to apply for a mortgage next year, I prefer a more proactive approach towards my financial future. I want to look at homes knowing what my score is. Monitoring changes in my score and then proactively repairing any errors that come up, allows me to be prepared when I go mortgage hunting.

I use myFico ScoreWatch and it is only $100 for an entire year of monitoring, including getting a new score when ever there is a change in the report. I do not see that as a rip off.

[HHM]

I am not saying ignore your credit, but I believe that credit "score" monitoring is a waste of money.

There are 3 keys to post BK credit recovery.
1. Make sure all accounts are being reported properly
2. Re-establish some credit usage
3. The natural passage of time

To accomplish any of those tasks DOES NOT require wasting money on credit score or credit monitoring service. Credit score monitoring is a vanity service for those that have their priorities out of whack (sorry to say).

Don't get me wrong, I totally understand the allure, the credit score is simple, tangible, and brings immediate gratification (but so does crack cocaine). Regardless of your future goals, paying $130 a year, or whatever amount, to monitor something that you largely have little control over and that you can accomplish the same results for free seems like a waste of money to me.

[backtoschool]

I am not saying ignore your credit, but I believe that credit "score" monitoring is a waste of money.

There are 3 keys to post BK credit recovery.
1. Make sure all accounts are being reported properly
2. Re-establish some credit usage
3. The natural passage of time

To accomplish any of those tasks DOES NOT require wasting money on credit score or credit monitoring service. Credit score monitoring is a vanity service for those that have their priorities out of whack (sorry to say).

Don't get me wrong, I totally understand the allure, the credit score is simple, tangible, and brings immediate gratification (but so does crack cocaine). Regardless of your future goals, paying $130 a year, or whatever amount, to monitor something that you largely have little control over and that you can accomplish the same results for free seems like a waste of money to me.

I don't think the Betty Ford Clinic has established a fico score program yet, but I will check with them later.

I like knowing where I stand regarding my fico score, so spending the money on monitoring is not a waste to me but to each his own.

Anything spent with disposable income that is not an absolute necessity could be seen as a "vanity" purchase. I suppose I can go hide in the hills with my survivalist gear and my canned rations, and not "waste" any money on vanity purchases, but I prefer a more comfortable life, and buying a home is part of that comfort. Knowing my score will help me in planning on purchasing a home.

[Amy26]

I am not saying ignore your credit, but I believe that credit "score" monitoring is a waste of money.

There are 3 keys to post BK credit recovery.
1. Make sure all accounts are being reported properly
2. Re-establish some credit usage
3. The natural passage of time

To accomplish any of those tasks DOES NOT require wasting money on credit score or credit monitoring service. Credit score monitoring is a vanity service for those that have their priorities out of whack (sorry to say).

Don't get me wrong, I totally understand the allure, the credit score is simple, tangible, and brings immediate gratification (but so does crack cocaine). Regardless of your future goals, paying $130 a year, or whatever amount, to monitor something that you largely have little control over and that you can accomplish the same results for free seems like a waste of money to me.

Couldn't you just say you don't believe in credit score monitoring without throwing out insults like "vanity service" and those that do it "have their priorities out of whack". That may be your true feelings but it is just an opinion and not very appropriate to be saying things like that to people.

Credit monitoring is not a bad thing and along with credit monitoring (most of them come with score monitoring) so just because you sign up for credit monitoring doesn't mean you're oogling your credit score on purpose and all day long. Vanity is usually associated with people being hung up on themselves and thinking they are all that and a bag of chips... I really don't agree that monitoring your credit (and/or your score) could be construde as vanity.

And I have seen a lot of people that just let the passage of time try to heal their credit score and then 2-3 years after their bankruptcy they come to find that their score is still sitting in the toilet because they didn't pay more attention to it.

Other good services for monitoring are Equifax Complete which you can get right from the equifax website. There is also a product called My Privacy Matters and you can purchase a joint package that lets you monitor your score and your spouses.

[SPalin]

I agree with Amy and BacktoSchool, credit monitoring and credit scores are important if your rebuilding your credit and plan on getting a mortgage in the future. Some elect to pay cash for everything and not be part of the system and good for them including HHH! But, it does help to have a credit monitoring service to get the inaccurate items off your report and monitor to see if the reappear and many do over time, so for me $90 annually at MyFico works for me, to monitoring my credit. The free annual reports are great too, but then it is only once a year!

[dasmom]

A middle of the road approach may be to use the free annual reports, but only pull from one credit bureau every 4 months. That way you can check your credit situation 3 times a year.

I still have student loans to pay and plan to get a secured credit card after discharge. I will pay for gas on the card and pay the full balance monthly. One installment loan, and one credit card --Those will be my only credit lines. I am hoping to pay cash for a new car in 5 years. I really don't have a personal need for credit because I will not ever buy another house using a mortgage loan.

I have used my checking account debit mastercard for many years to rent cars, buy plane tickets, and reserve hotel rooms without any problems.

My child has decided not to use any credit except for Federal Student Loans, and only if there is no other way to pay for school. After seeing all that I have been through because of unemployment, illness, death in the family, and poor financial choices my child sees the benefit of living on a cash basis.

I hope everyone finds peace in their individual financial situations.

[Logan]

These services are pointless wastes of money, especially the credit score monitoring services. I am sorry, but it really is not that important, credit takes care of itself. Paying to monitor it is like paying someone to take your pulse to make sure you are alive.

I partially agree. I used identity guard for $7.95 through costco for about 8 months after my discharge. The advantage was I could pull all 3 credit bureau reports every month while I was disputing mistakes and I could monitor my FACO scores and inquiries while I obtained my 1st few credit cards out of BK. I found it useful over the first 6 months but then realized shortly after that it was just a waste of money to keep it any longer.

Now I just pull 1 credit report for free every 4 months.

Logan