Credit Protection

Credit Protection Plans Can Protect Your Identity

Identity theft can have disastrous effects on a person’s life. If a thief is able to damage your credit score, you may feel the effects for years to come. Your credit score is the way that many people, from landlords to insurance companies, determine how responsible you are. People with bad credit pay more for car insurance, don’t qualify for as many loans, may not be approved for apartments and could even be passed over for a job.

Don’t let identity thieves ruin your credit. Instead, utilize a credit protection plan that will monitor your credit and alert you to any suspicious activity. By catching the problem quickly, you can ensure that your credit doesn’t get damaged without your knowledge. The faster you can dispute a fraudulent charge or suspicious activity, the easier it will be to protect your credit.

What Does a Credit Protection Plan Offer?

At its most basic, any credit protection plan will monitor your credit. If any sudden changes occur, the plan-holder will be notified by mail, email, text message or some other way. This allows an individual to act quickly any time possible identity theft occurs.

Additionally, most plans provide people with a way to report suspicious activity or fraudulent charges as they occur so that the credit card or other account can be frozen. In order to remove the freeze on the account, the credit company must contact the cardholder to verify that a charge was made.

If a credit protection plan offers resolution services, this means that the company will provide the consumer with the necessary paperwork to follow up on the fraud and try to recover the money charged or reverse the damage to the credit score. In this situation, the protection plan only provides the necessary paperwork and guidance; the consumer must do all of the legwork, including making phone calls or appearing in court.

If, on the other hand, a protection plan offers a restoration plan, the company will provide an agent who can do the majority of the investigative work for you. This requires the policyholder to sign over a limited power of attorney to the agent, and these plans are usually more expensive. Nevertheless, many people find the peace of mind that this type of plan offers to be well worth the price.

Where Do I Buy a Credit Protection Plan?

Numerous companies now offer credit protection services. Many credit card companies offer services for a specific card. If you want a service that covers all of your credit, you may need to buy a policy from a company specializing in credit monitoring and protection, such as Lifelock. Many banks also offer this service.

You may also be able to obtain identity protection insurance from the same company as your auto or home insurance. These policies are usually very affordable and may result in a discount on your other insurance premiums whenever you purchase it. It’s definitely worth asking your insurance company if this type of program is available.

Please note that no matter what type of protection plan you have, you can still fall victim to identity theft. It’s important to always safeguard your identity whether or not you have insurance. The purpose of a credit protection plan is to mitigate the damage to your credit score after identity theft happens.