Why should students get regular credit monitoring

With college tuition continuing to rise, student loans are almost a requirement for anyone pursuing a degree. Even though the rates for student loans typically don't depend on credit scores, student regular credit monitoring is essential. College students need to carefully watch their credit to make sure they are handling finances well and aren't falling victim to identity theft. By protecting credit, students can ensure they will get the best rates on loans after they graduate.

Building Credit

Since college students are typically young and don't have much credit history, it's important for them to work on building credit before they graduate. After graduation, many students will apply for car loans or home loans. To get the best rates, they will need to build up their credit during their college days. When building credit, it's very important to review your credit. Unfortunately, many people make the mistake of waiting until right before applying for a loan to check their credit. If you wait to get a credit check, you may find that there are inaccuracies on the report. It will be difficult to negotiate a loan rate under these circumstances. Even worse, you may find out that your identity has been compromised and your credit score has been affected. This can take months or even years before you recover.

When you are building credit and considering applying for a loan, you should check your credit at least six months before submitting the application. This allows you the time to make yourself creditworthy before inquiring about the loan. For students, early credit monitoring is especially important because it ensures that the information on the report will be accurate. Since students likely will open new accounts or have very young accounts, getting the credit report often is especially important to make sure everything is correct.

Protect Against Identity Theft

College students may think they are immune to identity theft because they are young and don't have big bank accounts or long credit histories. However, this naivety may make them even more susceptible. Identity thieves don't discriminate against people based on their credit scores. They just want access to money and the ability to create new accounts. If college students aren't careful with their personal information, they may become the unsuspecting victims of identity theft. If students get effective credit monitoring, they will be able to catch any signs of identity theft quickly.

Since many students have credit cards, frequent credit monitoring is especially important. Students are typically new to credit cards and may not know the importance of avoiding debt or protecting their account information. Regular credit checks will give them a better sense that they are effectively managing their new credit accounts.

How Often to Check Credit

There are three main credit bureaus that all provide credit reports. However, checking credit once a year is not enough, especially for young people who are building credit. Instead of relying on an annual credit check, students should get their credit reports several times per year. This will allow them to make sure their credit is building in the right direction. It will also allow them to better protect their identities. In addition to getting credit reports every few months, students should also closely examine their account statements to make sure there are no unauthorized transactions. A credit monitoring service is also a good idea for students. This will add an extra layer of protection as experts look over their credit and watch for any suspicious activity. College students may not always know what to look for on a credit report, and they also have many other responsibilities.

Being a student certainly isn't easy these days. With rapidly rising tuitions and mountains of student loans, young people have a lot to worry about when it comes to college. By taking advantage of frequent credit checks, students can focus more on their studies and less on worrying about whether or not they will get good loan rates when they graduate.

Joy Mali is an active blogger who is fond of writing articles on credit monitoring and educating people to monitor their monthly credit report to prevent you to be a victim of credit fraud. Follow her on Twitter to know more on credit checks for students.