To distinguish the differences between LifeLock and typical credit monitoring services, we’ll begin by taking a look at what the credit monitoring services do for you. Every time you make application for credit, sign up for utility services such as electric or gas service, buy automobile insurance, and often when you submit an employment application, a copy of your credit history will be obtained from one of the credit reporting agencies. These files are maintained by the three major credit reporting agencies, Equifax, Experian, and TransUnion. There are other smaller credit reporting agencies, but the huge majority of requests for credit histories are made to one or more of those three.

Credit monitoring companies charge a monthly fee allowing you to view the information contained in your credit report files. As you may know, federal law permits you to receive copies of your credit report once every year for free. You may also get a free copy if you have been turned down for credit. It would seem prudent, however, to be able to check your report more often, in the event that erroneous information gets on your credit report, or the growing possibility of identity theft. It is a well documented fact that a majority of credit files maintained by the big three agencies contain erroneous information. With continuing credit monitoring you are more likely to catch and correct (or at least try to correct) the mistake. It’s worth noting that the most advertised and used credit monitoring services are affiliates of the big three.  (more…)