Give this credit monitor strategy a look

A class-action settlement of a multibillion-dollar lawsuit against credit bureau giant TransUnion could result in credit monitoring benefits to as many as 190 million consumers.

But consumer experts caution that those benefits may, in the end, prove to be more useful to some consumers than to others. And could result in as much or more gain for TransUnion.

Even so, there is enough substance to the deal that consumers with access to the Internet should check it out when the settlement Web site, www. listclassaction.com, goes online June 16.

“TransUnion is committed to providing consumers with tools and services that empower them to manage their own credit health,” said Colleen Ryan, a TransUnion spokeswoman. “The services offered through this settlement complement our many consumer empowering initiatives.”

The settlement, which still must be approved by a federal judge, covers any consumer who from Jan. 1, 1987, to May 28, 2008, opened a credit account or a line of credit — and that covers just about everything, from credit cards to car loans to home mortgages to student loans.

As part of the settlement, TransUnion agreed to pay $75 million — which translates to less than 40 cents paid to all the consumers who may be entitled to a share.

The biggest benefit is a free credit and monitoring service that allows consumers unlimited daily access to their credit report and credit score. Consumers can sign up for a six-month plan (a $59.75 value) or a nine-month plan, which includes insurance scores (a $115.50 value).

Monitoring your credit history often is a good way to guard against identity theft and also to keep track of what your creditors are saying about you. Knowing your credit score is a plus because this three-digit numeral is the first thing lenders look at when deciding whether to lend you money and what interest rate to charge.

So, getting free monitoring is nothing to sneeze at. Still, the benefits are in the eye of the beholder.

First of all, these credit monitoring services you see advertised on the Internet and on TV are overhyped.

They really hold merit only for consumers who are in the market for a mortgage or other big loan, who have reason to fear they may be a victim of identity theft or who don’t want to bother monitoring their credit themselves.

Fact is, there are a number of free ways already to monitor your credit from time to time.

First, you have a right to one free credit report each year from each of the big three credit bureaus: TransUnion, Equifax and Experian. In addition, if you lose your wallet or your credit card, you can have a fraud alert posted on your account at each bureau every 90 days.

As a result, you can conceivably have 15 different ways to keep tabs on your credit over the course of a year — for free.

“We don’t think monitoring services are all that great for most consumers,” said Paul Stephens, director of policy and advocacy at the Privacy Rights Clearing House. “There are other ways to monitor your credit without paying. Besides, the monitoring offered here only pertains to TransUnion.”

Even so, Ryan said the deal TransUnion is offering consumers not only is free, but also offers consumers a chance to look at their credit report whenever they want, any time of day. Consumers would be alerted by e-mail of any significant changes in their files, whether it is an account opened in their name or a late payment.

In addition, she said, the service provides a good “hands-on” introduction to many consumers who may not have experience with monitoring their credit report or credit score.

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