Which statement regarding credit monitoring is correct?

The correct statement regarding credit monitoring is that the three major credit reporting agencies are TransUnion, Equifax, and Experian. These three agencies are responsible for collecting and maintaining credit information on consumers, which is used to generate credit reports and scores. Understanding these agencies is essential for anyone interested in monitoring their credit, as they provide different types of credit products and reports that consumers can access to track their financial health and identity.

Being aware of the major credit reporting agencies is fundamental in the context of credit monitoring, as it allows individuals to know where to look for their credit information and how to dispute inaccuracies if they arise. The services offered by these agencies include credit monitoring, which can alert individuals to significant changes in their credit reports, helping to mitigate the risk of identity theft or credit fraud.

Other statements misrepresent the facts surrounding credit monitoring and reporting services. For instance, soft inquiries do not impact your credit score, and while it is beneficial to know your FICO score, ordering it from each agency may not be necessary for everyone, depending on their monitoring needs. Additionally, while credit monitoring can be offered for free by some services, many reputable and comprehensive monitoring services typically require a subscription for their complete offerings.