What is one primary reason for individuals to monitor their credit reports?

Monitoring credit reports is essential primarily to identify identity theft and fraud. Regularly checking one’s credit report allows individuals to spot any unfamiliar accounts or inquiries that they did not authorize, which could indicate that someone is using their personal information to open fraudulent accounts. Early detection of such irregularities is crucial as it enables victims of identity theft to take timely action to mitigate potential financial damage and restore their credit standing.

While maintaining a good credit score is indeed important, one can influence their credit score through various means beyond merely monitoring their credit report. Applying for new credit cards does require credit report checks, but this is secondary to the fundamental purpose of monitoring reports for fraud detection. Tracking monthly expenses helps manage personal finances but is not directly related to the information contained in credit reports.