Everywhere you go, it seems like you’re being pushed to sign up for a “Free Credit Report” Service or a free “Credit Monitoring” Service from your bank, your credit card company, even your local supermarket - I know for sure Wal-Mart offers it as a service.

Now most of the companies offer this service because it’s not really free - after a month they charge you anywhere from $12 - $30 a month for the privilege. That’s why they offer the service - to make money!

But why should you, as a consumer, get a free credit report or a monitoring service? Is it really worth it to pay for a credit monitoring service?

The answer, in a nutshell, is yes. Here’s why:

Protect Yourself from Identity Theft and Fraud

By periodically checking your credit report, you can see if a bank or credit card company has tried to access your credit. How does this help against identity fraud, you ask? Simple - you know what credit you’ve applied for, and if something fishy comes up (such as a slew of applications all at once, or applications you can’t ever remember making) you’ll be able to stop identity fraud in it’s tracks.

Know Your Chances before applying

By viewing your credit report before you apply for a new mortgage, home equity loan, or any other type of credit, you’ll be able to see exactly what lenders see - you’ll know your odds of getting approved before even applying

Clean up your Credit

Just by viewing your credit report, you can see which information is correct or incorrect, and then take corrective action on your credit report.