This post comes courtesy of our friends at Credit Sesame. Credit Sesame is the best way to see your free monthly credit score and find out how you can save on your credit, loans and mortgage. Using a proprietary algorithm, only Credit Sesame shows you the best ways that you can stop overpaying on your credit and loans and start saving!

From your credit score to getting approved for a loan, the information that shows up on your credit report can dramatically impact your financial and personal life. If you really want to better manage your finances, you should seriously consider a credit monitoring service. And while these services used to be an extra expense, these days you can find many sites that will help you monitor your credit—for free!

With the New Year quickly approaching, we’re all making resolutions to make better financial decisions come 2013. Consider making yours “Monitor my credit on a regular basis!”

Why? Take a look at why monitoring your credit is a must!

1. It provides you with peace of mind. You’ll know exactly where your credit stands and what information is being reported to the credit bureau.

2. It can help you detect and limit the damage of identity theft .  If you get a credit alert for a new account you don’t recognize or your balance suddenly changes on a credit card you didn’t spend any money on this month, you know that it is likely fraudulent activity. Because you have credit monitoring, you’ve detected the problem sooner than you may have normally and can limit the damage by putting a freeze on your credit files and take the appropriate steps to block access to that new account they opened.

3. The estimated number of people who have could have mistakes in their credit report varies widely (one study, conducted by the Policy and Economic Research Council, found potential errors in 19.2 percent of credit reports examined while a study by CBS found that 4 in 5 credit reports have errors). By monitoring your credit, you may notice a potential mistake more quickly and can take steps to fix the issue. A small mistake can end up costing you thousands of dollars in extra interest costs on your loans.

4. Despite all its benefits, most experts agree that credit monitoring services can be too expensive and a waste of money. Services charge anywhere from $10-$30 per month for credit monitoring, with the average fee coming in at $16.82. In fact, on average, service charge a monthly fee of $16.82 for credit monitoring (based on the average cost of the providers listed on Next Advisor 11/2012), which totals approximately $200 per year.  That average fee equates to roughly $200* per year, but Credit Sesame recently unveiled credit monitoring for free.  Now you can enjoy the benefits of free credit monitoring without the cost.