What is Credit Monitoring?

Consumer credit reporting agencies offer to "monitor" your credit for a fee. Credit monitoring services can be costly. These services cost anywhere between $43.80 per year to nearly $150.00 per year depending upon the provider. Typically, these services say they will notify you if anything unusual or suspicious appears on your consumer credit report. Don't bother with credit-monitoring services. Instead, you should monitor your own credit.
How to Monitor Your Own Credit

You can monitor your own credit and make sure that your record represents you fairly and accurately by ordering and regularly reviewing your consumer credit reports from the three major reporting agencies. You can request a report from each of the three consumer credit reporting bureaus at the same time. The advantage of reviewing the three reports at once is that you can get a complete picture of your consumer credit report history that could be reported to others. However, if you want to monitor the accuracy of your consumer credit reports throughout the year, request your report from one bureau initially, then follow up with another bureau's report four months later and the third four months after that. This is an effective way to monitor your credit at no cost.
If you find errors, no matter how small, be sure you get them fixed, and make sure that you contact all three bureaus with your change. You should receive amended reports within a week after the changes take effect.
Be sure you close long unused accounts that are listed as still active on your consumer credit report. An unused account is an opportunity for an identity thief. If you close an account ask that it be listed as "closed at the request of the consumer."
Credit counseling  is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. This process is actually more debt counseling than a function of credit education. (known in the United Kingdom as debt counselling)
Credit counseling often involves negotiating with creditors to establish a debt management plan (DMP) for a consumer. A DMP may help the debtor repay his or her debt by working out a repayment plan with the creditor. DMPs, set up by credit counselors, usually offer reduced payments, fees and interest rates to the client. Credit counselors refer to the terms dictated by the creditors to determine payments or interest reductions offered to consumers in a debt management plan.
Defns related to credit card:

Convenience--Credit cards can save you time and trouble--no searching for an ATM or keeping cash on-hand.

Record keeping--Credit card statements can help you track your expenses. Some cards even provide year-end summaries that really help out at tax time.

Low-cost loans--You can use revolving credit to save today (e.g., at a one-day sale), when available cash is a week away.

Instant cash--Cash advances are quick and convenient, putting cash in your hand when you need it.

Perks--From frequent flier miles to discounts on automobiles, there is a program out there for everyone. Many credit card companies offer incentive programs based on the amount of purchases you make.

Build positive credit--Controlled use of a credit card can help you establisPurchase protection--Most credit card companies will handle disputes for you. If a merchant won’t take back a defective product, check with your credit card company.

Balance surfing--Many credit card companies offer low introductory interest rates. These offers allow you to move balances to lower-rate cards.

Overuse--Revolving credit makes it easy to spend beyond your means.

Paperwork--You’ll need to save your receipts and check them against your statement each month. This is a good way to ensure that you haven’t been overcharged.

High-cost fees--Your purchase will suddenly become much more expensive if you carry a balance or miss a payment.

Unexpected fees--Typically, you’ll pay between 2 and 4 percent just to get the cash advance; also cash advances usually carry high interest rates.

No free lunch--The high interest rates and annual fees associated with credit cards often outweigh the benefits received. Savings offered by credit cards can often be obtained elsewhere.

Deepening your debt--Consumers are using credit more than ever before. If you charge freely, you may quickly find yourself in over your head--as your balance increases, so do your monthly minimum payments.

Homework--It's up to you to make sure you receive proper credit for incorrect or fraudulent charges.

 Teaser rates--Low introductory rates may be an attractive option, but they last only for a limited time. When the teaser rate expires, the interest rate charged on your balance can jump dramatically.