I take some time every year to pull a free credit report from AnnualCreditReport.com to make sure my finances are in order and there aren't any delinquent accounts in my file that shouldn't be there. I also pay a small fee to check out my credit score as a way to negotiate with my creditors — credit card companies may be willing to lower the annual percentage rates on your credit cards if you can demonstrate how financially responsible you are. Similarly, I've also used my credit score to land an apartment because it shows I would be the sort of tenant that would pay my rent on time.

But there are ways to monitor your credit without having to pay a single dime.

Credit Karma, is one of those companies, according to a story on Life Inc., which offers to check your TransUnion credit file once a day and notify you of any major changes occurring in your file, like a credit inquiry or late payment.

Credit Karma and a site called Credit Sesame can also provide you with a credit score similar to a FICO score, which will help you get a picture of how well you're doing. But if you want to use your credit score to negotiate your credit card interest rates, it's a good idea to buy your FICO score because it's the standard score lenders use.

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