As I’m sure you already know, the Equifax settlement has been finalized and the victims affected by the data breach can make a claim for $125 or receive free credit monitoring for ten years. Like any situation with “free” money, though, it’s more complex than a this-or-that decision.

If you check your eligibility and discover you may have a claim, your first instinct might be to jump on that instant gratification – but there’s a catch. There’s a $31 million cap on the compensation money, which, according to the math, it would only take a little less than 250,000 claims of $125 to use up the $31 million. If it reaches that cap, which it more than likely will, that chunk of change will continue to be adjusted to ensure everyone gets an equal share. In the case all 147 million people affected by the breach applied for the claim, it would come out to around 17 cents per person. Of course, it’s unlikely all 147 million people will file for a claim and choose the cash, but it’s still probable it’ll come out to less than a decent meal at a restaurant.

So, then, what about the credit monitoring? While the value may not be immediately apparent, opting for the free credit monitoring service is a handy tool in preventing identity theft from happening. What’s better about Equifax monitoring compared to other free services like Credit Karma is it monitors all three credit reporting institutions rather than only two. The other major benefit, along with the ten years of free monitoring, is that you would get up to $1 million in identity theft protection. Regularly, this service would be $20 a month.

However, there are drawbacks to choosing credit monitoring as well. If you aim to stick it to Equifax, going for the credit monitoring option will drive up Equifax’s allocated costs only if 7 million people choose it. Ultimately, then, taking the money guarantees that Equifax will have to pay out in full, though you won’t be getting $125 and it probably will take a few years to get to you.

Keep in mind that if you choose to settle, this means you’re giving up your right to legal action. So, if you’re a victim of identity theft in the future, you can’t sue Equifax if you settle. Hopefully, this has made you better informed of the pros and cons of both options. This situation should be taken as a teaching moment for people to be careful and keep a close eye on your credit. It’s too easy to let it fall by the wayside, and this could end up impacting your credit score in a big way which can lead to not being able to qualify for something like a home loan.

For more details, you can visit the Fair Trade Commission’s website which gives a full outline of the actions available to you.

What You Don't Know about the Equifax Settlement