Nowadays, there are plenty of websites that offer free credit scores. Whether you’re working on repairing your credit or getting ready to apply for a loan, knowing your credit scores can be beneficial.
Credit Karma offers its members free credit score updates, credit monitoring services, and personalized advice on how to improve your credit score. It’s currently one of the most popular free credit monitoring sites on the Internet.
So, how does it stack up to other sites? And is the information truly reliable? We dug deep to find out precisely what they bring to the table and whether it’s worth taking the time to sign up. Read on for our full Credit Karma review.
How does Credit Karma work?
Credit Karma is a website and mobile app that provides users with free access to their credit score and credit report. The service is free to use and does not require a credit card or other payment information. Credit Karma provides credit scores and reports from TransUnion and Equifax.
Credit Karma also provides personalized recommendations for credit cards and loans based on the user’s credit score and other financial information. The company makes money by showing users advertisements for financial products and services.
How to Set up Credit Karma
Getting started with Credit Karma is super-easy, and it will take you only a few minutes to be up and running. When registering, you need to provide your name, Social Security number, address, and a few finance-related personal details. However, you don’t have to worry about someone stealing your personal information.
Credit Karma offers several security measures, including 128-bit encryption to keep your data safe when being transmitted. The company also explicitly states that it won’t sell your data to third parties.
You can set up two-factor authentication to request a code every time you log in from a different device. After logging in, you will access your Credit Karma dashboard, where you will see your credit summary at the top of the dashboard. The dashboard includes:
- Equifax and TransUnion scores: Your credit scores are from two of the three major credit bureaus; Equifax and TransUnion. While they are not your FICO scores since Credit Karma uses VantageScore, they give you a range where your FICO score would stand. You can also access the different types of information each bureau is receiving to determine your score.
- Factors impacting your score: Your credit score is determined by several factors, including credit inquiries, collections, bankruptcies, credit utilization ratio, payment history, and reported delinquencies. You can also see any discrepancies between your credit accounts reported to Equifax and TransUnion, which could affect your overall score.
There are also additional sections, features, and tabs with tons of helpful financial information about credit, loans, and savings.
Is Credit Karma safe?
Credit Karma prides itself on keeping your personal information safe, and part of their success in doing so is that they don’t request that much.
As mentioned above, they don’t ask for a credit card number, and you only have to enter the last four digits of your Social Security number to get started. Furthermore, even that information isn’t stored permanently. So, there’s no risk of someone hacking in and stealing part of your Social Security number.
Credit Karma doesn’t sell or rent your information to any third parties, including your contact information and your credit information. In addition, your information is safe on the website because they use encryption services to protect online users.
Credit Karma Complaints
Credit Karma’s BBB rating is currently a B+ partially due to the 330+ complaints filed within the last three years. However, with more than 100 million members, that’s quite a drop in the bucket, and the company works to resolve all complaints.
The Better Business Bureau also cites a slow response time to complaints as part of the reason behind their rating. Still, a B+ is an improvement over the last couple of years. It demonstrates that they’re taking clear steps to improve their customer service.
The FTC also sued Credit Karma in 2014 for security risks in its mobile app, but they have addressed those issues.
Who runs Credit Karma?
Credit Karma was founded in 2007 by Kenneth Lin, Nichole Mustard, and Ryan Marciano. It has grown to a multinational company with over 100 million users. In December 2020, Intuit, which runs TurboTax, finalized the acquisition of Credit Karma in an $8.1 billion valued deal, including cash and stock.
Currently, Kenneth Lin is the chief executive officer, Ryan Marciano is the chief technology officer, and Mustard is the chief revenue officer.
How does Credit Karma make money?
Credit Karma makes money by offering promotions and financial services to its members from partner companies.
For example, if you apply for one of the “personalized credit card offers” using their link, they’ll get a kickback from that credit card company. So, while you can easily opt out of emails at sign-up, you’ll still get offers when you visit the website.
Some recommended credit cards Credit Karma offers include:
- Balance transfer credit cards
- Cashback credit cards
- 0% and low-interest credit cards
- Rewards credit cards
- Travel credit cards
- Hotel credit cards
Each credit card recommended on their “best credit cards” list is based on your credit profile.
What You Get with a Credit Karma Account
Credit Karma helps break down and analyze your credit information to improve your financial decisions. Here’s what you receive with a membership:
Free Credit Scores and Reports
- VantageScore 3.0: Get credit scores from TransUnion and Equifax.
- Credit Monitoring: Receive alerts for changes to your credit report.
- Credit Report Card: Identify weak areas to improve your credit score.
- Credit Score Simulator: Simulate how financial actions (like opening a credit card or paying off a loan) might affect your score.
Additional Features
- TransUnion and Equifax Reports: Weekly credit report updates.
- Personalized Recommendations: Tailored credit card and loan offers based on your credit profile.
Credit Karma Money
- Checking Account (Credit Karma Spend): No fees, no minimums, and access to over 55,000 free ATMs. FDIC insured up to $5 million, and you can get your paycheck two days early with direct deposit.
- Savings Account (Credit Karma Save): A free high-yield savings account with a competitive APY and no minimum balance requirements.
Unclaimed Money Search
Credit Karma offers a free search feature to see if any unclaimed money is owed to you. When companies can’t reach you, they must turn over the money to the state. Credit Karma helps you find if you’re eligible to claim any funds.
Free Tax Filing (Cash App Taxes)
Credit Karma provides a free tax return service, now part of Cash App. It’s similar to TurboTax and H&R Block, with a maximum refund guarantee, and both federal and state filings are free.
Mobile Support
Credit Karma offers a seamless experience on its Android and iOS apps, allowing access to features like the Credit Score Simulator, debt repayment calculator, and more. Push notifications alert you to changes in your credit profile.
Customer Service
If you need assistance, you can reach Credit Karma’s customer service online, either via their secure messaging service or by emailing them directly through your registered account email.
See also:Top 5 Credit Monitoring Services of 2025
Is Credit Karma free?
Credit Karma is indeed completely free, and the company claims that it will remain so indefinitely. That’s great news for users, but it’s still wise to be cautious when browsing the website.
It might be tempting to take out a loan or get a new credit card that you might not otherwise consider when you see all the various financing offers available to you.
Perhaps it’s a positive thing for some people; after all, everyone needs some form of financing at some point in their lives. Or maybe your credit has improved, and you are eligible to refinance a current loan at a better interest rate and save some serious cash.
Why is Credit Karma free?
One minor complaint from some users is that the dashboard has too many ads and offers from third parties—perhaps too many for some.
It is through these ads and offers that Credit Karma is able to offer perks such as free credit scores. However, you shouldn’t take out a credit card or loan that you don’t need just because they offer you what seems like a good deal.
Because Credit Karma has access to so much of your personal and financial information, they can make highly targeted individualized offers to each member.
Be sure to use your judgment wisely before committing to any product Credit Karma offers you. But hopefully, if you’re using Credit Karma, you’re already determined to manage your credit responsibly so you can achieve all of your financial goals.
Is Credit Karma accurate?
The free credit scores you receive from Credit Karma come straight from TransUnion and Equifax, two of the three credit bureaus. It is not your FICO score, the scoring model used by most lenders and financial institutions.
If you’re interested in getting your FICO scores for free, check out our article, 13 Credit Cards Offering Free Credit Scores. Some credit card companies don’t even require you to be a customer to access your FICO score.
VantageScore
While VantageScore 3.0 was created by all three major credit bureaus, it’s still not as popular as the FICO model. When it comes time to apply for a loan, your FICO score may be quite different from the credit score you’ve been tracking through Credit Karma.
There’s no way to tell how big the difference may be; in fact, member reports greatly vary. Some Credit Karma members claim that their Credit Karma scores are much lower than their FICO scores. It leads them to wonder if the website purposefully reports lower credit scores to keep them coming back.
Other people are disappointed when they find out that their FICO score is lower, and they don’t qualify for as competitive interest rates as they had hoped.
Still, others say their FICO and Credit Karma scores had negligible differences. It seems like personal experiences can vary widely, so it’s best to take your personal information with a grain of salt.
Does checking your credit score on credit karma lower it?
No. Checking your credit score on Credit Karma doesn’t hurt your credit. When you request a credit report from Credit Karma, they perform a soft inquiry on your credit report, which isn’t reflected on your report. Only applying for a loan or other new credit will result in hard pulls.
Should I use Credit Karma?
Credit Karma is an ideal option if you want to keep an eye on your credit regularly. In addition, it’s beneficial when you want to repair or build your credit. Your credit score is critical to your financial health, and it’s essential to know when it changes.
Credit Karma allows users to check and track their credit score for free, unlike other services that charge $15 to $20. Additionally, you can trust Credit Karma to safeguard your sensitive data as it has strong site security.
Using Credit Karma doesn’t affect your score because it performs a soft inquiry on your credit report, which will not be reflected on the report. However, most services will make a hard inquiry on your credit report, which will likely knock off a few points on your credit score.
What services does Credit Karma provide?
Credit Karma provides free credit scores, credit monitoring, and insights to help you take control of your credit. It alerts you to important changes to your credit reports and offers recommendations and tips to help you manage your credit wisely and improve your credit. Other helpful services Credit Karma provides include:
- A graph depicting your credit score over time
- A credit report card showing how debt utilization and payment history affects your credit score
- How your credit score compares to others by income, age, and state
- Tools to simulate how applying for a new credit card or paying debt affects your score
- Free credit report with weekly updates
What credit bureau does credit karma use?
Credit Karma uses your credit information from TransUnion and Equifax to show your credit rating. And while you can get free credit reports from annualcreditreport.com, you are limited to receiving the updates once every 12 months. With Credit Karma, you can access free TransUnion and Equifax credit reports and get updates weekly.
However, it’s not uncommon for the scores to be different. This is because not all your lenders report your credit history to all the three major credit bureaus. On the “Overview Menu”, under the “Score Details” section, you can toggle between Equifax and TransUnion to see factors that have the most and least effect on your credit.
See also: Credit Karma Alternatives
Bottom Line
Credit Karma is a useful tool for tracking and analyzing your credit scores, especially when preparing for a loan. However, it’s wise to compare offers from multiple lenders to ensure you’re getting the best deal.
While most lenders use FICO scores rather than the VantageScore 3.0 from Credit Karma, it still provides valuable insights. Credit Karma offers free, real-time updates and personalized tips to help improve your credit score, though you shouldn’t rely solely on it for loan approvals.
More information is always better, especially when it’s free.
