Credit Karma Review
Are you looking for safe and reliable software that obtains your credit score for free? And that too once per week? Well, do not worry. We have got you covered. It sounds too good to be true, but San Francisco startup Credit Karma can do just that for you. While your free credit report has always been available to order once a year, consumers haven’t been able to access a free version of their credit until recently.
Accessing your credit score regularly can protect you from mistakes. It can also alert you to problems in your finances if you see your credit score dropping. As XYPN consultant Sophia Bera pointed out in a recent blog post, your credit score is like your financial report. Poor “grades” or a lower score may indicate bad financial habits that need to be corrected. Checking your score more than once a year can increase your awareness and help you get back on track before you do serious financial damage. So is Credit Karma worth it? Is it legit? Should you use it yourself? Let us get started with the review.
Ease of use
Value for Money
No free trial
Yes, has free version
- Free Credit Score
- Graphical Representation
- Weekly Updates
- Free Tax Preparation
- Can’t access actual credit report
- No FICO Score
- Cloud, SaaS, Web-Based
- Mobile - Android
- Mobile - iPhone
Credit Karma Tax
Credit Karma was founded in 2007 by Kenneth Lin, Nichole Mustard, and Ryan Marciano and has grown to a multinational corporation with over a hundred million users. In December 2020, Intuit, which runs TurboTax, finalized the purchase of Credit Karma in an $8.1 billion valued deal, together with cash and stock. Currently, Kenneth Lin is the chief executive officer, Ryan Marciano is the chief technology officer, and Mustard is the chief sales officer.
Credit Karma is an aptly named private finance service. If you pay your credit score card payments in full and on time each month, do not open and close accounts frequently, stay current with loan payments, and keep away from terrible events (along with bankruptcies and tax liens), you will be rewarded with a desirable credit score. However, since maximum people do not have the best credit score habits, we need to realize where we stand and enhance that critical number.
Moreover, Credit Karma helps on both counts. It keeps you updated on that all-vital credit score. However, it additionally informs you of potential credit score breaches and presents tools that assist you in discovering and securing quality credit score cards, loan, vehicle, and auto coverage deals. It does all of this for free, paying for itself by the recommendations it makes to you based on your usual credit score profile.
What is Credit Karma?
Credit Karma is a free online provider providing a month-to-month credit score rating since 2007. They additionally offer free credit score monitoring, federal and state income tax preparation, and credit card and mortgage recommendations. The final service referred to above, credit card recommendations, is how Credit Karma budget the operation. Credit Karma pairs your credit score rating with credit cards that typically accept candidates with a comparable rating. If you apply via Credit Karma, they obtain a small commission.The key benefits of using Credit Karma are as follows:
- Credit Karma offers you a free credit score rating and credit score file in exchange for statistics about your spending habits. It then charges corporations to serve you targeted advertisements.
- The ratings and credit score file statistics on Credit Karma come from TransUnion and Equifax,of the 3 most important credit score bureaus.
- Credit Karma compiles its personal VantageScore based on that statistic.
- Your Credit Karma rating needs to be identical or close to your FICO rating, that is what any potential lender will probably check.
- The variety of your credit score rating (such as “good” or “very good”) is more important than the precise number, to be able to range by source and edge up or down often.
How accurate is Credit Karma?
The free credit score you get from Credit Karma comes directly from TransUnion and Equifax, two of the three credit bureaus. It’s not your FICO score, the scoring model used by most lenders. In the credit industry, these credit scores are referred to as “FAKOs. FICO stands for Fair Isaac Corporation, the largest competitor in creating scoring models for assessing consumer creditworthiness. You don’t even have to be a customer with some credit card companies to access your FICO score.
Set up your Credit Karma account
Getting started with Credit Karma is simple enough. The sign-up web page reminds you that signing up is certainly free. They additionally point out that checking your credit score rating with them will now no longer affect your credit score; it is a smooth inquiry. Good to know.
The sign-up web page also offers you a choice to choose from receiving promotional offers in your inbox. However, you should comply with acquiring updates in your credit score document through email before Credit Karma allows you to continue with the sign-up method.
The subsequent step is the scary part: lots of private data. You want to install your name, address, phone number, birthday, and the final four digits of your social safety number. A small message does pop up as you are coming into your SSN that’s quite reassuring: Credit Karma now no longer stores your data on a database, and it is best used to pull your first credit score.
If Credit Karma cannot find your score primarily based totally on the non-public data and last four digits of your SSN, you will need to type on your complete SSN — and this comes with some other message with greater details on how they preserve your data secure. The very last step: verifying you’re whom you are saying you are. You’ll be requested some questions you want to answer before the sign-up process is complete correctly, and you could get your score.
Credit Karma Features
Credit Karma offers free credit scores, credit score monitoring, and insights that will help you manipulate your credit score. It alerts you to critical changes in your credit score reviews and gives pointers and hints that will help you accurately manipulate your credit score and enhance your credit score rating. Other beneficial offerings of Credit Karma include:
- A graph depicting your credit score rating over time.
- A credit score record card showing how debt utilization and price history impact your credit score rating.
- How your credit score rating compares to others by income, age, and state.
- Tools to simulate how applying for a brand new credit card or paying debt impacts your score.
- Free credit score record with weekly updates.
Now let us have a detailed look at the features.
Easy to use Interface
An easy website online needs an easy consumer experience, and Credit Karma supplies it. The dashboard has been modified since I reviewed the web website online; however, it’s still effective. At the pinnacle of the dashboard is your credit score rating, as reported by one of the three bureaus. A semi-circular photo pinpoints wherein you fall on the scale of viable numbers, and arrows illustrate whether or not your modern rating has gone up or down since the closing report.
Below are hyperlinks to your credit score, vehicle mobile, housing, and mortgage debts to internal homes pages. That said, you need to go through several commercials for cautioned economic merchandise. You are probably instructed that you could pay much less for mobile vehicle insurance, get a low-hobby mortgage, or refinance your mortgage, for example. These possibilities are all tied to your credit score profile factors and personalized for you. Toward the bottom of the display screen are the real facts about your credit score, including a listing of debts with open balances.
Easy to set up and install
Getting started with Credit Karma only takes a few minutes. You will need to provide your name, address, and personal financial information, such as your social security number. Because the site contains such sensitive information, it offers several security features, all of which you should use. You can request a code sent via SMS to verify your identity with two-factor authentication, for example, when you log in from another device or answer security questions. You can turn credit and identity monitoring on or off and request email alerts for special promotions, changes in your credit score, ID monitoring, and more.
Credit Karma publishes its advertising disclosure on many sites. It is explained that Credit Karma receives compensation from third parties who influence where and how products appear on the website (e.g., the order in which they appear). That’s why Credit Karma can offer so much free content, and it’s a business. The model used by competing websites.
Credit Karma’s Android and iOS apps are comparable in that they deftly mirror the browser-primarily based experience. I pick the use of Credit Karma on my phone due to its attractive, compact design. The app provides a brief get right of entry to your credit score ratings and reports, guidelines for monetary merchandise that is probably greater economical, contrast shopping, and hints for enhancing your credit score ratings.
They additionally permit you to take deep dives into the info of your accounts. Four icons at the lowest of the display screen are all you want for navigation. Credit Karma’s iPhone app lets you drill down into the info of your accounts. In addition, you can use Credit Karma’s Credit Score Simulator at the service’s Android app.
Credit Karma files almost every tax return for free. Even if you must list or file a complex Form C, D, or E when reporting capital gains or self-employment income, there are some unsupported tax forms where Credit Karma will not file New Mexico tax returns or partial resident returns. Suppose you’re tired of constantly refusing your current tax program. In that case, numerous attempts to increase sales, or the fact that you can file a federal return for free but have to spend a small fortune to fill out your state returns; Credit Karma Tax could be this one year might be a good option.
Credit Karma Tax isn’t as easy to use as their paid services like TurboTax or HandR Block, which offer expert advice and automatic data import, but it’s free. So entering all your information can be worth the savings. It’s also still much faster than with pencil and paper.
Credit Karma Pricing
The important draw for Credit Karma is the capacity to look at your credit score rating for free. They have been one of the first online offerings to provide this free perk, and that is why they’re one of the most important online platforms today. Plus, they do a great task advertising via television commercials.
Credit Karma offers you the VantageScore 3. 0, which was evolved by the three credit score bureaus (Equifax, Experian, and TransUnion) as an opportunity to the FICO scoring model. Most creditors nevertheless select the FICO credit score rating to the VantageScore. Still, the VantageScore continues to be very comparable and may provide you with a great concept of what your FICO rating will be. In addition, each time you log in to Credit Karma, your rating from Experian and TransUnion will also update.
Credit Karma Alternatives
The popular alternatives that are available in the market to Credit Karma are listed down below:
- MSM Credit Monitor
- MSE Credit Club
Credit Karma Review Conclusions
Credit Karma has 60 million members because they do a good job providing your credit score and monitoring your credit score for free. Sure, it would be nice to offer the FICO score instead since that’s the “gold standard” of credit scores, but Vantage Score is still a good alternative. In addition, the resources available at Credit Karma make it easy to track your credit activity and plan for your next successful credit card application. So check your credit score today!