Credit Karma has grown in popularity since it started providing credit scores in 2008. With over 100 million members today, Credit Karma is obviously doing something right.
Credit Karma was designed to provide users with credit scores, reports, and other financial services. Their aim is to simplify your finances and make all of your financial information easily accessible.
In this Credit Karma review, we’ll address why this is so successful and asses if they are worth trying out. Keep reading to see if Credit Karma is the right for you.
Credit Karma’s Best Feature: Free Credit Scores
Credit Karma’s claim to fame is their free credit scores. They live by the message that your financial information should be freely available to you, which is why they provide all customers with two credit scores, weekly reports, credit monitoring, and more.
Many potential users are instantly skeptical of this incredible offer, but it’s completely true. There aren’t any hidden strings or nefarious connections to this deal. Credit Karma legitimately wants to help people out with their credit.
Credit Karma gives each user two VantageScores; one from TransUnion and the other from Equifax. Between these two scores, you’ll get a very accurate representation of your real credit score. These scores are updated daily, so you are always informed on where you stand.
What Does Credit Karma Offer?
This goes far beyond their free credit scores. Credit Karma offers a huge variety of financial tools and resources that users can take advantage of. If you enroll with Credit Karma, you’ll get access to all of the following features:
Credit Card Reviews and Offers
Credit Karma analyzes over five million credit cards every month to learn about the average cardholder. All information that they gather from these studies is posted to their website and can be easily accessed.
This feature allows you to learn more about credit cards and credit card lenders before applying to one yourself. Credit Karma will even let you apply for a credit card directly from their site.
If you sign up to be a member of Credit Karma, you’ll also get to post your own credit card reviews and compare credit card terms. You’ll also receive personalized credit card suggestions based on your profile. Note that Credit Karma includes business credit cards as well as personal ones.
There are endless reasons to take out a personal loan, from refinancing your student debts to paying for a new expense. While personal loans are an essential financial tool, applying for one can be extremely daunting. Not only are you worried about where to , but you also need to be concerned about the likelihood of your application being accepted.
Credit Karma helps to break this down and make the task much easier. You’ll be able to find out which personal loans suit your situation best based on your credit score. They even provide a snapshot of each option that covers the basics such as the estimated loan amount, APR, and terms based on your input.
Credit Karma also gives you access to unbiased reviews of lenders and banks so that you can make an informed decision.
Similar to a personal loan, automotive loans give you a chance to finance a vehicle. With such a big expense, automotive loans can really bridge the gap for those needing a ride.
Just like with the personal loans, Credit Karma helps its members find the automotive loan lenders that are more likely to accept their applications by reviewing an individual’s credit score. Credit Karma also helps you to find the best deals on automotive loans by comparing their interest rates, borrowing allowance, and repayment plans.
Reviews on each lender can be found on the site as well.
Community Financial Advice
Need a little financial advice? Credit Karma has an open forum for its members to both ask and answer questions. If you have any queries about your finances, posting it in the forum will allow you to get an answer from either a financial professional or another member depending on what is asked.
You can also check to see if your question has already been asked by typing a few keywords into the search bar. Community members thumb up and thumbs down comments to bring the best and most relevant advice to the top of the forum, meaning you don’t have to hunt for the right answer.
Personal Finance Blog
As well as offering financial services, Credit Karma runs a great financial blog. Topics such as Karma Culture, Industry News, Engineering, News, and Pressroom are easily accessible through the menu bar.
Credit Karma’s blog contains good credit articles from industry professionals giving you an insight into a variety of areas.
Similar to their blog, a collection of credit-related articles from renowned sources like the Huffington Post and Forbes are collated in the “Your Weekly Money ” feature which can be found under the Resources tab.
Home and Auto Insurance Scores
Your home and auto insurance score is determined with risk factors such as active accounts, payment history, credit card utilization, and age of credit history. Some states use this score to discover how likely you are to make a claim and base your premiums on the personal information they find. However, this isn’t always the case as some states have made using your home and auto insurance score to determine your premiums illegal.
Just like with the credit scores, Credit Karma has paired with TransUnion and Equifax to determine your credit reports. These are updated on a weekly basis and free to check for discrepancies.
If you find any issues with your credit reports, you should immediately remedy them and Credit Karma helps you do this by highlighting areas that need your review.
It wouldn’t be a well-rounded article without completing a Credit Karma monitoring review. Credit Karma’s monitoring is free if you sign up for a membership and will alert you if there are any important changes being made to your credit. This is essential for spotting and preventing identity theft and shouldn’t be overlooked.
Occasionally, the two different credit reports won’t match up. That’s because you have pulled the reports at different times but can also occur if there is an error or a lender hasn’t reported to both TransUnion and Equifax.
A free credit report can also be accessed when you apply for a loan as your lender will most likely pull one from the records. These full reports include your accounts, credit inquiries, public records, and collection activity.
Credit Karma has a credit score simulator and four different calculators at your disposal.
With the credit score simulator, you’ll be able to see how your financial actions and decisions affect your credit score. This is an essential tool for keeping on top of your finances and seeing how increasing your credit line or opening a new credit card will affect you in the long run.
The four loan calculators, on the other hand, take your credit score and history into account to give you an estimate of what to expect when you apply for a loan. Each one calculates either home affordability, debt repayment, simple loan, or amortization.
Why You Should Check Your Credit Score
Many individuals question the importance of knowing their credit scores. We’re here to inform you that its vital to stay on top of your finances.
If you don’t regularly check your credit score, you’re running the risk of missing any inaccuracies and errors. If you don’t deal with these immediately they can have a lasting impact on your credit score and give you a poor rating.
With a poor credit score, you’ll be limited in what you can do. It can stop you from taking out a mortgage, being approved for loans, getting a credit card, renting an apartment, or getting a job.
Credit Karma App vs. Website
It wouldn’t be a proper Credit Karma review without a Credit Karma app review thrown in the mix. Credit Karma has an app available on both the Apple and Google Play stores for users to have easy access to their credit scores and reports.
While Credit Karma’s app did have discrepancies in credit scores from the website in 2014, they seem to have since worked out all the kinks. You can trust the app with all of your information as there are robust security measures in place to keep anything sensitive private.
Checking your scores via the app is perfectly fine when you’re in a rush, however, users report that it’s easier to navigate the website version, creditkarma.com.
How To Sign Up To Credit Karma
Signing up to Credit Karma is easy and only takes a few steps.
- Create an account by entering your email and choosing a password.
- Enter the last four numbers of your security number (required to access your credit bureau information).
- Verify your identity by answering a few questions.
Once these steps are completed, you’ll be able to access your free credit scores, weekly reports, and more all from your dashboard.
Is Credit Karma A Scam? Is It Safe To Use?
Being a free site, it’s no surprise that some users are wary and concerned if Credit Karma is a scam. The truth is: Credit Karma is legit and does offer all these services for free.
You don’t need to use a credit card to sign up and take advantage of all of Credit Karma’s tools and resources.
Credit Karma also makes sure all your information is protected and monitors their servers 24/7. They have installed complex firewalls and have a DigiCert EV SSL certificate, which means the site has the highest level of authentication. They also do not store any information relating to your Social Security Number.
Credit Karma is a great financial resource that legitimately provides free credit scores, weekly reports, and other tools to its members. Signing up is quick and doesn’t require you to enter your credit card information.
They’ve taken several precautions when it comes to keeping your private data safe and secure, so you don’t need to worry about your information being leaked.
With Credit Karma, you’ll gain access to multiple tools and resources that will help you stay on top of your finances and get your life under control. They’re a trustworthy service that genuinely cares about their users’ ability to see what is happening with their credit.
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