How Credit Karma Makes Money (2024)

FAQs

How Credit Karma Makes Money? ›

Credit Karma is a San Francisco-based personal finance company founded in 2007. It makes money by receiving a fee every time a user purchases a product or service that it recommends. The company's leadership includes CEO Kenneth Li and CTO Ryan Graciano.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn't affect our editors' opinions. Our third-party advertisers don't review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently.

Credit Karma can offer free credit scores and reports because we make money in other ways. For example, we use the information in your credit profile to make product recommendations that can help you save money.

You get credit scores and reports for free.

We're talking 24/7 access to your credit scores and reports from TransUnion^® and Equifax^®, timely updates and suggestions that can help you improve your overall financial health.

Credit Karma is a San Francisco-based personal finance company founded in 2007. It makes money by receiving a fee every time a user purchases a product or service that it recommends. The company's leadership includes CEO Kenneth Li and CTO Ryan Graciano.

Why is my FICO® score different from my credit score? Your FICO Score is a credit score. But if your FICO score is different from another of your credit scores, it may be that the score you're viewing was calculated using one of the other scoring models that exist.

Cons. Only two credit bureaus included — Since your Experian score and report may be different, Credit Karma doesn't offer the whole picture. Lots of product recommendations — Credit Karma's partners keep popping up with ads for loans and credit cards.

The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those credit bureaus.

Very good and excellent credit scores: Above mid-700s

People with top credit scores are the most likely to be approved for loans and credit cards with low interest rates and good repayment terms.

Is my money safe with Credit Karma? ›

Credit Karma is not a bank. Banking services provided by MVB Bank, Inc., Member FDIC. Funds FDIC insured up to $5,000,000 through a network of participating banks so your money is protected. No monthly maintenance, transfer, or withdrawal fees.

As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.

A 750 credit score is considered excellent and above the average score in America. Your credit score helps lenders decide if you qualify for products like credit cards and loans, and your interest rate. A score of 750 puts you in a strong position.

Google Capital Leads $85 Million Investment In Credit Karma

Tiger Global and existing investors Ribbit Capital and Susquehanna Growth Equity also contributed to this latest round of financing, bringing the total amount of equity financing raised by Credit Karma to date to $118.5 million.

Editorial Note: Credit Karma receives compensation from third-party advertisers, but that doesn't affect our editors' opinions. Our marketing partners don't review, approve or endorse our editorial content. It's accurate to the best of our knowledge when it's posted.

For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2023, the average FICO^® Score^☉ in the U.S. reached 715.

Where does Credit Karma get its information from? The credit score and report information you see here comes from TransUnion— one of the two national credit bureaus. We do not calculate your credit score. Rather, we show you information that's directly provided by TransUnion so you can better understand your credit.

The credit scores and credit reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. They should accurately reflect your credit information as reported by those bureaus — but they may not match other reports and scores out there.

Income is not part of your credit report. And while lenders often factor your income into their lending decisions, they'll typically get that information directly from you during the credit application process.

Early refund access with Credit Karma Money™

Credit Karma members can get access to their tax refund up to five days early when they deposit it into their Credit Karma Money™ Spend account — no matter who prepares your taxes.