About Credit Karma

Credit Karma Review

This Credit Karma review provides you with details about the company history, free credit reports and scores, and more!

You can access all the features and learn how to enhance your financial freedom with this company.

The bottom line is that Credit Karma does a superb job of helping you realize your credit building and other credit options.

This article contains a detailed review of Credit Karma. You’ll learn about the company, its services, and its pros and cons.

What's Ahead...

Company History

company history

Credit Karma was established in 2007 by Kenneth Lin and co-founders Nicole and Ryan Graciano. Their purpose was to provide people with free access to their credit information.

In 2008, despite the global financial crisis, Credit Karma launched its operations and started providing access to free credit scores.

The general idea for their launch was to level the field for many consumers. They achieved their goal by providing consumers with free access to credit information to help them make informed decisions.

Credit Karma’s success began in 2010 with a record of 1 million registered users. Since then, it has continued to expand with the number of users and accessible features.

The good thing is that all these features are accessible for free!

Overview of Credit Karma Services

Credit Karma majors in providing credit reports to its millions of consumers for free.

Here is a list of services provided in this Credit Karma review:

  • Credit monitoring
  • Both state and federal tax preparations
  • Credit cards
  • Loan recommendations
  • Repairing of credit scores
  • Pairs your score with relevant credit cards

In our Credit Karma review, we provide details about their personalized recommendations for your financial management. All these features are free!

Besides, Credit Karma focuses on financial education for many uninformed users.

With Credit Karma, you’ll learn more about how financial institutions rank your loan capabilities.

Pros and Cons of Credit Karma

pros and cons list

Like most credit services, Credit Karma has its benefits and limitations. Check out the pros and cons in this Credit Karma review:


  • User friendly: When you log in, your TransUnion and Equifax credit scores display in a graph on your account dashboard. The credit simulator also allows visual learners to understand how debt repayment and borrowing decisions impact their credit ratings.
  • Daily credit score: While other companies limit your access to a free credit score once a year, Credit Karma allows you to see your scores whenever you want. Seeing your credit score on demand is extremely helpful when rebuilding lousy credit or keeping track of your credit usage.
  • Bonus financial services: Credit Karma’s tax service and online savings account are both free to use. While similar financial solutions are available elsewhere, some customers prefer to use the same platform for various functions.
  • To use free services, you do not need to apply for a credit card or a loan.
  • Preparation of your federal and state taxes for free.


  • Receive a Vantage instead of a FICO score: Credit Karma uses the Vantage Score 3.0 credit scoring algorithm to offer data and credit ratings from Equifax and TransUnion. This data can provide you with a lot of information, but most lenders will look at your FICO score, which may differ from the Vantage score. Your Vantage Score 3.0 score will, nevertheless, follow the same trends as your FICO score. 
  • Clients cannot access the actual credit report.
  • Advertisements: Credit Karma’s business model is achievable through ads. However, these ads may annoy consumers. Just remember that you should always make your own judgment calls when it comes to new loans, refinances, and credit card offers. You’ll encounter advertisements, but that’s a minor price to pay for direct access to your credit scores.

How Does It Work?

credit carma score result

In this Credit Karma review, we discuss how the company works. Credit Karma provides customers with a free credit score and credit report based on information about their spending patterns.

Their source of income comes from companies that promise to deliver tailored results from advertisements that customers follow.

TransUnion and Equifax remain two of the three primary credit agencies that provide Credit Karma with scores and credit report information. Based on such data, Credit Karma generates its Vantage Score.

Your Credit Karma score is typically similar (but not the same) to your FICO score, which is what any potential lender would most likely consider. 


In this Credit Karma review, you can find out more about their plans.

You can check your free Equifax and TransUnion credit reports on Credit Karma.

You can check your free credit reports as frequently as you like, just like you can check your credit scores.

Credit Karma is entirely free to use, meaning there are no pre-set plans for clients.

Refund Policy 

The return allocation limit for Credit Karma Savings accounts created during the filing process is $500.

Existing Credit Karma Savings account customers will receive a $10,000 return allocation limit. Members who use Credit Karma Tax to submit their taxes will enjoy a hassle-free experience.

Who Is Credit Karma For? 

who is it for

The Credit Karma company model satisfies most customer needs, which means that everyone can use this platform.

This use is evident from the range of services it offers as a company and the number of customers who use Credit Karma’s services.

These services include:

  • Helping to stop identity theft: Credit monitoring can help you protect yourself against identity theft, but it isn’t always sufficient. If you notice an issue, you must act quickly to safeguard your credit information. If you are a victim of identity theft, Credit Karma can help you through the procedures you need to follow to resolve this problem.
  • Credit Karma savings: This bank account offers savings rates comparable to those that other banks provide. In the current low-interest-rate environment, the rate isn’t particularly spectacular. However, the company maintains its competitiveness against other high-interest savings accounts. Furthermore, there are no charges associated with the account, and you don’t have to maintain a minimum balance on your account. To withdraw or deposit money, you will have to link the account to one of your existing bank or credit union accounts.
  • Credit Karma Tax service: This service now offers an online tax preparation service to compete with TurboTax, H&R Block, and other popular tax preparation services. Even if you’re a freelancer who doesn’t receive W2s from an employer, you may be able to submit your tax return for free.

Customer Support 

Credit Karma’s best customer service is via email. However, this method may be frustrating if you are hoping to speak with a Credit Karma employee immediately over the phone or live chat. Unfortunately, Credit Karma does not currently provide live chat as a customer care option.


In our Credit Karma review, we discovered that the company has 60 million users.

This level of popularity is because it does a fantastic job of improving your credit score and credit monitoring for free. Don’t forget, there are other companies to get a feel for as well.

Although it would be preferable to offer the FICO score as it is the “gold standard” of credit ratings, the Vantage Score is still a viable option.

However, Credit Karma’s tools make it simple to keep track of your credit activities and plan for your next successful credit card application.


Is Using Credit Karma a Good Idea?

Paul Martinez

Paul Martinez is the founder of BendingDestiny.com. He is an expert in the areas of finance, real estate, and eCommerce.  Join him on BendingDestiny.com to learn how to improve your financial life and excel in these areas. Before starting this blog, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.

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