Credit Karma Review: More Financial Tools, Zero Costs

Two iPhones showing the Credit Karma app credit score and chart
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Financial stability should be everyone’s goal, but it’s hard to get there alone. There’s so much that goes into your finances – taxes, loans, credit scores, etc., – that it can feel impossible to get on top of it all.

It’s important for everyone to take charge of their financial stability because that can help lead to full financial independence. You don’t need to go at it alone, however. Credit Karma is here to help, offering a wide variety of free financial tools dedicated to helping people boost their credit scores, file taxes, apply for credit cards, and more. If you struggle with your finances, Credit Karma might be for you.

What is Credit Karma? 

With more than 100 million users and a completely free-to-use platform, Credit Karma is one of the leading FinTech companies today. The company was founded in 2007, and began as a free credit score reporting platform. In the years since, Credit Karma has expanded to include almost any financial help you could imagine:

  • Credit card reviews and recommendations
  • Personal and auto loan shopping
  • Tax filing
  • Fee-free savings
  • Free credit reports and monitoring in addition to your score

There are also resources about identity monitoring and claiming unclaimed money, as well as a blog covering just about everything else. Credit Karma isn’t exactly a one-stop-shop for all your financial needs, but it’s pretty darn close.

How Does Credit Karma Make Money?

Credit Karma is so appealing and widely used because all of its services are free, but how does the platform make money then? In fact, the entire business model is based on shifting fees away from consumers and onto companies.

The site recommends financial products to users and gets a commission every time someone signs up for a product that Credit Karma recommended. While you may be worried that the recommendations are commission-based, keep in mind that it’s in Credit Karma’s best interest to find the perfect product for you. The better suited a product is to your needs, the more likely you are to sign up. Across the board, everything is geared toward giving you the tools you need to achieve financial independence.

Credit Score Management

Although there are plenty of services on the platform, Credit Karma’s bread and butter is the free credit score reporting and monitoring. It was one of the first companies to offer free credit scores way back in 2008 and has continued that tradition for more than a decade. Of course, free scores are more common now, so Credit Karma has expanded their credit score reporting.

Not only can you see your score for free, but you’ll also get a detailed report on what goes into your score and why it is what it is. In addition, Credit Karma offers free score monitoring and will alert you of any suspicious changes to your credit rating. Credit monitoring is an easy way to automate the healthy habit of keeping a watchful eye on your credit.

The Bottom Line

Top to bottom, few platforms offer as many services as Credit Karma does. You’d be hard-pressed to find another site with so many tools in one place. Credit Karma is perfect for keeping you on top of your finances and giving you the full picture of what that actually means. The platform is designed to make you more financially literate and secure, to eventually make you financially independent.

Credit Karma’s tools will be more helpful for some than others, but there are reasons why more than 100 million Americans trust it. Since it’s completely free to use, it’s worth giving it a shot. Especially when it doesn’t ask for a credit card, they don’t sell your information, and requesting your free report will not impact your current credit score.