Editorial Discloser: Opinions expressed here are authors alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
Credit Shout may collect a share of sales or other compensation from the links on this page.
If you’re new to applying for a credit card, then you’ve probably seen countless TV commercials from Credit Karma. The company has built a stellar reputation as a worldwide personal finance organization.
Founded in 2007, Credit Karma spearheaded a revolution in providing millions of people across the world with free credit reports and scores. It even lent a hand to aid consumers in understanding credit reports and credit scores.
Before applying for a credit card, it’s important to answer questions such as “is Credit Karma accurate?” or can you possibly receive a free credit score from the platform? Below, you’ll receive vital information about Credit Karma and how you can move forward with receiving your credit report and score.
What is Credit Karma?
Credit Karma was founded by entrepreneur Kenneth Lin in 2007. The company was acquired by Intuit in December 2020. It receives its credit information from two of the three major credit bureaus: TransUnion and Equifax.
Credit Karma is more than a reporting agency. The organization provides personal finance advice to millions of people across the world. It’s also used by countless creditors, considered to be a household name in the finance industry.
Consumers are able to use Credit Karma to obtain a free credit score and report, for both personal reasons and before obtaining a loan for a car or home.
How Does Credit Karma Work?
Credit Karma pulls data from TransUnion and Equifax. These credit bureaus acquire information from creditors. For example, when you make on-time payments for your credit card, your creditor (the company giving you credit card) will send a good report to a credit bureau.
Likewise, if you miss too many payments on an auto loan, your creditor can send a negative report to a credit bureau. If you are using your credit, your information will be acquired from credit bureaus.
Credit Karma processes this information and provides a cumulative score. It will also give you a detailed report about your recent transactions, credit history, and disputes. By collecting information about your spending habits, Credit Karma sells this data to advertisers.
Are Credit Karma Scores Accurate?
Many consumers will wonder if Credit Karma scores are indeed accurate. After all, they only receive their data from two credit bureaus. The answer is that Credit Karma is a fairly reliable credit reporting organization.
You can use Credit Karma to obtain a free and accurate credit report, while peeking at your up-to-date credit score. There are no caveats to Credit Karma’s price. Since they earn revenue from advertisers, all of their services are completely free of charge.
Credit Karma is a Reliable Resource
The first step in applying for a credit card is knowing what your score is and if you have any existing accounts open. When you’re trying to improve your credit, knowing your score can be beneficial as well.
Nonetheless, Credit Karma won’t instruct you on which credit cards to apply for to build your credit. By using Card Match, you can find a suitable match that will fit your spending habits and purchasing power.