Credit Karma offers consumers access to fico scores and other credit information from TransUnion and Equifax, as well as tools for consumers to boost their rating. Users can access Credit Karma’s information for free and as frequently as they desire, without registering with a debit card. By contrast, the three major credit reporting agencies provide complete credit history information free of charge to consumers only once each year, charging a payment for added requests. Credit Karma makes money by recommending financial loans such as credit cards based on your credit information, and gets a commission if you buy a recommended product.
KEY TAKEAWAYS
Credit Card Karma offers free access to TransUnion and Equifax credit data, as well as offering tax preparation assistance, and other services.
It creates money by acquiring a fee each and every time a user purchases a product or service it recommends.
Credit Karma is a fintech startup concentrating on providing credit information.
On February 24, 2020, Inuit announced it was purchasing Credit Karma for $7.1 billion.
Credit Karma’s Industry
Credit Karma is a fintech services company. Unlike some companies on the market, Credit Karma and its immediate rivals do not sell your data to third parties. In addition to providing credit scores, Credit Karma also guides consumers regarding what next steps to take once they have accessed their initial credit information.4 For instance, the business recommends bank cards that are tailored to each consumer predicated on the odds of approval. It also provides users with guidance about tailored personal, home, and auto loans based on income and credit scores.
Fundraising and Financials
Credit Karma includes more than 100 million members in the U.S., Canada, and the U.K. by February, 2020.7 According to Crunchbase, Credit Karma has raised $868 million over 8 funding rounds, the most recent which was on March of 2018.
Recent Developments
The company now is expanding Credit Karma Tax, the free tax preparation service it launched three years ago. For the current tax season, Credit Karma Tax is starting to automate tax filing for its members. Credit Karma members can also link their tax filing to a Credit Karma Checking account to increase tax refunds.12
How Credit Karma Reports Diversity & Inclusiveness
Within our effort to improve the awareness of the value of diversity in companies, we offer investors a glimpse in to the transparency of Credit Karma and its commitment to diversity, inclusiveness, and social responsibility.
