Is Credit Karma Legit?

Yes, Credit Karma is legal. However, it is not strange that you ask that. The service seems too good to be true. It is free to use, and you get so much useful information from it. Where’s the catch? Technically, there isn’t one but bear with us.

They aren’t collecting your information, but you’ll receive targeted ads. Keep reading for more details about how Credit Karma works, what they have to offer, how secure they are, and so on. The bottom line is, Credit Karma is more than legit, and millions of people are using it. Feel free to get in on the fun.

How Credit Karma Works

Credit Karma has already established itself as a trustworthy service. Its user base is continually growing, and you can see the appeal. Keep track of your credit score is vital, and you can do it for free.

However, they only give insight into the Equifax and TransUnion scores. The Experian score is left out, which impacts the accuracy of Credit Karma’s measurements, no matter what they say. We’ll talk more about that and other drawbacks later.

This service provides you with the VantageScore 3.0 from the credit bureaus mentioned above. This model is excellent, as the credit bureaus themselves made it. It is similar to the FICO (Fair Isaac Corporation) score, which you probably already know.

Additionally, Credit Karma provides its users with credit reports, assistance with tax filing, identity & credit monitoring, and all of this is entirely free.

More Info Credit Karma

Using Credit Karma is straightforward, and it doesn’t even require you to reveal your credit card number and other sensitive information. On sign up, you have to provide your first and last name, your birth date, address, phone number, and Social Security number (only the final four digits). They promise not to sell any of the mentioned information.

With the info you provide them, Credit Karma can give you a detailed analysis of your credit report and your credit score. Sure, you can get the annual reports from any of the official credit bureaus, but they won’t present you with your credit score.

The best part is, you can get weekly updates from this service. Credit Karma can also give you credit monitoring. What is that? They keep track of your credit score and inform you of possible breaches that happen more often than you think.

Your credit information can easily slip into the wrong hands, so this service helps you avoid that.

Is Credit Karma Legit and Accurate?

Now, let’s get on with the central question of this article. Here is a more detailed look at Credit Karma’s accuracy and legitimacy. The VantageScore 3.0 credit score system is indeed reliable, but it only covers Equifax and TransUnion.

Your credit score data from Experian is left out, which is a bad thing. The FICO score is more relevant and accurate because it takes into account all the main credit bureaus. FICO is still the way to go. Otherwise, its scores wouldn’t be sold in millions of copies each year.

Credit Karma is limited, even if they claim otherwise. They say that the VantageScore is nearly as accurate as FICO, but many user reports claim otherwise. No matter how reliable this system is, still, it can’t replace FICO as the industry standard.

How Do They Profit?

All of the Credit Karma services mentioned before are entirely free. How is that possible? The service relies on a very efficient placement of targeted ads. Based on what they know about you, they can make a sound judgment on your interests.

They share that information (nothing harmful to you) with their partners, and that’s how they make revenue. Also, if you get personalized ads and if you choose to buy the service or the product they offer, Credit Karma profits from your purchase.

They also run ads on their pages, which are another source of income. Overall, they run a very lucrative business and are far from a charity. Credit Karma operates on a for-profit business model, and stating that their services are free of charge is false.

They won’t force you to spend money on their site, that’s the thing. It is up to you whether or not you use Credit Karma for free or not. You will still get ads, and with your clicks, they will make money nonetheless.

It’s Good Enough

Even though Credit Karma is excellent for its price, which is zero dollars, it still lacks in some departments. Take the credit score information from Credit Karma with a grain of salt. Don’t get me wrong because the site is legitimate and fair.

It is transparent, and it works to a certain extent. VantageScore is excellent, but I would advise you to look into your FICO score for more precise results. Make the comparison, especially if you want to apply for credit.

Are you a Credit Karma user? What are your experiences? Let us know in the comments below.