It is important to know your credit score. Knowing it helps you plan and stay on track with your financial goals. A Credit Karma review is essential to deciding the site’s trustworthiness. Credit Karma promises it will give its users free credit scores. Can you trust the site? Does it keep sensitive information safe? Yes, is the answer to the previous questions. Credit Karma is a safe, legitimate way to check your credit score. Read through the following paragraphs to learn why Credit Karma is a trustworthy site.

What is Credit Karma?

Credit Karma has been offering a free monthly credit score since 2007. The site was founded by Kenneth Lin, Ryan Graciano and Nichole Mustard as an American multinational personal finance company.

The site offers free credit monitoring, federal and state income tax preparation and credit card and loan recommendations. 

Credit Karma believes that when consumers have know their credit scores, they pay their bills on time. Doing so creates a more adequate financial system that is better able to meet consumer’s needs.

Credit Karma has over 100 million subscribers. Over half of its users are millennials. 

A Credit Karma review finds the site provides free credit scores, tax preparation and financial information.

Features of Credit Karma

Credit Karma offers more than just free credit scores. A Credit Karma review finds that the site offers free credit scores and reports from the reputable TransUnion and Equifax. Users can sign up for weekly updates to monitor their credit cards. The site posts credit and financial articles. It has credit card reviews users browse through to find the best card for their financial situations. Credit Karma has member reviews that individuals use to make informed financial decisions.

How Does Credit Karma Make Money?

Credit Karma learns a multitude of information from each user, including spending habits. The site partners with banks, lenders and credit card companies to refer individuals to them.

As an individual enters his/her personal information on the site, he/she is shown a credit card or financial service that matches him/her. Credit Karma makes money by referring users to financial services. 

How Does Credit Karma Calculate Scores ?

Credit Karma uses TransUnion and Equifax credit bureaus to calculate scores. These two companies are major credit bureaus. Credit Karma provides a VantageScore using both bureaus. A VantageScore credit score was created by the major credit bureaus.

Is Credit Karma Accurate?

After a thorough Credit Karma review, the answer to the question is yes, but with limitations. Credit Karma provides users their Transunion and Equifax credit scores. Most lenders use FICO. Users only see scores from two of the three lenders. The site does not report from Experian. It only updates scores once per week. If you make a major change to a credit card, the site may not pick up on it right away. This delayed response may impact borrowers decisions and provide users a sometimes inaccurate financial picture. If you are planning on obtaining a mortgage or other purchase it is necessary to get your FICO score. You will have a full financial picture.


This credit scoring system is on it’s fourth version. That version is called VantageScore 4.0 and launched in 2017. VantageScore states that it scores 30 million more people than any other scoring system. The VantageScore scores individuals with very little credit history. This is also known as having a “thin” credit file.

VantageScore gives a score between 300-850. A VantageScore heavily weighs on an individual’s total credit usage and balances.

A VantageScore is a consumer credit score. Many consumers, landlords and lenders use the score to analyze a borrower’s credit history. VantageScore looks at payment history, credit age and mix, credit utilization, balances, recent credit applications and available credit to determine a borrower’s score. VantageScore competes against FICO. It is just another option to score credit.

FICO Score

FICO, stands for the Fair Issac Company, a data analytics company from San Jose, California. A FICO score usually drives consumer lending. FICO bases its score on the borrowers’ payment history, total debt, length of credit history, new credit and types of credit. A FICO score  range is from 300-850. A score of 600 or less indicates poor credit history. Most lenders use a borrower’s FICO score.

What Information Is Collected?

Credit Karma collects a user’s name, address, financial details and Social Security number. A user may request a texted code to verify identity with a two-factor authentication if logging in from a different device. Users can turn credit monitoring off or on and request email notifications.

Credit Karma uses the same information security strategy as Apple and Google.

Is My Information Safe?

A Credit Karma review finds the site uses bank level 128-bit encryption in its data transmissions. It employs a security team that quickly responds to questions and concerns. The site pays people to identify and notify the site of its vulnerabilities. Apple and Google also use this security strategy.

Credit Inquiries

Credit Karma uses soft inquiries when users check their scores. Therefore, there is not a negative impact on the user’s credit scores. Hard inquiries occur when an individual applies for an auto loan or mortgage. These inquiries impact a credit score.

How Do I Improve My Score?

If your score is lower than you want, there are ways to improve it. 

  • Get a copy of your credit reports. You need to know exactly where you’re at. 
  • Pay off past due balances. Your credit score drops the further you are on your payments. 
  • Do not take out any new credit cards. You will be known as a “risky borrower.” You appear financially stable when you do not have very many credit cards.

Is Credit Karma Safe?

Credit Karma is a safe and legitimate site. It collects sensitive information to provide users with an AdvantageScore credit score. It has top-notch security systems to keep users information safe. There are always ways to improve a credit score. Knowing your credit score helps you save for the future, pay off debt and financially plan.


Credit Karma’s goal is to provide users their credit scores so they can make quality financial decisions. The site wants consumers to reach their financial goals. Credit Karma is transparent about how it uses user’s information and makes money. Knowing your credit score is the first step to paying off debt and setting realistic financial goals. Find out yours to make informed, financial decisions.

Read Also:

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