Why Credit Karma is free and how it makes money?


It’s a good rule thumb to check credit profile at least once in a month because it gives you clear insight regarding account balance, payment status and gives you time to make credit score good before serious credit damage occurs. If you often check your credit score, you might have known that there are so many free agencies like Equifax, Experian and Annualcreditreport.com are offering free credit reports. But, the one downside of these credit agencies reports don’t include your credit score. The only legit way to check the credit score by purchasing it from the agencies and they are providing credit score at a hefty price.

Credit Karma Service

If you are looking for a reliable source that gives you real credit score without paying a single penny, then we would like to tell you. Credit Karma Service is one such agency that offers you free credit score reports, and no string attached. It’s completely free. Along with that individuals can also get access to their Trans Union credit report in addition to credit scores from Trans Union and Equifax.

If you are thinking credit karma services are safe and secure. Then we would like to ensure you that, they are absolutely safe. Your personal information never goes out to the third parties so there are no chances of financial and credit identity thefts.

Credit Karma comes with many free online credit tools that let you stimulate how applying new credit will change your score and show you how payment history and debts affect the credit score.

Credit Karma Score

Why Credit Karma Score is necessary for Credit Card?

Still, you are wondering how it could be true that Credit Karma gives credit score free without using credit card number and how it makes money? Let us tell you, the company generate revenue through advertising, their goals to provide personalized offers based on your current credit score. Based on your financial model, credit karma which financial product an individual easily to qualify for, and then referral them off to the financial institution. Basically, the company makes money off qualified referrals.

Credit Karma is rapidly moving faster and offering so many versatile free options. Late last year this financial firms launched a free tax preparation product to compete against the offline and online tax prep companies.  Along with the free tax prep, credit score and credit report you can also see when your reports were last updated and when next update will be.


Without any doubt, Credit Karma is one of the prominent free credit report and credit score services provider. Whether you are a first time member of credit karma or have been using their services for 5 years, you might have thought that why the company is offering something for free and how does it make money. Here’s the short answer- The credit score and report you can see comes directly from the two major credit bureaus Trans Union and Equifax this means credit score is the absolutely accurate and second thing it generally makes money when you get a financial product like a credit card, and loans through this platform.

Also Read: Best HDFC Credit Cards


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