Credit Karma Review: Worth it or Scam? Real User Review (2020 Update)

My Credit Karma Review

Ever since I first used Credit Karma in my 10 free financial services post (and yes, you can get a free Credit Karma account for life), I’ve had many curious friends and readers ask me questions about them. That prompted me to write this Credit Karma review and update it frequently.

I’ve now been a Credit Karma user for over 9 years, and update this review every few months to reflect my experience. The most common questions I receive about Credit Karma are:

  • Is Credit Karma free?
  • What are the benefits of using Credit Karma?
  • How does Credit Karma make money?
  • Is Credit Karma safe?
  • Is Credit Karma a scam?
  • How accurate is Credit Karma?

Credit Karma review

I had all of those questions myself. And I researched heavily. What follows is a review of Credit Karma that hopefully answers these questions and more.

Is Credit Karma Free?

Is Credit Karma really free? Yes, Credit Karma is 100 free%. This was the big question that I had going in as well. You’ll notice with most other “free credit score” companies, when you sign up for their service, they ask for your credit card. And then, a month later, you’ll unsuspectingly get charged. After going back to read the fine print, you’ll notice that free was really only free for the first month, and if you didn’t cancel your subscription, you’ll get charged.

Not at Credit Karma. In their FAQ’s they state:

Q: Is Credit Karma really free?

A: Yes. Credit Karma is always free. Credit Karma won’t ask you for your credit card number during the registration process or at any other time.

I can confirm this is true. I’ve never been charged or been asked to charge when using Credit Karma.

Why Should I Use Credit Karma? What are the Free Benefits & Features?

Here’s a rundown of all the free benefits you can get from a Credit Karma account:

Credit Karma

  • TransUnion Credit Score: as seen above, you get a free TransUnion credit score, and it is continuously updated so you can see how it changes periodically as you take actions that will impact your credit score.
  • Equifax Credit Score: you also get a free Equifax credit score, in addition to TransUnion credit scores. That makes free scores for 2 out of the 3 major credit bureaus. Both scores use the VantageScore 3.0 model.
  • TransUnion Credit Report: Credit Karma has free credit report access too. By clicking on “My Overview” and “score details” in your dashboard, you can access your credit reports and check them any time (they are updated weekly). This gives you more consistent access to credit reporting throughout the year (versus 1 report per bureau per year via, allowing you to frequently monitor and correct any errors or discrepancies.
  • Equifax Credit Report: After TransUnion credit reports were added, free Equifax credit reports were added as well.
  • Credit Accounts List: a list of all of your accounts and when they were created.
  • Free Credit Monitoring: One of the best features of Credit Karma is free credit monitoring – so you can monitor any suspicious activity like new accounts created or credit inquiries that you did not initiate. Click in to your “profile” and look under “communications & monitoring” to set it up.
  • Credit Card Spend: You can easily track your credit card spending by category (similar to Mint) by linking accounts.
  • Credit Factors Report Card: under “Score Details”, Credit Factors allows you to see a grade on each of the factors that go into making up your credit report: credit utilization rate, payment history, age of accounts, derogatory remarks, total accounts, and credit inquiries. Good info for improving your credit score.
  • Credit Score Simulator: under “Resources”, the Credit Score Simulator might be the most useful feature on Credit Karma. You get to simulate how taking certain actions (i.e. closing a credit card, opening a new one, increasing your credit line, etc.) may impact your score.
  • Identity Monitoring: Credit Karma will show you if any of your personal information has been breached in hacks of other websites.
  • Free Tax Filing: Credit Karma is now offering free tax filing (called “Credit Karma Tax“). An amazing free benefit!
  • Financial Calculators: Credit Karma offers various financial calculators for personal use: mortgage refinance, debt repayment, loan, amortization, etc.
  • Credit Karma Savings: Credit Karma Savings is a new (no fee) high-yield savings account from Credit Karma. There is no minimum deposit to open.

How Does Credit Karma Make Money?

How does Credit Karma makes money if they don’t charge you for their service? It’s a legit question. They have almost an identical business model to If you’ve signed up for Mint’s service, you’ll periodically get Mint partner offers that could potentially save you money. It’s a form of targeted advertising. Credit Karma has the exact same model: ad-based offers from partners.

Credit Karma business model

You can elect whether or not you actually want to receive these offers right on the sign-up page under communication preferences (and you are even opted out by default). I appreciate that level of transparency.

Is Credit Karma Safe?

Any time you are dealing with your credit, you want to make sure your privacy is safe and secure. Is Credit Karma safe and secure? Yes – Credit Karma is extremely safe.

is Credit Karma safe?

With any credit service, you must be identified by your Social Security number. With some new account registrations, you may only need to use the last 4 digits (see image). Others required the full 9 digits, if your records are harder to find. Either way, this is only for first time retrieval – and your Social Security number is not stored on their servers.

To keep your privacy safe, Credit Karma also boasts the following privacy, safety, and security measures:

  • Credit Karma uses 128-bit encryption to secure the transmission of information (note the “https” in the address bar).
  • Independently certified by digicert
  • Credit Karma will not sell or rent your personal information to third parties for any purpose.
  • Accounts are read only – you can’t execute transactions. And there is no credit card information entered.

Is Credit Karma a Scam?

is Credit Karma a scam?Before signing up, I wondered “Is Credit Karma a scam?”. But, after researching and using them for many years, I can tell you Credit Karma is not a scam. They are a legit company with a legit business model that has been around for years now.

Credit Karma is a digicert certified company. And through BBB (Better Business Bureau), they have a strong history of responses and complaint resolutions to customers. That is reassuring.

Power in numbers is reassuring as well. Credit Karma has over 40 million members and raised $368.5 million in funding.

I’ve never once been charged, never once had my identity stolen, or had any complaints of any kind in the years I have used Credit Karma.

How Accurate is your Credit Karma Credit Score?

A lot of people want to know if the scores you receive from Credit Karma are accurate. By “accurate”, I’m assuming they want to compare the Credit Karma credit scores to a FICO score (which is commonly used by lenders to judge your credit). I crosschecked. Your experience may vary, the but scores that I have received from TransUnion and Equifax through Credit Karma are usually within a handful of points of my FICO score. That’s less than a 1% spread – which is basically no difference when you are judged for a credit approval. The credit rating companies have gone out of their way to have similar rating models, and FICO uses TransUnion, Equifax, and Experian data to calculate their scores.

Credit Karma Review: Final Thoughts

Any honest Credit Karma review will talk about the cons. The only Credit Karma con I have is that there are a lot of offers in the interface when you log in to your account. It’s a minor annoyance, but this is how Credit Karma makes money, so I’ll take that trade-off vs. having to pay for the service. You are under no obligation to sign up for any offers.

All-in-all, Credit Karma is a super useful service that I think everyone should have in their financial arsenal. You’re basically getting for free what many other services like Equifax, TransUnion, and Experian are charging $15 or more per month for. And having used other credit score reporting service in the past, the nice graphical interfaces, report card, and Simulator tool make Credit Karma much more useful. I highly recommended their service to anyone and score it as a 5 out of 5 stars. Please share your Credit Karma review below.

Get a free Credit Karma account here.

Credit Karma Review
  • Price
  • Features
  • Safety

Credit Karma Review Summary:

You won’t find a financial service that offers as much value as Credit Karma, at no cost. Your free account gets you access to both TransUnion and Equifax credit scores and reports. On top of that, you also get free credit monitoring, credit tips, free tax filing, a free online savings account, and other perks. I consider Credit Karma to be an essential tool in the personal finance toolkit. And their member count validates this claim.

Get a free Credit Karma account here.


  1. Bob
    • Denise
      • Free Mee
        • Rose
          • nicole
          • skstars
          • Joshua Ferguson
    • Bob
    • Shaun
    • Deb
    • jas
  2. smedheat
  3. Will
    • Betty
  4. Richard
    • Ray Zinn
      • Betty
    • Betty
  5. Ray Zinn
  6. d brown
    • Ray Zinn
  7. Jesse K.
  8. Ray
    • Robin
  9. Ray
  10. Bruce
  11. Denise
    • Richard
  12. Denise
    • Ray
      • Denise
  13. Brad C.
  14. brittney
  15. Ray
  17. Jennifer Rouillard
  18. Jennifer Rouillard
  19. Donald
    • John
  20. shavonta
  21. Rick M.
  22. Fatine echenique
  23. Brian
    • Ray
  24. al
    • Ray
  25. Sharon
    • Ray
    • Ray
        • Ray
  26. Jeremy
  27. Robert
  28. Susan
  29. New CK User
  30. Coce
  31. Antonio Bellamy
    • Antonio Bellamy
      • Melissa
          • Antonio Bellamy
        • Antonio Bellamy
        • Antonio Bellamy
  32. Joanne
  33. Fay
  34. Mike Jones
  35. Poor To Good
  36. Lionel
  37. Selden
  38. Madam Val
  39. Curious Person
  40. Madam Val
  41. Selden
  42. Meg
  43. Lois Payton
  44. Mark
  45. Daniel
  46. Doris
  47. Barbara Crum
  48. J
  49. Sandra
  50. Barbara
    • BC9696
  51. BRUCE C
  52. Laurette
  53. Bob
  54. Debbie
  55. James
  56. Chad
  57. Deborah Ybarra
  58. Frankringer
  59. Jane
  60. Dondi

Join 10,000+ wealth builders. Get new articles by email, for free.

Thank you for subscribing!

Oops... Please try again.