Why is Credit Karma Free? Learn What You're Missing Out On!
By Kevin Mercadante
Credit Karma is virtually unique among credit reporting services, because it really is a free service. You get your free credit score and your free credit report, and no credit card is ever required or even requested. And once you sign up for the service, you can return as often as you like to monitor your credit.
Is Credit Karma Free - Aren’t There Strings Attached?
This is something else about Credit Karma - there really are no strings attached. Most credit sites that offer “free” anything, will usually offer you the service either for a very limited amount of time, or contingent upon you purchasing some other service they provide. But you will experience with none of that with Credit Karma.
The people behind Credit Karma believe that free access to your credit report and credit score are fundamental consumer rights.
And they believe that a credit report is too important to be restricted from the very consumers that it affects. Your credit report will be pulled virtually any time you apply for a job, a mortgage, an apartment, a car loan, a credit card, and even a new cell phone plan or a life insurance policy. Having access to your credit report at any time using the ability to make corrections anytime you need to.
In that spirit, Credit Karma provides you with everything related to your credit profile.
You Get a Free Credit Karma Credit Score
Credit Karma allows you to monitor your Credit Karma credit score on a continuous basis. That’s important because significant changes in your scores not only indicate derogatory credit information, they can also alert you of identity theft.
Since there are no fees - ever - you will feel safe monitoring your credit score as needed. Credit Karma provides Nightly Credit Report Monitoring, and even Email Alerts and Notifications in the event that there is a significant change in one of your scores.
They also highlight important items on your credit report and give you background information to help you understand exactly what you’re looking at. That’s important, since credit reports contain information that is usually well understood only by people who work in the industry. It’s a perfect system for someone who knows that credit is important, but doesn’t necessarily understand the technical details.
You Get Free Credit Karma Credit Reports
While many credit reporting services will provide your credit scores, Credit Karma also provides your credit report - also free. It’s all part of the package. You simply complete the registration, which takes only a couple of minutes, and you can get your credit report. And not just any credit report, but a TransUnion credit report, and they’re one of the Big Three credit reporting bureaus, along with Equifax and Experian.
Your credit report is updated on a weekly basis. You can pull it up any time you want, and also print a copy any time you need one. And if there is any information reported that requires your attention, Credit Karma, will provide suggested next steps for you to take.
You Get a Whole Bunch of Other Stuff From Credit Karma
If Credit Karma provided you with just your credit score and credit reports that would be plenty. But they also provide various tools that will help you to manage your credit more effectively.
Some of those tools include:
- A Home Affordability Calculator
- A Debt Repayment Calculator
- A Simple Loan Calculator
- An Amortization Calculator
They are also developing their own Credit Score Simulator. This will be an incredibly useful for that will allow you to see how taking certain steps with your credit will affect your credit score. This will be especially valuable in helping you to improve your credit score going forward.
So Why is Credit Karma Free?
This is a question that puzzles a lot of people. If most every other credit report service requires a subscription fee in the neighborhood of $20 - every month - then why is Credit Karma free? After all, they must have bills to pay, like everyone else, right?
Credit Karma is free because they use an advertising model to fund their operation. Third parties, in the credit industry, advertise on the site, and that provides the revenue that keeps Credit Karma running.
Free services, especially high quality ones like Credit Karma, draw a lot of people to the site. Whenever you go to the site and pull your credit report or credit score, Credit Karma will show personalized offers from advertisers, which are based on your credit profile. You’re free to take advantage of any third party offers you like - or not. But the advertisers are why Credit Karma can offer you so much access and information absolutely free.
Check out Credit Karma, and sign up for the opportunity they provide to monitor and improve your credit. Never before in the credit universe has so much been offered to so many at so little cost - like free!
About Kevin Mercadante
Kevin Mercadante is a freelance professional personal finance blogger, and the owner of his own personal finance blog, OutOfYourRut.com. He has extensive backgrounds in both accounting and the mortgage industry. Follow Kevin on Google+.