HOW CREDIT KARMA MAKES MONEY
Credit Karma offers consumers access to credit ratings and other credit information from TransUnion and Equifax, as well as tools for consumers to improve their rating.Users can access Credit Karma information for free and as often as they want, without registering with a credit card.In contrast, the three major credit bureaus provide consumers with complete credit rating information for free only once a year, charging for additional requests. Credit Karma makes money by recommending financial products, such as credit cards, based on your credit information and receives a commission if you buy the recommended product. Credit Karma has recently expanded to offer free tax return assistance, as well as a high-yield savings account through a partnership with MVB Bank.
Key findings
- Credit Karma offers free access to TransUnion and Equifax credit data, as well as offers tax return assistance and other services.
- It earns money by receiving a commission every time a user purchases a product or service that they recommend.
- Credit Karma is a fintech startup that specializes in providing credit information.
- On December 3, 2020, Intuit announced the completion of its acquisition of Credit Karma.
Credit Karma Industry
Credit Karma is a financial services company services.Unlike some companies in the industry, Credit Karma and its direct competitors do not sell your data to third parties.In addition to providing credit ratings, Credit Karma also guides consumers on what to do next after gaining access to their initial credit information. For example, a company recommends credit cards tailored to each consumer based on the likelihood of approval. It also provides users with recommendations for individual individual, residential, and auto loans based on income and credit ratings.
Credit Karma's competitors include NerdWallet, Credit Sesame, and Mint, which also offer free credit rating information and financial instruments.
Fundraising and finance
Credit Karma includes all of the more than 110 million people in the U.S., Canada, and the U.K. as of February 2021, according to CrunchBase, Credit Karma raised $ 868 million over 8 funding rounds, the most recent of which was in March 2018.The company was then valued at $ 4 billion. Its leading investors are Silver Lake Partners and SV Angel.
History and leadership
San Francisco-based Credit Karma was founded in 2007, and the first free credit ratings were provided in 2008. The company was founded by Ken Lin, the current CEO, who early in his career worked for E-Loan, an online lender specializing in debt consolidation, and UPromise, a subsidiary of Sallie Mae's student loan service, which implements a customer loyalty program focused on saving for college and paying off student loans.
Recent improvements
On December 3, 2020, Intuit Inc. (INTU), the maker of Turbotax and QuickBooks, announced the completion of its acquisition of Credit Karma for approximately $ 3.4 billion in cash and $ 4.7 billion in stock and rewards. Intuit first announced its agreement to purchase the company on February 24, 2020, for $ 7.1 billion in cash and stock.
In October 2020, Credit Karma announced that it will start offering current accounts to members who already have savings accounts with the company.
How Credit Karma Communicates Diversity and Inclusivity
As part of our efforts to raise awareness of the importance of diversity in companies, we invite investors to take a look at Credit Karma's transparency and commitment to diversity, inclusivity, and social responsibility. We examined the data published by Credit Karma. This shows that Credit Karma does not disclose any data about the diversity of its board of directors, C-Suite, general management and employees in general. It also shows that credit karma doesn't reveal itself by race, gender, ability, veteran status, or LGBTQ + identity.
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