Description: This is an article about credit karma login my account, which shows you how good the credit Karma is and whether it is right for you. Everyone deserves to feel confident about their finances. Credit Karma’s job is to give you the tools, the education and the opportunities you need to make real, meaningful progress.
Today we’re talking about Credit Karma, it is the number one tool that people use to track their credit, I want to talk about what it is, what they do, whether they do it well and whether you should use them, I will be totally honest with you.
I do not use Credit Karma, it’s not to say that I think they are a bad company, I will explain why I don’t use them, hopefully this article will help you decide whether you should use them or not, let’s start off with what it is and what they do.
99% of the people that use Credit Karma likely use them to track their credit score, Credit Karma’s entire business models are complicated, tracking your credit isn’t easy, we will help you monitor your credit scores, side note they only use a transunion and equifax, but we will monitor your credit scores and we will show you where your credit scores stand.
They will do it for free, you don’t have to pay anything for them, that’s a cool business model, everyone should monitor their credit, I’ve made a video in the past, I talked about how important it is, but it’s a wonderful thing to know that you have good credit or it’s a smart thing to know that you have bad credit.
You need to start working on it to get it built up because it has huge financial ramifications on you, they help you monitor your credit, they do it at absolutely no expense to you, that’s not to say that they don’t make money because they do.
If you go to their site, they say that there’s no cost for you to use the service, we make money, let’s say you don’t have a credit card at all, Credit Karma may say that your credit score is round here because you have no issue, you have no revolving trade lines that could potentially help build your score, use one of these credit cards, we’ve allied and partnered up with this institution, they will hopefully help you get a credit card.
If you get a credit card through this company, it makes a commission, that’s how they make money, you don’t have to pay them anything, but at the end of the day if you get a financial service or product with one of their partners, they make a commission, that’s how they make money.
It is not a bad thing, it doesn’t cost you anything, but I would also say look at some of the partners, a lot of the interest rates that they have or at least what I saw got high, but you do not have to pay anything to use them, if you happen to buy a product through one of their partner institutions, they make commissions, that’s how they make money.
The second thing is about whether they do it well, it is the service that they provide does well, in my opinion not so much, most people use Credit Karma to track their credit score, that’s the reason why you go there, it’s a free service, they track your credit score, but in my experience that score that they show you is inaccurate.
I’ve done thousands of loans at my credit union, so many times I’ll ask the members ahead of time if they know where their credit stands roughly, because if you know where your credit stands, I can tell you what the rates would be before I submit anything.
If you tell me that you want a car loan, your score is a 646, you want to finance it for 47 months, I’ll tell you that your interest rate is three point one five percent, you don’t have to apply for anything, I can tell you what the rates are.
If you like it, it is good, if you do not like it, you don’t have to do anything, it benefits people to know what their credit is before they apply for a loan, but when I ask that member if he knows where his credit stands, he says that I use credit Karma, my scores is 692, but I have to say that that’s not your score.
They tend to be off, I’m talking about plus or minus thirty points, that’s a huge swing sixty points, if you say that your credit score is a 690, that would get you a two point two percent auto loan, then you’re feeling good, what if they’re 30 points off and your score is 660, your rate could be four percent, that’s double the rate that I originally quoted you.
Because you assume that your credit score is based on credit Karma’s model, but they’re typically inaccurate, it’s very rare for me to see them be totally right when it comes to credit, I’d appreciate it even if they were plus or minus two or three points, that wouldn’t be a big deal.
But when you’re off as much as they are, it doesn’t do you any good, the whole business model they have is to say that they doesn’t cost you anything, but we will monitor your credit and tell you what that is for you, who cares if it’s free, if it’s wrong or why I would want that information.
I’m not sure that they do what they do well, because they’re inaccurate, I don’t know if I’m a fan of the institutions they’ve partnered up with, however, the one thing that perhaps is a silver lining is that a lot of the times what they will do is if your credit score has gone up or down due to this reason, they’re trying to educate you as to what affects your credit score, I appreciate that.
If they say that your credit score went down because you’ve utilized too much of your credit card limit, they’re teaching you capacity ratio and utilization ratio, don’t spend too much on your credit cards because it could negatively impact your score.
Maybe you recently closed out a trade line, they’ll say that your score went down because you closed out a trade line which has been helping you so far or maybe you’ve paid off a credit card and your score went up, I appreciate the fact that they’re educating people on what affects credit, I will give them the thumbs up on that.
Lastly here’s the question, should you use them? I can’t tell you whether you should use them or not, but what I will share with you is why I don’t use them, it’s not because they’re a bad company, it’s not because their scores are inaccurate, it’s not because I don’t like the people they partner up with, the main reason why I don’t use them is that they’re redundant.
I made a video a little while back that talked about why I use my Capital One credit card, this is not an endorsement to say to get a capital one card, but they have a built-in tracking record that does essentially what Credit Karma does.
It gives me a snapshot of where my credit should stand, when it comes to the score, it’s built in, I don’t want to give another company my social security number, my name, my address, I don’t want anyone else monitoring my credit, I use this company for my credit card.
They do the same exact thing Credit Karma does, I might as well stick with them, there’s no point in me using that, what I’m trying to say is that if you already have a credit card or a car loan with a bank or a credit union, they’ve already got their own credit tracking, you can find out through them roughly where your credit score stands.
If there’s any other way for you to find out where your credit stands through any services you already have and if they offer you that, I don’t know if you would need another service, it doesn’t make any sense to me, but what I would like you to do is if you use Credit Karma, comment below, tell us what your experience has been with them.
I don’t use them for the reasons that I said, but if you use them and you’ve had good experiences with them, we want to be fair to every company, we want to grow this community and help each other out, if you use them, you’ve had positive experiences, maybe you’ve applied for a loan and Credit Karma is exactly very accurate when it comes to your credit score, comment below.
You will help people out along the same lines, if you use them and you apply for a car loan and you have a similar experience to what I’ve normally had where they’ve been often inaccurate, comment below, we want to make sure that people understand what they’re getting into before they sign up for some service that may not be too beneficial for them.
Thanks for reading, I hope you learned something new from it and you are able to strengthen your financial position, I’m going to keep coming out with more articles, please stay tuned, comment below, I hope that you’ll have a good day, take care.