Credit Karma is an American company based in Michigan, which was formerly known as Quicken and is now an entirely separate brand of Intuit. It offers its services through an interactive website that allows its customers to compare their scores with others. The company was founded by Keith Baxter, who also serves as its executive director.
One of the unique features offered by credit karma is its scoring model, which is different from the two other leading companies in the market. The scoring model of credit karma utilizes a mathematical algorithm to determine your individual credit scores instead of using the more traditional method of the FICO (Free Equifax Credit Report) method. Although credit karma's model has proven to be more accurate than the older FICO model, the company does not recommend its use for immediate credit repair purposes, as it takes a while to develop and become completely accurate.
Using credit karma for immediate credit repair purposes should only be used by people who have relatively good credit scores already. Even with the new and improved scoring models, your score may still be lowered for some errors or inaccuracies found on the report. These errors will cost you money, so you are better off finding and removing these errors immediately. To remove these errors, you will need the services of credit bureaus such as Transunion and Experian. If you have not done so already, you should request a copy of your credit report and check to see if there are any errors on it.
Using credit karma for your credit score may also come with the risk of having your score lowered more than once. There is not guarantee that every time you apply for credit you will get it. Although the company claims that their algorithms are error-free, there is always the possibility that they have made an error in the past. Using free credit scores to check your score can be risky as they do not have the same guarantee as the ones you get from credit bureaus. For instance, a credit report from Experian cannot be trusted as a free score, because they do not provide any guarantee in terms of the accuracy of their information.
There are many companies which provide free credit scores on the internet these days. They claim to do so to assist you in determining your credit scores. However, most of these sites are just scams and will only get you to a page with free offers. When you get there, you will only be asked to give your credit information once, and then they sell your personal finance information to others for their own profit. This may also include personal finance tips and tricks which they claim to be able to give to you.
In summary, it is important to have your credit information from at least three of the major consumer credit reporting agencies in order to avoid any identity theft related to it. Free credit karma is also helpful in giving you a general idea of how to improve your credit scores. These are just a few things that you should know about credit karma, related services, and free credit reports. In my next articles, I will go into more depth on these topics.