Debt usage determines 30% of your credit score. The better you handle your debts, the better your credit score comes out. This is the goal of Credit Karma, a company based in San Francisco, that offers free credit scores for its consumers. The information from credit scores can guide Credit Karma users into better credit health by monitoring the effects of their financial decisions on their credit scores when the change happens, and adjust their actions accordingly.
To write Credit karma review, I signed up for their account. The process is extremely smooth. yes, there is a risk involved when you give out your social security number to a third-party who’ll store it in their database.
I couldn’t find any info on net about this score being stored in encrypted form, though I like it stored that way. Hackers can virtually crack any company database. When they get access to it, they would definitely try to sell it to scamsters and fraudsters. Who is turn would at least try to steal your identity.
I took a risk just to write credit karma review. To check how reliable is their service offering. The same way I did for Credit Sesame Review.
Credit Karma computes your TransRisk credit score from information from TransUnion, the TransUnion Auto Insurance Risk Score, and the Vantage Score. This service Credit Karma gives for free – so you can see the updated credit score at any given period.
The TransUnion figure is the degree of possibility that you will be delinquent in your loans, or be unable to pay the complete debt at all. This data is based on historical trends and what you as a lender, has behaved with your debts. Upon signing up with Credit Karma, you will be able to see your history daily, giving you more data on how to behave in the future.
To Credit Karma’s credit and professionalism, the computed credit scores are often close enough to the official FICO scores. Some margin of error is allowed, so the Credit Karma scores may not portray the exact picture – but for a free tool, Credit Karma does fine.
What is refreshingly appealing with the Credit Karma free service is that Credit Karma does not keep any of your private information. The information you give may be used for further analysis by Credit Karma, such as your credit score history for your TransUnion score, but your private information, Credit Karma does not store on its servers. It is a purely online free service with no grand designs to hold on to your information for other purposes than for you to bring your credit score to better financial states.
The Business Model
Credit Karma does not earn from your private information. The business model of Credit Karma is to send targeted advertisements in your direction, and from the advertising proceeds, Credit Karma is able to give you the free credit scores.
So look at it this way. The close the Credit Karma estimate is to your FICO credit score, the more often you will return to the Credit Karma website. The more often you go to the website, the more advertisements Credit Karma will send you. And with more targeted advertisements, the more Credit Karma earns, so that even better service can be given to you.
Credit Karma is a performance-based website offering a free service. The better Credit Karma guides you to better financial health, the more it earns. The poorer its service, the less rewards it makes. This arrangement between Credit Karma’s service and revenues is ideal – for certain, no other vested interests can come between you and Credit Karma’s desire to get you to the credit score that you want. Your relationship with Credit Karma is free, the same way Credit Karma offers the service for free, and let the advertising keep
The benefits of Credit karma
You can check your credit score as many times a day as you wish. It’s free to use. There is a simulator which you can play around and simulate hypothetical situation and measure the impact to you credit score.
It clearly demonstrate how paying off your credit card each month increases your credit score. It will also demonstrate how app;lying for a new credit card reduces your score.
We are giving a “Caution” rating on credit karma. apply your own logic before giving them your social security number. It hs a risk of theft as I told in the first section of this post.
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