Credit Karma

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Credit Karma, Inc.
Type Private
Industry Personal finance, Software
Founded 2008[1]
Headquarters San Francisco, California
Key people Ken Lin, Founder and CEO
Products credit scores

Credit Karma is a free web-based credit and financial management service for US consumers. Founded in 2007, it provides free credit scores and credit monitoring.

Credit Karma provides additional credit tools with the Credit Report Card, which summarizes a consumer’s credit report into components graded with an A-F letter grade, the Credit Score Simulator, which simulates the effect of certain financial actions on credit scores; and credit monitoring, which sends an email alert when something important changes in a consumer’s TransUnion[2] credit report.

In addition to credit scores, Credit Karma also offers financial account monitoring through account aggregator service Yodlee. This service allows consumers to track their bank, credit card, savings and loan transactions and balances in Credit Karma’s interface.

Founder and investors[edit]

Kenneth Lin, who previously worked with E-Loan and Upromise, launched Credit Karma in February 2008.[1] The start-up was primarily funded by investors Chris Larson, CEO of Prosper, and Mark Lefanowicz, former president of E-Loan.[3] In 2009, Ron Conway, Dave McClure, and QED Investors made additional investments in Credit Karma.[4] In 2013, Credit Karma secured $30 million in Series B funding from Ribbit Capital and Susquehanna Growth Equity.[5] In 2014, Credit Karma secured $85 million in Series C funding from Google Capital and Tiger Global Management. [6]

Credit Karma’s credit scores[edit]

Credit Karma provides four credit scores from TransUnion: the TransUnion New Account Score, the VantageScore, the TransUnion Auto Insurance Risk Score and the TransUnion Home Insurance Risk Score.

The New Account score model ranges from 300 to 850, which is the same scale as the FICO Score. In January 2011, Credit Karma began providing the VantageScore and Auto Insurance Risk Score.[7] In April 2013, Credit Karma began offering TransUnion’s Home Insurance Risk Score along with the launch of financial account monitoring.[8]

Consumers can update their credit scores on Credit Karma once a week.

Business model[edit]

Credit Karma is free to consumers.[9] Revenue from advertisements offsets the costs of free credit score tracking and financial monitoring.

See also[edit]


  1. ^ a b Irby, LaToya (2008-09-22). " Offers Free Credit Score". Archived from the original on 2012-01-12. Retrieved 2010-06-24. 
  2. ^ "Credit Karma Free Credit Score Service Can Help You In This Economic Environment: An Interview with CEO Ken Lin". The Sun's Financial Diary. 2009-03-11. Retrieved 2010-06-24. 
  3. ^ Levinson, Rick (2009-06-09). "Credit Karma Introduces Free Credit-Card, Debt-Tracking Tool". Bloomberg L.P. Archived from the original on 2012-01-12. Retrieved 2009-07-27. 
  4. ^ Kincaid, Jason (2009-11-04). "Credit Karma Raises $2.5 Million To Take The Mystery Out Of Credit Scores". TechCrunch. Archived from the original on 2012-01-12. Retrieved 2010-09-02. 
  5. ^ Credit Karma Secures $30 Million in Series B Funding:
  6. ^ Shieber, Jonathan (2014-03-12). "Credit Karma Confirms New $85M Financing Round Led By Google Capital". TechCrunch. Retrieved 2014-05-21. 
  7. ^ "Credit Karma Launches Two New Free Scores for Consumers". Marketwire. 2011-01-06. Retrieved 2011-03-04. 
  8. ^
  9. ^ Retrieved "Credit Karma FAQ: Charge" (11-10-2008)

External links[edit]