Credit Karma ($4Billion): How Credit Karma Makes Money

Credit Karma provides customers with access to credit scores, other credit data, and methods to raise their rating from TransUnion and Equifax.

Users are not need to register with a credit card in order to access Credit Karma’s information for free as often as they like. The three major credit agencies, in contrast, only provide individuals access to their full credit scores for free once a year and charge a fee for any requests.

Based on your credit information, Credit Karma recommends financial goods like credit cards and earns a commission if you decide to purchase the suggested item.

Through a collaboration with MVB Bank, Credit Karma recently increased its services by providing free tax preparation assistance as well as a high-yield savings account.

 

Credit Karma’s Industry

A fintech services firm is Credit Karma. Contrary to certain businesses in the sector, Credit Karma and its direct rivals do not sell your information to outside parties. After a customer has seen their initial credit information, Credit Karma advises them on what to do next in addition to providing credit scores.

For instance, the business suggests credit cards based on each customer’s likelihood of approval.

Additionally, based on their income and credit scores, it offers consumers advice on specialized personal, house, and auto loans.

NerdWallet, Credit Sesame, and Mint are some of Credit Karma’s rivals because they also provide free credit score information and financial tools.

 

Fundraising and Financials

In the United States, Canada, and the United Kingdom, Credit Karma has more than 110 million users as of February 2021. Credit Karma reportedly raised $868 million over 8 funding rounds, the most recent of which was in March 2018. The corporation was valued at $4 billion at the time. SV Angel and Silver Lake Partners are two of its principal backers.

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History and Leadership

Credit Karma, situated in San Francisco, was established in 2007 and provided its initial free credit scores in 2008.

The company was founded by Ken Lin, the current CEO, who spent the early years of his career at UPromise, a subsidiary of student loan service Sallie Mae, which runs a customer loyalty program centered on saving for college and paying off student loans, and E-Loan, an online lender specializing in debt consolidation.

 

Recent Developments

Intuit Inc. (INTU), the company behind QuickBooks and Turbotax, said on December 3, 2020 that it had successfully acquired Credit Karma for a price of roughly $3.4 billion in cash and $4.7 billion in stock and equity awards. 12 On February 24, 2020, Intuit made its initial announcement that it had decided to buy the business for $7.1 billion in cash and equity. 13

Credit Karma said that it would start providing checking accounts to members who currently have savings accounts with the company in October 2020.

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How Credit Karma Reports Diversity & Inclusiveness

We give investors a peek into Credit Karma’s openness and its dedication to diversity, inclusivity, and social responsibility as part of our mission to raise investor understanding of the value of diversity in businesses. We looked at the data Credit Karma makes available. It demonstrates that Credit Karma withholds all information regarding the diversity of its board of directors, C-Suite, general management, and overall workforce. Additionally, it demonstrates that Credit Karma hides its own diversity in terms of ethnicity, gender, ability, veteran status, and LGBTQ+ identity.

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Quick Summary: Credit Karma Existence

  • Credit Karma provides free access to TransUnion and Equifax credit reports in addition to other services like tax preparation help.
  • It earns money by getting paid each time a user takes advantage of one of its recommendations.
  • A fintech business named Credit Karma specializes in giving out credit information.
  • On December 3, 2020, Intuit declared that the acquisition of Credit Karma was complete.

 

How Do Credit Karma Make Money?

Credit Karma generates revenue by showing members only relevant adverts.

 

Last Updated on February 7, 2023 by NetworkPalava Admin

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