Credit Karma is a free credit monitoring and financial management service that allows users to track their credit scores and monitor their credit reports for any changes or errors.
This free credit monitoring and financial management service is your one-stop-shop for tracking your credit score, monitoring your credit reports, and getting a personalised credit card and loan recommendations. With these tools, you can access low-interest loans, grow your wealth, and get the most out of everything you do financially.
Gone are those days of spending money to check your credit score via credit bureaus. Whether you want to improve your credit score or manage your finances more effectively, Credit Karma Canada is the right tool.
This comprehensive review will provide an overview of Credit Karma, including its features, benefits, drawbacks, and many more. Read on for our in-depth review and find out!
Pros
- It’s completely free
- You can count on their excellent user experience
- They take their time to explain the rationale for credit scores and reports.
- Recommends solutions for the problem
- No-fee checking account
- Great mobile apps
Cons
- The financial product recommendations can be distracting
- It doesn’t let you import transactions
What is Credit Karma?
Founded in 2007 by Kenneth Lin, Ryan Graciano, and Nichole Mustard, Credit Karma is a multinational fintech with over 100 million members worldwide. It recently opened its doors to Canadians in 2016. It is available in most provinces and territories except Yukon, Quebec, Northwest Territories and Nunavut.
Credit Karma uses TransUnion and Equifax to provide accurate credit scores and credit reports to its US, Canada, and UK users. Credit Karma is free to use and offers Canadians free credit report monitoring.
Credit Karma also provides your credit report card that breaks down the factors affecting your credit scores, such as on-time payments, credit utilisation (how much you owe compared to how much credit you have available), number of accounts, length of credit history, recent inquiries, the total debt owed, and derogatory marks (late payments or collections).
Key Features of Credit Karma
1. Free Credit Score Monitoring Service
Credit Karma allows you to check your credit score for free and access your credit report every week. Also, you can keep track of their credit progress on their dashboards. All for free.
2. Personal Loans
Credit Karma collaborated with a Canadian loan search engine called LoanConnect to link its members to multiple loan options, such as short-term loans, instalment or long-term loans, and lines of credit.
3. Credit Cards
In addition to different loan options, Credit Karma offers a range of credit cards such as secured credit cards, unsecured credit cards, bad credit cards, and student credit cards (in addition to others).
However, the credit card selection is based on individuals’ credit history (credit score and report).
How Does Credit Karma Canada Work?
The credit scores and reports you see on Credit Karma come straight from TransUnion and Equifax, two of the three major consumer credit bureaus. It accurately reflects your credit information as reported by those major bureaus.
The scores are actual credit scores gotten from two of the major consumer credit bureaus, not just estimates of your credit rating. This is one of the reasons why Credit Karma requests your Social Security number and other personal information to create a special Credit Karma account so that they can match you up to what the bureaus have on file for you in particular.
Credit Karma isn’t a credit bureau or a credit reporting establishment. They don’t gather information from creditors, and creditors don’t send information directly to Credit Karma.
Is Credit Karma Good for Canadians?
The truth is that Credit Karma can’t fix your credit. It can only help you keep an eye on your credit and give you recommendations that may be useful.
So, getting a free credit monitoring service like Credit Karma isn’t necessary. Some lenders and financial institutions will provide free access to your credit report when you subscribe to their services.
It is worth mentioning that if you are working towards applying for a home/vehicle loan or boosting your credit to help you get the very best car insurance rates, having constant access to your credit score can be helpful.
Credit Karma Canada only keeps you up to date on your credit score, informs you of potential credit breaches, and provides tools that assist you in finding and securing the best credit card, loan, vehicle, and auto insurance deals. The best part is that it does all of this for free!
Is Credit Karma Safe & Legit?
There is no 100% guarantee of safety when you’re online, but Credit Karma has a pretty good track record for protecting people’s information.
Credit Karma uses 128-bit or higher encryption to protect the transmission of your data to their site. They do not share your personal information with unaffiliated third parties for marketing purposes. You don’t have to enter your credit card information or Social Insurance Number.
The only time you’ll receive emails from Credit Karma will probably be about credit card offers, which you can choose to ignore.
So yes! You don’t have to be anxious. However, the internet is the internet, and anything can happen. There have been reports of credit bureaus being hacked in the past, so there are no iron-clad guarantees anywhere.
Does Credit Karma Hurt My Credit Score?
No, Credit Karma doesn’t hurt your credit score. Credit Karma only performs soft credit checks, which are mostly done for non-lending purposes.
If you only use Credit Karma to look at your credit score and reports, it won’t count against your credit score.
However, if you do anything that requires hard credit checks, it would count against you in terms of credit score.
Credit Karma vs Borrowell
Credit Karma and Borrowell are two popular credit monitoring services available in Canada. While both offer similar services, some differences set them apart.
Credit Karma offers free credit monitoring and financial management services, allowing users to track their credit scores, monitor their credit reports, and receive personalised credit card and loan recommendations. It also offers resources for financial education, making it a great tool for those looking to improve their financial literacy.
Borrowell, on the other hand, offers free credit scores and credit reports, as well as personalised recommendations for financial products such as credit cards, loans, and mortgages. Additionally, Borrowell provides free credit monitoring and alerts for user credit report changes.
One key difference between the two services is that Credit Karma uses TransUnion credit reports, while Borrowell uses Equifax credit reports. Users may see slightly different information on their credit reports depending on their service.
Credit Karma and Borrowell offer valuable tools for monitoring and managing your credit and finances. The best choice for you will depend on your individual needs and preferences.
RELATED: Borrowell Review 2024: Get Free Credit Report & Personal Loan Comparison Tool
Final Thoughts on Credit Karma Canada Review
Credit Karma Canada is a highly rated, free credit monitoring and financial management service for Canadians.
Its user-friendly interface, personalised recommendations, and reliable credit score monitoring can help you keep a close eye on your credit scores, detect potential fraud, and identify areas for improvement.
While it cannot fix credit scores, it’s a great option for those seeking a free credit monitoring service. The Credit Karma app makes tracking and improving your credit score easy.
Credit Karma Canada is a great option if you’re looking for a free credit monitoring service. In case of irregularities, reach out to Equifax and TransUnion for assistance.
FAQs on Credit Karma Canada Review
Will Using Credit Karma Lower Your Credit Score?
No, it won’t. Credit score inquiries you make for yourself are regarded as soft inquiries and do not affect your credit score in one way or another.
Does Credit Karma Require a Credit Card To Sign Up?
No, it doesn’t. Your credit card information is not required, and there is no fee for accessing your credit score in Canada or anywhere else.
Do You Need Your Social Insurance Number To Check Your Credit Score?
No, you don’t. Giving Credit Karma your social insurance number (SIN) is optional, and you can access your free credit score even if you do not make it known during the sign-up process.
What is Credit Karma Canada’s Phone Number?
They currently do not offer phone support. If you want to reach them, you can submit your questions through their website support page, and they will respond to you by email.
