How Long Has Credit Karma Been Around?

Credit Karma Been Around

Credit Karma, an Intuit company (Nasdaq: INTU), is the pioneer of free credit scores. Founded in 2007 by Kenneth Lin, the company is now used by 130 million members across the United States and U.K, including half of all U.S millennials. Credit Karma provides free and personalized credit score and report monitoring, identity protection, credit card recommendations, auto insurance quotes and checking accounts through its bank partner, MVB Bank, Inc., Member FDIC. Credit Karma’s products are built to help people reach their financial goals by making it easier and more affordable to get approved for credit cards, save money with better car insurance rates and even pay down debt on TikTok and Instagram.

Kenneth Lin and cofounders Ryan Graciano and Nichole Mustard start Credit Karma with the idea that consumers should have access to their personal credit data for free. They raise their first round of venture capital funding and open an office in San Francisco’s South Park neighborhood. Ryan leads the technology team, coding by day and managing servers by night. Greg Lull, a childhood friend of Kenneth’s who grew up in Las Vegas, joins as the first head of marketing to shape a helpful and approachable brand.

In 2019, Credit Karma launches a new credit scoring model to give members more clarity and accuracy. The new scores are based on the VantageScore and use more information than the previously available Experian and TransUnion models. Credit Karma also starts offering members a new way to view their credit reports that makes it easy to spot errors. If there are errors on your credit report, the Direct Dispute(tm) tool makes it simple to dispute them and help you get your data in order.

How Long Has Credit Karma Been Around?

The company adds insights from the Credit Karma app that helps members understand their credit and how to improve it. For instance, the app tells you if you’re using too much credit, which could hurt your scores. It also shows your average credit age, which is a good indicator of your financial health. It’s a handy tool that can be a little intimidating to navigate at first.

In 2020, financial powerhouse Intuit, which owns TurboTax and other consumer finance services, acquires Credit Karma. The acquisition gives the company access to more information about its members, including their income and ability to make loan payments, which can enhance its credit-card recommendations.

It also enables it to match you with lenders who offer the best chances of getting a loan or mortgage based on their underwriting algorithms. Credit Karma can also help you with the application process by providing a ballpark estimate of your approval odds.

However, the app doesn’t guarantee that you will be approved for loans or receive specific offers from lenders. The estimates are based on the likelihood that you’ll follow the same pattern as other people who are in your financial ballpark, which isn’t always accurate. Regardless, it’s still worth checking your credit scores and reports on a regular basis.