How Does Credit Karma Make Money?

CREDIT KARMA WEBSITE

Credit Karma is a service that allows you to improve your financial wellbeing and credit worthiness.  

CREDIT KARMA WEBSITE

Its free credit scoring and monitoring reports became one of the key growth pillars when the service first launched back in 2008.

CREDIT KARMA WEBSITE

The founders, led by CEO Kenneth Lin, raised over $868 million in funding throughout its existence. 

KENNETH LIN'S TWITTER

Credit Karma’s continuous success prompted software giant Intuit to spend $7.1 billion in 2020 to acquire the service. 

But how does Credit Karma, which is completely free to use, actually make money? 

Bank and lending partners pay Credit Karma a fee whenever you sign up or click on one of the offers that it promotes.

REFERRAL FEES

CREDIT KARMA WEBSITE

Credit Karma offers a debit card to account holders.  It collects interchange fees whenever users pay with the card. 

INTERCHANGE FEES

CREDIT KARMA WEBSITE

Unused cash held within your account is deposited into interest-bearing bank accounts.

INTEREST ON DEPOSITS

CREDIT KARMA WEBSITE

Swipe up to read the full story

CREDIT KARMA WEBSITE