What is Credit Karma in trouble for?
In September 2022, the FTC announced an enforcement action against Credit Karma, alleging that the company used claims that consumers were “pre-approved” for a credit card or had “90% odds” of approval to entice them to apply for offers that, in many instances, they did not qualify for.
Millions of people use Credit Karma to track their credit scores. The company is highly transparent and provides its services through VantageScore. Thus, it offers a reliable snapshot of your current credit status. You can also use Credit Karma to spot inaccuracies in your credit report.
Credit Karma goes the extra mile when it comes to the safe-keeping of our members' personal information. We use 128-bit or higher encryption to protect during the transmission of data to our site and encrypt data at rest. If we suspect any suspicious activity on your account then we'll alert you as soon as possible.
How much money will I get? That depends on how many people file claims, according to the FTC. However, if the total number of people estimated to be eligible were to file claims, that would result in payments of about $6 each.
You get access to your credit scores and reports from TransUnion and Equifax, with daily updates. We use our love of data to analyze your credit profile and make product recommendations that could help you save money. If you get a product through one of our recommendations, the bank or lender pays us.
Neither type of credit score is inherently better than the other, and most lenders apply proprietary modifications to whatever scores they use anyway. That means you don't need to seek out a particular Vantage score or FICO score because you won't find the exact score you're being judged with regardless.
Each credit scoring model has its own formula that may take into account different factors of your credit report. And each scoring model weighs different credit factors slightly differently. When you apply for a financial product the lender may be looking at different credit factors to make a lending decision.
Intuit acquired Credit Karma in 2021. Credit Karma has more than 120 million members in the U.S., but Net Worth is being rolled out to initially target U.S. consumers with a credit score of 720 or above, with the goal to expand to a larger population over time.
As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.
We don't sell your information
We don't sell your personal information to or share it with unaffiliated third parties for their own advertising or marketing purposes. See more in our privacy policy.
Who is suing Credit Karma?
The FTC alleged that many people who got “pre-approved” credit offers from Credit Karma were not approved. As a result, they wasted time applying and sometimes saw their credit scores drop when their applications were denied.
The settlement stems from a September 2022 FTC investigation into Credit Karma's alleged use of claims that people were pre-approved and had "90% odds" of approval. The claims were made in an effort to entice people to apply for offers that in many cases they did not qualify for, the FTC said.
All personal information must be visible and match what we have on file for your account: Full name. Social Security Number (SSN)
The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
They may differ by 20 to 25 points, and in some cases even more. When Credit Karma users see their credit score details, they are viewing a VantageScore, not the FICO score that the majority of lenders use. A VantageScore has the same credit score range as FICO, and uses some of the same information as a FICO score.
FICO 8 scores range between 300 and 850. A FICO score of at least 700 is considered a good score.
Your score falls within the range of scores, from 580 to 669, considered Fair. A 600 FICO® Score is below the average credit score. Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications.
The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.
What's the difference between FICO score and credit score?
Is "credit score" the same as "FICO® score"? Basically, "credit score" and "FICO® score" are all referring to the same thing. A FICO® score is a type of credit scoring model. While different reporting agencies may weigh factors slightly differently, they are all essentially measuring the same thing.
Credit Karma uses a different scoring system than the one mortgage lenders use. There are two main scoring systems: FICO – it was created in the 1950s and is used by mortgage lenders. VantageScore – it began in 2006 and is what Credit Karma uses.
Credit Karma is an American multinational personal finance company founded in 2007. It has been a brand of Intuit since December 2020.
Credit Karma is not a bank. We partner with MVB Bank, Inc., Member FDIC, to provide banking services supporting Credit Karma Money Spend and Credit Karma Money Save accounts. When you open a Credit Karma Money Spend account, your funds will be deposited into an account at MVB Bank, Inc. and its deposit network.
Financial platform provider Intuit has agreed a $7.1 billion deal to acquire Credit Karma, the consumer technology platform with more than 100 million members in the US, Canada and the UK.
