Are Credit Cards Beating Credit Karma at Its Own Game?

Credit Karma versus credit cards for free scores
Credit Karma is currently the king of free credit scores, but that crown may be in jeopardy. Major credit card companies, such as Discover, Barclaycard and First Bankcard are now offering free credit scores to their customers as part of their monthly billing statements. Due to credit card companies entering into the free credit score business, this service area is undergoing another big change. The question is whether or not this change will leave Credit Karma as a second-rate player rather than a leader. Unfortunately, the future looks questionable for the company.

This trend isn’t likely to change, and it will likely only increase with more and more credit cards offering free credit scores in the future. FICO has been negotiating with other large credit card issuers to bring FICO scores to their monthly statements. If these plans go through, millions of consumers will no longer need free credit score services like Credit Karma, Credit Sesame and Quizzle, because they will be getting their scores automatically each month. They will also be getting their FICO score and not a FAKO score.

The bigger question is whether or not banks will soon be following this new trend as well. Consumer advocates are now beginning to push for financial institutions to provide free credit scores to consumers in an effort to help them gain a better understanding of how credit reporting and their personal credit scores work. If this trend takes hold, then it’s possible banks and credit card services everywhere will offer free credit scores along with their regular services. This shift would place Credit Karma and services like it in a position where they may not be able to survive. All these services have a number of obstacles to overcome in order to stay relevant in this rapidly changing free credit score reporting service world.

One of the biggest issues facing Credit Karma is convenience. They have managed to grow into the number one business in the field of providing credit scores by providing the convenience of obtaining the score for no cost and without a credit card. With credit card companies now beginning to provide consumers with credit scores on their monthly statements, and the possibility of banks and other institutions following suit, Credit Karma is losing the convenience factor, which underpinned a lot of its success.

On the upper hand, it’s not all doom and gloom for the company. Their services still offer consumers the benefit of having access to their credit score once a week, whereas credit card companies and other institutions only offer them once a month. They also offer more than just credit scores. They offer tools to help people see how decisions they make end up affecting their credit score. While it appears that the credit card companies are also moving in this direction, they aren’t providing this service as conveniently as Credit Karma is at the moment.

The company has also seen a great deal of support from investors who have a firm belief that they will be able to successfully overcome the obstacle of remaining a relevant service. Tiger Global Management, Google Capital and Credit Karma’s existing investors all contributed to raising approximately $85,000,000 in new financing to help the company out while they work to readjust and overcome the new obstacles they are facing. Considering that Credit Karma already has a history of finding new and unique ways to serve their customers’ needs, investors are more than confident they will soon overcome the new challenges placed before them.

There are definitely some major changes taking place in the world of free credit score providers. In a world that is consistently becoming more dependent on technology and convenience, it’s no surprise that it’s becoming easier and easier to obtain your personal credit score. With such a wide variety of financial institutions now jumping onto the bandwagon to provide credit scores to their consumers, it will definitely be interesting to see how Credit Karma will be able to grow and thrive as a business with the increasing competition.

About Emie Fortney

Emie Fortney is a self-proclaimed ‘info-maniac’, a lifetime academic learner and a lover of the English language. With a pension for the technical, scientific and methodical aspects of life and technology she prides herself on providing readers with the most enlightening and accurate information available. She hopes to make a difference in the world today by continually providing accurate information in areas of her expertise to those seeking knowledge.
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10 Responses to Are Credit Cards Beating Credit Karma at Its Own Game?

  1. dan says:

    I used to use Credit Karma quite a bit, but then Discover started to give me my score with my statement. I don’t think I’ve been to their site since then. There really isn’t a reason for me to do so now that it’s delivered to me.

  2. Jamie says:

    Although credit card companies are offering the credit score consumers should not forget the importance of a credit report. for instance, offers consumer their actual free Equifax credit score along with their free credit score. Consumers should check their credit report because it shows consumers what shapes their credit score. Without the report the score is just a number.

  3. benjamin says:

    You can get your free credit report directly from all three agencies at for free each year. There is no need to go through a secondary company to get it.

  4. dean says:

    My opinion is that credit scores are highly overrated. Dave Ramsey says that your credit score should be zero. Everyone should follow his advice.

  5. turbolag says:

    Dean, don’t be a sheep… Educate yourself, it will change your life.

  6. bill says:

    Seriously Dean, take advice, but also think for yourself. This is one area where Dave has is head up is ass and doesn’t know what he’s talking about. Not to mention there is no such thing as a “zero credit score”

  7. dean says:

    I am educated. That’s why I know Dave Ramsey is right and credit scores are useless. Maybe you should educate yourself?

  8. dean says:

    No such thing as a zero credit score? What if you don’t have a credit score at all? That means it’s zero. You shouldn’t talk about things you don’t know about.

  9. Jamie says:

    Annual Credit Report is a great resource, but to get your credit score you have to pay. is a great place where you can get your full credit report AND score for free twice a year.

  10. bob johnson says:

    Credit Karma just started offering weekly full Transunion credit reports for free. Really worth a look if you have not been there lately.

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