How credit karma make money

Credit Karma - Make Money

How Credit Karma Makes Money?

WHAT IS Credit Karma ?and how it make money 
Image result for credit karma pic
Credit Karma is an American multinational personal finance company, founded on March 8, 2007,[3] by Kenneth Lin, Ryan Graciano and Nichole Mustard.[4] It is best known as a free credit and financial management platform, but its features also include free tax preparation, monitoring of unclaimed property databases[5] and a tool to identify and dispute credit report errors.[6]
All of Credit Karma’s services are free to consumers.[7] Revenue from targeted advertisements for financial products offsets the costs of its free products and services. Credit Karma earns revenue from lenders, who pay the company when Credit Karma successfully recommends customers to the lenders.[8]
On February 24, 2020, Intuit announced that it planned to acquire Credit Karma for $7.1 billion.[9]


How Credit Karma makes money  Credit Karma make money with targeted advertisements for members,Credit Karma offers consumers access to credit scores and other credit information from TransUnion and Equifax, as well as tools for consumers to improve their rating. Users can access Credit Karma's information for free and as frequently as they desire, without registering with a credit card. By contrast, the three major credit bureaus provide complete credit score information for free to consumers only once a year, charging a fee for added requests. Credit Karma makes money by recommending financial products such as credit cards based on your credit information, and gets a commission if you buy a recommended product. 1 Credit Karma recently has expanded by offering free tax preparation assistance as well as a high-yield savings account through a partnership with MVB Bank.



KEY TAKEAWAYS
1.Credit Karma offers free access to TransUnion and Equifax credit data, as well as offering tax preparation assistance, and other services.
2.It makes money by receiving a fee every time a user purchases a product or service it recommends.
3.Credit Karma is a fintech startup focusing on providing credit information.
4.On February 24, 2020, Inuit announced it was purchasing Credit Karma for $7.1 billion.
Credit Karma's Industry
Credit Karma is a fintech services company. Unlike some companies in the industry, Credit Karma and its immediate competitors do not sell your data to third parties. In addition to providing credit scores, Credit Karma also guides consumers regarding what next steps to take after they have accessed their initial credit information.4

For example, the company recommends credit cards that are tailored to each consumer based on the odds of approval.5 It also provides users with guidance about tailored personal, home, and auto loans based on income and credit scores.6


Credit Karma's competitors include NerdWallet, Credit Sesame, and Mint, which also offer free credit score information and financial tools.


Fundraising and Financials
Credit Karma includes more than 100 million members in the U.S., Canada, and the U.K. as of February, 2020.7 According to Crunchbase, Credit Karma has raised $868 million over 8 funding rounds, the most recent of which was on March of 2018.8 The company at that time was valued at $4 billion.9 Its lead investors include Silver Lake Partners and SV Angel.10

History and Leadership
San Francisco-based Credit Karma was founded in 2007, offering its first free credit scores in 2008.4 The company was founded by Ken Lin, current CEO, who spent the early part of his career at E-Loan, an online lender specializing in debt consolidation, and UPromise, a subsidiary of student loan service Sallie Mae which runs a customer loyalty program focused on saving for college and paying down student loans.


Recent Developments
The company now is expanding Credit Karma Tax, the free tax preparation service it launched three years ago. For the current tax season, Credit Karma Tax is beginning to automate tax filing for its members. Credit Karma members also can link their tax filing to a Credit Karma Savings account to speed up tax refunds.12

On February 24, 2020 Inuit, maker of Turbotax and QuickBooks, announced that it was purchasing Credit Karma for $7.1 billion in cash and stock.

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