Credit Karma
| Company type | Subsidiary |
|---|---|
| Industry | Personal finance, Fintech |
| Founded | 2007 |
| Founder | Kenneth Lin, Ryan Graciano, Nichole Mustard |
| Headquarters | Oakland, California , United States |
Area served | United States, Canada, United Kingdom |
Key people | Kenneth Lin (co-founder) |
| Products | Credit scores, credit reports, credit monitoring, credit management tools, identity theft protection, tax preparation (formerly) |
Number of employees | 1,500 (2017) |
| Parent | Intuit |
| Website | creditkarma |
Credit Karma is a multinational personal finance enterprise based in Oakland, California, established in 2007. Since December 2020, it has functioned as a subsidiary of Intuit. The firm provides a complimentary platform for credit and financial management, offering services such as credit scores, credit reports, credit monitoring, and tools designed to identify and contest inaccuracies on credit reports. Additionally, it grants users access to databases containing unclaimed property. Credit Karma operates across the United States, Canada, and the United Kingdom.
All consumer services are offered free of charge, with the company generating income mainly through targeted advertisements for financial products. Revenue is earned when lenders successfully acquire customers referred by Credit Karma, which forms the foundation of its business strategy. By 2017, the company reported estimated revenues of $500 million and had a workforce of about 1,500 employees. Its innovative approach and strategic management have established Credit Karma as a significant entity within the fintech and personal finance sectors.
History
Kenneth Lin, who had previously founded Multilytics Marketing and held roles at E-Loan and Upromise, co-founded Credit Karma in 2007 alongside Ryan Graciano and Nichole Mustard. The service officially launched in February 2008. Early financial backers included Chris Larson, CEO of Prosper, and Mark Lefanowicz, former president of E-Loan.
In November 2009, the company completed a $2.5 million Series A funding round led by QED Investors with additional investments from SV Angel, Felicis Ventures, and Founders Fund. By 2013, Credit Karma had raised $30 million in Series B financing spearheaded by Ribbit Capital and Susquehanna Growth Equity.
March 2014 saw Credit Karma secure $85 million in Series C funding led by CapitalG, with participation from Tiger Global Management and prior investors. This was followed by an additional $75 million investment in September 2014 from CapitalG, Tiger Global Management, and Susquehanna Growth Equity. By 2015, total capital raised reached $368.5 million with a valuation of $3.5 billion.
To broaden its offerings, Credit Karma acquired several companies: Snowball, a developer of mobile notification applications in 2015; Claimdog, a service for reclaiming funds in 2016; and later that year AFJC Corporation (operator of OnePriceTaxes.com), marking its entry into tax preparation services. The company also established offices in Los Angeles and Charlotte to support these expansions.
In May 2017, Credit Karma introduced Unclaimed Money across seven U.S. states to assist users in locating unclaimed insurance payouts and refunds. In 2018, it further expanded by acquiring the personal finance chatbot Penny and the mortgage platform Approved.
By May 2019, Credit Karma entered the UK market through acquiring Noddle’s customer base from TransUnion. In December 2020, Intuit purchased Credit Karma for roughly $7.1 billion. To comply with DOJ antitrust requirements during this acquisition, Credit Karma divested its free tax preparation service.
That same month marked the relocation of Credit Karma’s headquarters from San Francisco to Oakland. In August 2021, the company enhanced its brand presence by securing a jersey sponsorship agreement with the NBA’s Houston Rockets.
In September 2022, the FTC imposed a $3 million penalty on Credit Karma for misleading consumers with inaccurate preapproved credit card offers that adversely affected users' credit scores. The company resolved the matter while reaffirming that it only earns revenue when users are approved for financial products.
In November 2023, Intuit announced plans to discontinue its Mint app and migrate its user base to Credit Karma by January 2024, consolidating its personal finance services under the Credit Karma brand.
Products and services
Credit Karma delivers complimentary credit scores and reports across the US, Canada, and the UK, sourcing data from national credit bureaus TransUnion and Equifax. Additionally, it offers daily credit monitoring services through TransUnion. Distinct from Equifax and Experian, Credit Karma functions as a credit broker.
The firm also provides tools for credit management and identity theft protection, featuring a Credit Score Simulator that predicts how various financial choices might influence credit scores. It further offers tailored suggestions for credit cards and personal loan options.
In December 2016, Credit Karma introduced Credit Karma Tax, a no-cost tax filing solution available in the United States. Unlike other providers limited by the Free File Alliance’s eligibility restrictions, Credit Karma Tax imposes no such limitations. Its primary competitors include TurboTax (an Intuit brand), TaxAct, and H&R Block. In November 2020, Square, Inc. acquired Credit Karma Tax for $50 million with plans to integrate it into its Cash App ecosystem.
See also
External links
- Articles with short description
- Intuit
- Companies based in Oakland, California
- Online financial services companies of the United States
- American companies established in 2007
- Financial services companies established in 2007
- Internet properties established in 2007
- 2020 mergers and acquisitions
- Financial services companies based in California
- Credit scoring
- Finance websites
- 500 Startups companies
- Tax software of the United States
- Tax preparation companies of the United States
- 2007 establishments in California
- 5
- Companies of the United States by year of establishment