Credit Karma recently announced they will be endorsed by Google Inc. soon. Reports say the agreed ratification will be an $85 million investment. Credit Karma is an online service that provides users with free copies of their credit scores. The majority of the money will come from Google Capital, while the remaining funds will be provided by Tiger Global and Credit Karma’s previous investors— Ribbit Capital and Susquehanna Growth Equity. With the current inclusion, Credit Karma has now raised$118.5 million since the start-up company started its service in 2008.
The online service plan to use the incoming money to double its workforce of 110 employees and offer more products. Credit Karma has already made it easier to obtain a free snapshot of personal credit scores that determine loan rates and borrowing limits. The scores generally have been only given when people apply for a loan or sign up for other financial services that will ultimately incur fees. Consumers can have free access to their credit score once a week by setting up an account at Credit Karma. The service retrieves its primary credit score through TransUnion, one of the three dominant U.S. credit-rating agencies in conjoint with Equifax and Experian.
Credit Karma has agreed to let Google Inc. endorse them in hopes of expanding their services and adding more employees to the company. Since the services’ inception in 2008, approximately 21 million people have set-up a free account with Credit Karma. The online service does not store the Social Security Numbers provided by consumers upon signing up; however, each consumer’s profile is tailored according to the financial history and future monetary goals. Credit Karma also uses each person’s financial information for marketing pitches to advertise loans and other financial services. The service also analyzes consumer’s personal data to regulate which ads to show users. However, the CEO of Credit Karma Ken Lin assures consumers that their information is never shared or sold to third party.
Not only will Google ratify its monetary capital to the financial resource service, but also share its expertise of marketing and expanding online services to acclimatize larger audiences.
Though the free credit score service has attracted a large group of followers and has gained a reputable stature, not everyone feels the same way. According to reports from Saving Advice, many people question if Credit Karma is a scam. The reason is because the majority of credit report companies offer only a fixed trial period for consumers to view their free credit score. If the consumer does not cancel the membership before the trial period ends, the person is charged a monthly or yearly rate for the service. Thus, most consumers question if there is a catch to Credit Karma or if it is legitimate. In addition, sources say there has been a number of complaints against Credit Karma, including advertising and service issues.
Sources say Credit Karma requests too much personal information when creating a profile. As previously mentioned, consumers’ Social Security Number and home address is required during the sign up process. But some users do not feel comfortable giving their personal information to the credit monitoring company. Despite criticism from most consumers, Credit Karma has agreed for Google Inc. to endorse them in hopes of providing more online services and doubling its workforce.
By Bridget Cunningham