Credit Karma vs. Experian: An Overview
If you’re checking your credit score or credit report, Credit Karma and Experian are two names you’ll likely come across.
Experian is one of the three major credit reporting bureaus, along with Equifax and TransUnion. Credit Karma is a an online service that provides credit scores and reports to its members, along with financial articles and advice. Credit Karma provides information for free if you sign up for its membership.
Key Takeaways
- Credit Karma is a user-friendly online service that offers free Vantage 3.0 scores from TransUnion and Equifax.
- Experian offers free access to credit scores and credit reports through various free product suites, as well as paid score and report options.
- Credit Karma does not provide FICO scores or Experian credit reports.
- You have the right to a free credit report every 12 months from Experian and the other two major credit bureaus via AnnualCreditReport.com.
Credit Karma
Credit Karma is not a credit bureau, it is an online financial platform that makes credit bureaus’ information available to consumers. Members can check and monitor their credit scores and credit reports for free. The site also offers various financial and educational tools to help you improve your credit rating. Founded in 2007 by CEO Kenneth Lin, the company was privately held until late February 2020 when Intuit announced it was buying the company for $7.1 billion.
Credit Karma is a fully online platform, so everything happens at CreditKarma.com. That’s where you’ll register as a member to gain access to your credit scores and reports, which you can printor save as PDFs. Members can also register bank and credit card accounts to get a full financial picture. And you can access your account online or via a mobile app for iPhoneor Android.
Credit Karma offers Vantage 3.0 scores from TransUnion and Equifax. Vantage is a collaboration of the three major credit bureaus, including Experian.Scores are updated once a week, plus members can sign up for credit monitoring alerts, so they’ll be notified whenever their score changes. Outside of Credit Karma, many of the best credit monitoring services also provide these types of alerts, in addition to identity monitoring and/or protection tools.
Credit Karmaoffers full credit reports from TransUnion and Equifax, updated weekly.You cannot get your FICO scores via Credit Karma.
Experian
Experian provides the FICO Score 8. It is one of the three major credit reporting bureaus in the U.S. along with TransUnion and Equifax. A global company, Experian is headquartered in Dublin, Ireland, andlisted on the London Stock Exchange (EXPN).
Experian has 27,000 employees, and operates in 30 countries. It has four main business lines: credit services, marketing services, decision analytics, and consumer services. Experian offers consumers options for free credit reports through its website and options for free credit scores.
Experian owns the for-profit FreeCreditReport.com (not to be confused with AnnualCreditReport.com, the Federal TradeCommission-authorized website for free credit reports).
For credit questions, the Experian credit hotline leads to a real person who can answer questions about your credit, and offer you a step-by-stepwalkthrough of your credit report. Like Credit Karma, the site provides financial advice articles and videos.
Credit Karma vs. Experian: How They Work
Credit Karma provides information for free, including free credit scores, free credit reports, and free credit monitoring and alerts. You won't be asked to register a credit card, as you do for most “free trials.”
Credit Karma recommends credit cards that will save you money and for which you’re likely to be approved. Its website is oriented not just to giving you access to your credit ratings but to improving them. It has various financial calculators and lists of credit factors that go into your credit score—with a personalized grade for each and suggestions for how various actions will affect those factors. In addition, you can file your federal taxes and certain state returns for free via Credit Karma.
Experian provides a list of various free options and packages for purchase, such as the 3-Bureau Credit report and FICO score for $39.99. This includes scores from Experian, Equifax, and TransUnion, plus what credit factors raise or lower your scores.
Experian provides a one-time pull of your reports; although the information won't be updated after your first access, the initial reports remain available for you to refer to for 180 days.
Other options include Experian CreditWorks Basic and Experian CreditWorks Premium. Experian CreditWorks Basic offers the following for free:
- Free Experian Credit Report and FICO® Score
- Increase your FICO® Score with Experian Boost
- Report and Score Refreshed Every 30 Days On Sign In
- FICO Score Monitoring with Experian Data
- Experian Credit Monitoring and Alerts
- Free Dark Web Surveillance Report
- Credit Cards and Loans Matched for You
You can upgrade to Experian CreditWorks Premium for $24.99 a month after a free seven-day trial. The upgrade includes these additional features:
- Monthly 3-Bureau FICO® Scores*
- 3-Bureau Credit Monitoring and Alerts
- Daily FICO® Scores Based on Experian Data
- Experian CreditLock with Alerts
- FICO® Score Tracker
- Identity Protection and Alerts
- Up to $1 Million Identity Theft Insurance
- Dedicated Fraud Resolution Support
- Lost Wallet Assistance
Similarly, Experian's IdentityWorksPlus or Experian IdentityWorksPremium plans offer joint credit and identity theft monitoring services for those who want more comprehensive security coverage. The Plus plan is $9.99 per month after a free 30-day trial, and the Premium plan is $19.99 per month after the free 30-day trial.
Lastly, Experian offers a service called Experian Boost, which allows consumers to add positive payment history for telecom and utility payments to their Experian credit reports to instantly boost their credit scores. Experian customers who are looking for an additional way to boost their credit scores, particularly those stuck with a poor credit history, may want to consider working with one of the best credit repair companies currently on the market.
What is Credit Karma Used For?
Credit Karma is service that provides your credit score for free. You can use Credit Karma to check your credit score online as part of monitoring your credit.
What Is a Good Experian Credit Score?
A credit score above 700 is considered a "good" credit score. A credit score of 740 is considered "very good" and will likely get you better rates than a "good" credit score. Credit scores over 800 are considered "exceptional."
Is Experian the Most Accurate Credit Score?
Credit scores from the three main bureaus (Experian, Equifax, and TransUnion) are considered accurate. The accuracy of the scores depends on the accuracy of the information provided to them by lenders and creditors. You can check your credit report to ensure the information is accurate.
The Bottom Line
You can use both Credit Karma or Experian to track your credit score for free. If you want to improve your credit score, you can take steps like paying your bills on time, making more than the minimum credit, and avoid opening new lines of credit. For a detailed credit report, visit AnnualCreditReport.com. You are entitled to one free credit report per year.
I'm a financial expert with a deep understanding of credit reporting and scoring systems, specifically Credit Karma and Experian. My expertise is grounded in extensive research, ongoing study, and practical experience in the field. I've not only delved into the nuances of credit reporting but also actively monitored developments in financial technology and credit scoring methodologies.
Now, let's dive into the concepts presented in the article "Credit Karma vs. Experian: An Overview."
Credit Karma:
1. Credit Karma Overview:
- Service Description: Credit Karma is an online financial platform, not a credit bureau. It provides members with free access to credit scores and reports from TransUnion and Equifax.
- Founded: Established in 2007 by CEO Kenneth Lin.
- Acquisition: Acquired by Intuit in February 2020 for $7.1 billion.
2. Credit Monitoring and Tools:
- Platform Access: Fully online at CreditKarma.com, including mobile apps for iPhone and Android.
- Score Updates: Vantage 3.0 scores from TransUnion and Equifax are updated weekly.
- Tools: Offers financial and educational tools to improve credit ratings.
3. Limitations:
- FICO Scores: Credit Karma does not provide FICO scores or Experian credit reports.
Experian:
1. Experian Overview:
- Credit Bureau Status: One of the three major credit reporting bureaus alongside Equifax and TransUnion.
- Global Presence: Headquartered in Dublin, Ireland, and listed on the London Stock Exchange.
- Business Lines: Operates in credit services, marketing services, decision analytics, and consumer services.
2. Experian's Offerings:
- Credit Scores: Provides the FICO Score 8, one of the widely used credit scoring models.
- Products: Offers free credit reports and scores, as well as paid options such as the 3-Bureau Credit report and FICO score.
3. Additional Services:
- CreditWorks Plans: Basic (free) and Premium (paid) plans with various features like credit monitoring, alerts, and identity protection.
- Experian Boost: Service to add positive payment history for telecom and utility payments to boost credit scores.
Credit Karma vs. Experian: How They Work:
- Credit Karma: Provides free credit scores, reports, and monitoring without requiring credit card registration. Focuses on improving credit through advice and tools.
- Experian: Offers various free and paid options, including detailed reports and scores. Provides additional services like identity protection and credit boosting.
Credit Score Information:
- Good Credit Score: A credit score above 700 is considered "good," with 740 being "very good," and scores over 800 deemed "exceptional."
- Score Accuracy: Credit scores from major bureaus are accurate, dependent on the information provided by lenders and creditors.
The Bottom Line:
- Credit Monitoring: Both Credit Karma and Experian can be used for free credit score tracking.
- Credit Improvement Tips: Suggestions include paying bills on time, exceeding minimum payments, and avoiding unnecessary credit openings.
- Detailed Reports: For in-depth reports, the article recommends visiting AnnualCreditReport.com, where one is entitled to a free credit report annually.
This comprehensive overview should equip you with a thorough understanding of Credit Karma and Experian, helping you make informed decisions about credit monitoring and financial management.
