Credit Karma Review
Founded in 2007, Credit Karma identifies its mission as “championing financial progress for all.” Initially, the company focused on personal credit monitoring and financial management. It later expanded to cover tax preparation and access to unclaimed property databases. Nowadays, Credit Karma also offers a complete lineup of financial services including checking accounts, savings accounts, credit cards, personal and home loans.
Let’s look at Credit Karma’s banking options, so you can determine whether the company meets your financial needs.
Pros and Cons of Credit Karma
- No minimum initial deposit
- No monthly fees or overdraft fees
- Competitive high-yield savings rate
- 55,000 in-network ATMs nationwide
- Get paid up to two days early
- Instant Karma rewards program
- No branch locations
- No paper checks
What Does Credit Karma Offer?
Credit Karma Money offers spend and save accounts. Both accounts are 100% free to open. Plus, there’s no minimum balance requirement, no maintenance fee, no annual fee, no inactivity fee, and no withdrawal fee. And if you set up your paycheck to be direct deposited, then you can get access to your paycheck up to two days early. Since Credit Karma is a modern banking alternative, another key point is that everything can be managed directly from the mobile app.
Credit Karma also has a unique reimbursement feature branded as the Instant Karma program. The company randomly selects debit card purchases and reimburses them for the full value of the transaction. There’s no limit to the value of an eligible transaction. When Credit Karma unveiled the program, the odds of winning were about 1 in 500. The company plans to improve those odds over time.
Additionally, Credit Karma takes the safety and security of your money seriously. So, accounts are FDIC-insured up to $5,000,000. And if you need to lock your debit card, then you can instantly do so in the app. Plus, the app makes it easy to dispute transactions.
What to Expect on the Site
To open a Credit Karma account online, start by entering your email address and setting a password. From there, follow a standard set of steps:
- Provide government-issued photo ID
- Go through identity verification
- Enter personal details like your address and contact information
- Make your initial deposit (no minimum required)
Credit Karma helpfully guides you through the easy process, so opening an account is straightforward.
Credit Karma’s checking and savings accounts have virtually no costs to speak of. There are no monthly service fees, no inactivity fees, and minimum balance requirements. The company also doesn’t charge overdraft fees, mostly because it won’t allow customers to overdraw in the first place. An out-of-network ATM fee is the only expense users might have.
The Bottom Line
Credit Karma’s checking and savings accounts are about as affordable as they come. The near-total lack of fees may be especially appealing to cash-tight customers. The only real caveat is a lack of support for paper checks. But in today’s world, mobile banking is the future. Plus, the company’s Instant Karma rewards program is a fun perk.
As you consider top online banking providers, Credit Karma has many advantages that make it worth checking out.