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Is Credit Karma Safe
8 May 2019

Millions of Canadians Are Wondering: Is Credit Karma Safe?

Credit Karma is a well-known site offering free credit reports to users willing to sign up for an account with them. For many, this sounds too good to be true, and they worry if their might be a catch. Is Credit Karma safe? You’ll have to keep reading to find out.

What Exactly Does Credit Karma Do?

You can’t answer the question ‘is Credit Karma safe?’ without knowing exactly what the company is doing. Most people know that Credit Karma has something to do with credit scores, but they may not understand exactly what services the company offers or how they do what they do. It all starts with you signing up for an account. During this process, they won’t ask for your credit card information directly, but they will require a few bits of personal information from you such as your SIN number – this helps them to know whose credit report to pull and that they have the owner’s permission to do that. Once your account is set up, you can get access to your credit score and a wealth of information about how good it is and how you might improve it.

This score is your TransUnion score, which is important to know; there are many ways to measure a credit score, and the figure you see here may not be the one that banks and other lenders are using when they evaluate your applications. Still, it should be relatively close, so you can trust it to provide an accurate picture of your general credit health at the very least. You can update this as frequently as every week if you choose so you can watch how it develops over time.

Credit Karma does more than just provide you with information, though. Once you have your credit report, you’ll be shown a full array of financial products whose application requirements match up with your credit profile. This is how the company gets their revenue instead of charging you, but you have no obligation to apply for any of those products if you don’t want to. They’re just there for you to consider and to show you what your options might be.

The Importance of Credit Karma Canada Safe

It’s not just nosiness that makes people want to answer the question about Credit Karma Canada safe. It’s a very important question to have answered before you start to interact with this company. By definition, any dealings with them mean handing over some sensitive information and allowing them to use it to access other sensitive information.

If the wrong people were to get their hands on your credit card data, they could do untold amounts of damage to your personal financial profile, and it’s up to you to be responsible and proactive enough to make sure that you only give this information to companies you can trust. No one should be entering a single thing into Credit Karma’s website until they are convinced that the only answer to the question ‘is Credit Karma safe?’ is ‘yes, absolutely.’

Technological Precautions To Guard Your Data

The first thing you need to know about how Credit Karma handles the safety of your information is what kind of security procedures they have in place. They use 128-bit encryption to send and receive data from their users, making it all but impossible for someone to hack and reroute the data while it’s in transit. This isn’t a foolproof way of keeping your information safe, but it’s pretty good, and they don’t stop there. They also undergo regular auditing from third-party security companies and offer rewards to people for reporting bugs to them that they can then fix.

If you’re still wondering how to answer the question ‘is Credit Karma safe?’, you can take things one step further. You can also set up two-factor authentication for your account, which will require you to enter a security code you receive via text message along with your password every time you want to log in. This ensures that no one who doesn’t also have access to your phone will be able to get into your account even with your password, which makes a breach much less likely.

Credit Karma does understand that their many security procedures will not always be able to keep hackers away, and they don’t feel that you should have to worry about what might happen in the event of a failure. To that end, they also have automated procedures in place that scan your profile for any suspicious activity and alert you as soon as possible if they find any. Then you can review their short report yourself and figure out if it was caused by something you did or if there really is a problem that you need Credit Karma’s help in sorting out.

Can Credit Karma Themselves Be Trusted?

So now that we’re sure that your credit information will not be intercepted by a malicious third party on its way to Credit Karma or as it’s coming back to you, one security concern still remains. Credit Karma themselves still has access to your data in the process of getting you your credit report, and there’s no way to get around that fact if you want to make use of their services at all. What do they do with your information when they have it, and how long do you have to worry about whether or not they will misuse it.

We’re happy to say that Credit Karma is completely in the clear on this count. Though they do use your information in order to access your credit report, they do not store that information afterwards – it’s all wiped from their records for the time being until you choose to access it again. They also do not ever sell your information to other companies for use in their marketing campaigns, even to their partner lenders whose products they promote; the process of matching you to those promotions is all done automatically by an impartial machine intelligence that discards your data once your matches are found. There is no lasting trace that you ever dealt with them at all except for the fact that you have an account with them. That account contains a few details like your SIN number, but as we’ve mentioned above, it’s carefully safeguarded. While it’s impossible to prevent any and all bad things from happening, it’s one more reason to be optimistic about the answer to the question ‘is Credit Karma safe?’

What Are Their User Reviews Like?

Credit Karma is a very well-liked company overall. Their Trustpilot rating is extremely good, as is their rating on most similar sites. People love how easy their service is to use, and best of all, how it’s free for them to take advantage of. Of the people who leave written messages with their reviews, relatively few mention anything about the recommended products portion of Credit Karma’s operations, but that makes sense if you think about the fact that those things are not technically part of this company’s purview at all. If anyone is unhappy with those products, they’ve likely said so on each loan or card’s individual page, and that makes it hard to track satisfaction with that aspect of Credit Karma’s business.

Some Limitations of Their Services

Even with all of these good points working in their favour, there is one aspect of Credit Karma that still might leave you with some cause for concern. It has nothing to do with what they’re doing specifically, though; it’s more about how you react to what they do. You should take care not to take their product advertisements as gospel. Their recommended products are all determined by your credit score alone, so even if you are likely to qualify for them, they might not be the best fit for you in other ways and might not constitute an honest look at all your possible options.

The very best financial product for you might still be out there, but you won’t know it if you think of the selection that Credit Karma gives you as being most of what is available to you. If you’re really serious about looking to borrow, it makes sense to consult more than one source for product recommendations and to do a little reading on your own rather than relying on what they put in front of you. Doing so is a muc safer choice as it will expose you to a much wider variety of possible credit cards and loans and may end with you finding a better solution for your needs.

So What’s the Final Verdict? Is Credit Karma Safe?

Coming to a final decision on Credit Karma’s relative safety requires that you think about several different aspects of the word ‘safe’. Is it safe to use to find out what your credit score is and integrate that into your knowledge of your own financial health? Absolutely, there is no risk to you there. Is it safe to rely exclusively on the products it recommends to you when you’re trying to figure out what provider to borrow from? Maybe not, if you’re trying to achieve the optimal solution. However, even that small danger can be avoided with a little extra care. Overall, we feel confident in declaring that Credit Karma is indeed safe for consumers to use.