Discussion » Questions » Business » If Credit Karma is free, how do they make any money?

If Credit Karma is free, how do they make any money?

Posted - September 20, 2017

Responses


  • 7683
    Ive no idea...who's that in your profile, Sharonna;))
      September 20, 2017 9:21 PM MDT
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  • 46117
    That's Groucho Marx of the Marx Bros.  A comedy brother team from the 40's.  They were very Jewish, very witty and for the time, very hilarious.

    Groucho had a show on in the 50's called You Bet Your Life.  It was a weekly quiz show. 

    He is an American Icon.  I think they were all kind of geniuses.  Like the Jackson family.  You know Michael Jackson?  Like that family.  But not as NUTS.  At least publicly they were not as nuts. 



    The Marx Brothers were an American family comedy act that was successful in vaudeville, on Broadway, and in motion pictures from 1905 to 1949. Five of the Marx Brothers' thirteen feature films were selected by the American Film Institute (AFI) as among the top 100 comedy films, with two of them (Duck Soup and A Night at the Opera) in the top twelve. They are widely considered by critics, scholars, and fans to be among the greatest and most influential comedians of the 20th century. The brothers were included in AFI's 100 Years...100 Stars list of the 25 greatest male stars of Classic Hollywood cinema, the only performers to be inducted collectively.

    The group are almost universally known today by their stage names: Chico, Harpo, Groucho, Gummo, and Zeppo. The core of the act was the three elder brothers: Chico, Harpo, and Groucho. Each developed a highly distinctive stage persona.

    Harpo and Chico "more or less retired" after 1949, while Groucho went on to begin a second career in television. The two younger brothers, Gummo and Zeppo, did not develop their stage characters to the same extent. The two eventually left the act to pursue business careers at which they were successful, as well as a large theatrical agency for a time, through which they represented their brothers and others. Gummo was not in any of the movies; Zeppo appeared in the first five films in relatively straight (non-comedic) roles. The performing lives of the brothers were brought about by their mother Minnie Marx, who also acted as their manager. This post was edited by WM BARR . =ABSOLUTE TRASH at September 20, 2017 9:44 PM MDT
      September 20, 2017 9:41 PM MDT
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  • 7683
    Oh, thank you Sharonna for the info!
      September 20, 2017 9:45 PM MDT
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  • 46117
    Sure. I hope you took notes.

    (hee hee)






      September 20, 2017 9:48 PM MDT
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  • 10026
    By having "Good" Karma, I would think.  I don't know.  I'm still stuck on the stupid and intelligent question!  Winks and smiles!!
      September 21, 2017 1:21 AM MDT
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  • 46117
    Speaking of stupid, this stupid commercial is on every hour it seems and it got me to wondering what the catch is.  If it is free.  What the heck?  They must try and upsell you once they snag you.
      September 21, 2017 2:04 AM MDT
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  • 10026
    Those commercials do leave little to be desired.  I used Credit Karma once.  Only once.  I did so because I hadn't checked my credit in about, ohhhhhhh, 30+ years.  It turned out to be a huge benefit for us.  Because of our findings, Don got a new car!
    However, if I had seen the ad beforehand, chanced are, I would have never used them.  I did so on a friend's suggestion.
    You'd think they would have enough money to buy a good advertising company.
     It really does suck and they could juggle their time-slots a bit and not hit the same people numerously in a 2 hour time-frame.

    This post was edited by Merlin at September 21, 2017 10:15 AM MDT
      September 21, 2017 9:54 AM MDT
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  • 46117
    Your review is all I need to know. 

    Thank you.  I am surprised they don't do a better job of telling you HOW they work.

    Thank you.
      September 21, 2017 10:16 AM MDT
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  • 10026
    You're welcome.  We both agree.  :0 Before you go, I know this is on another question, but, where did Element get that number of 11,0000,000 whatever it was on his notifications? I check mine every time I come on.  Is there a running tally or is that the number under your name?  Like yours says 19,555.  Is that what Element is talking about??
      September 21, 2017 10:19 AM MDT
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  • 34479
    Element is not clicking on his notifications so it never resets.  He is likely going directly to his notifications through his profile page. 
    The number next each user's name is the number of posts (both questions and answers) they have on the site. 
      September 21, 2017 12:08 PM MDT
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  • 34479
    Through adds on their site. And by recommending credit cards for you.  If you  follow their link to apply for the card and are approved, they will get a kick back. 
    But it truly is free. I have used them for years.
      September 21, 2017 5:03 AM MDT
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  • 46117
    Thanks.  I had no idea.  That makes total sense. 
      September 21, 2017 10:00 AM MDT
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  • 44659
    They made a deal with Equifax.
      September 21, 2017 7:21 AM MDT
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  • 10026
    Hi Element~ So does Equifax, in a sense get a kick back from them?  Did Equifax buy them?  If so, talk about a Monopoly.
      September 21, 2017 9:59 AM MDT
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  • 46117
    And how does that tell me anything?  How do they get paid?   I think My 2 explained it.
      September 21, 2017 10:01 AM MDT
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  • 7280



    So What’s the Business Model?

    Since Credit Karma is a for-profit business, not a charity, how does it make money? Rest assured, it’s not from selling the information you share in order to get your credit reports from its site. According to the description on the company website, its revenues come from tailored, targeted advertising by financial companies on creditkarma.com. Its business model is based on finding a win for everyone – the consumer, the financial institutions that advertise products and Credit Karma’s own bottom line.

    Credit Karma surpassed 60 million members in November 2016, and recently launched in Canada. It has the ability to do robust analysis and use algorithms to select relevant ads to specific people. To financial advertisers, this means that the site is able to better match them with consumers who are more likely to use their services. Based on agreements with its financial advertising partners, Credit Karma gets paid for this lead generation.

    Here’s How it Works
    When Credit Karma pulls your credit reports, it can see how much you are currently paying for loans or credit card debt and can suggest credit cards, auto loans and insurance, personal loans or other banking products that would save you money – and for which someone with your credit score and history is likely to be approved. “If you take advantage of that opportunity, we should make money, you should save money, and the bank should get a new customer,” is how Lin put it in a December 2014 Reddit Q&A. “The loser in the equation was that bank that was charging too much.”

    If you highlight what I have italicized and search for that, you will find the link to the source---which is investopedia.  (I cannot post a link without turning all of what I have posted into a link as well.)

    This post was edited by tom jackson at September 22, 2017 12:43 AM MDT
      September 21, 2017 4:31 PM MDT
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