Why do they care if I check…?

Plan_for_FIRE

Hi All, after some opinions or evidence (if it exists) to the following: Why does Credit Karma want me to keep checking my score? What are they getting out of it?

I have left the notifications on as I would like to know of any significant changes, but why are they encouraging me to check all the time? Even to the point of being obscure as if something might have changed.

Now, I am well aware that if the product is free then you or your data is the product and supplying it is your ‘payment’… but I don’t see their angle here, how do they profit based on the frequency of me checking my report? e.g we have 500,000 active users so we can sell them your credit cards…?

Thanks 

magpies79

Well apart from the obvious where they say to keep an eye on credit file every now and then to make sure nothing has been applied for or recorded wrong.

 I can only think it’s a marketing thing in the hope you see a product while checking and apply for it.

sourcrates

They act as a broker, they want to sell you credit improvement products such as credit building cards or loans etc.

Its also a business so has to make money somehow, producing your credit score, and selling ways to improve that score is one way to do that.

DullGreyGuy

Plan_for_FIRE said:

Hi All, after some opinions or evidence (if it exists) to the following: Why does Credit Karma want me to keep checking my score? What are they getting out of it?

I have left the notifications on as I would like to know of any significant changes, but why are they encouraging me to check all the time? Even to the point of being obscure as if something might have changed.

Now, I am well aware that if the product is free then you or your data is the product and supplying it is your ‘payment’… but I don’t see their angle here, how do they profit based on the frequency of me checking my report? e.g we have 500,000 active users so we can sell them your credit cards…?

The actual business of Credit Karma is as a lead generator for both financial services and non-financial; generate £50m/year from all those options of looking at loans you may be accepted for etc. 

Sending you notifications is going to be a negligible cost for them but you looking may make you curious about the latest credit card offers or can you get a cheaper loan etc etc and thats how they make their money by you clicking through to apply and/or being accepted for one.