Credit Karma: Review 2020

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Table of Contents
    Minimum credit score:

    Approval odds given before application is completed


    From 9.95% to 35.99% (personal loans)

    Loan amounts min to max:

    From $1,000 to $50,000

    Origination fee:

    From 1% to 8%


    From 24 to 60 months

    Late payment fee:

    $25 to $35

    Prepayment penalty:Varies between each lending partner


    • Decent maximum loan offer
    • Reasonable terms available
    • Approval odds estimated before the application is complete
    • A range of educational articles
    • Different types of consolidation loan available


    • Late payment fees are high and increase if repeatedly incurred
    • High origination fees in some cases
    • The minimum APR is much higher than some competing loan agents

    Why should you consolidate your loans with Credit Karma?

    • High maximum loan offer - With a maximum loan offer of $50,000, Credit Karma comes ahead of some of its competitors. This won’t be enough to support the needs of every applicant, but for many, it’ll make a huge contribution towards home improvement or medical bills, for example
    • Reasonable terms - The longer the terms, the lower the monthly repayments (generally). If you’re more concerned with the monthly cost rather than the overall expense, then a consolidation loan of five years could offer the financial respite you need
    • Approval estimates given before submitting an application - It’s a significant positive aspect of this provider. Once processed, some credit checks will alert other loan agents that you’ve made an application. What’s worse, it’ll likely damage your credit score. By providing an estimate of the likelihood of your eligibility, you could save yourself from processing a damaging application unnecessarily 
    • A variety of consolidation loan types - Whether via a personal loan, home equity loan, or balance transfer credit card, there are several options for borrowers

    What are the eligibility requirements?

    Eligibility requirements will differ significantly depending on each lender, but each company will take certain considerations into account, such as:

    • Employment history
    • Monthly income
    • Overall outstanding debt levels
    • Bankruptcy applications
    • Frequency of credit checks undertaken

    How to apply for a Credit Karma consolidation loan? 

    1. Create an account online
    2. Apply for pre-qualification
    3. If eligible, compare the loan offers provided
    4. Make a full application (includes detailed information on social security, income, and monthly housing cost)
    5. If accepted, review the details and formally commit to the loan. Cash will sometimes be deposited on the same business day.

    Customer Service

    All support services are online. It’s possible to seek assistance on all financial products, and there’s also an FAQ section that will provide answers for most common queries. 

    What types of debt can be consolidated with Credit Karma?

    Most types of debt can be consolidated. The balance transfer credit card and home equity loans have specific uses, but personal loans can be used for most purposes, whether for a holiday, medical bill, or auto repairs, to name a few popular examples.

    Bottom line

    Credit Karma has some reasonably good options available for consolidation loans, but the origination rates are potentially much higher than some of its competitors. Why not use Avant, instead? Its origination fees never go beyond 4.75%, and it charges no prepayment fee at all. SoFi is another worthy contender, with APRs as low as 5.99% and a consistently well-reviewed customer service team.