SOURCE: Credit Karma

June 09, 2009 00:00 ET

Credit Karma Launches Innovative Personal Finance Tool -- Credit Report Card

Free Web-Based Tool Goes Far Beyond Unwieldy Credit Reports to Demystify Credit Scores and Prioritize Steps to Manage Credit Health

SAN FRANCISCO, CA--(Marketwire - June 9, 2009) - Credit Karma (, the consumer's advocate for demystifying credit, today released Credit Report Card, a free and innovative Web-based tool to help consumers to understand their credit score, identify key areas for improvement and take active steps to manage their credit health. To try it now go to

"Credit reports are unwieldy and oftentimes unintelligible to consumers, and credit scores are nothing more than a flat three digit number," said Ken Lin, CEO of Credit Karma. "The Credit Report Card is just like a school report card. It grades consumers on each component of their credit health and allows them to easily understand what impacts their credit score, and provides guidelines on how to optimize their credit."

Credit Report Card enables consumers to see the five major influencers on their credit score in detail, grades the consumer's credit health overall, and provides specific steps to improve each specific metric, including:

--  Credit card utilization
--  Length of credit
--  On time payment history
--  Total accounts
--  Credit inquiries

"The consequences of a poor credit score are much higher today than they were even a few years ago," said Jim Bruene, Founder of Online Financial Innovations. "Not only can consumers be denied credit outright, they may face higher prices for insurance, apartments, and auto loans. Even worse, employers are using credit scores to screen-out job applicants. Today's cost-conscious consumer must track their credit score and, when necessary, take steps to improve it."

In addition, consumers can also compare credit metrics on a curve: ranking their credit metrics in relation to other Credit Karma members, providing consumers with a benchmark for understanding how their credit score compares across each metric. Consumers can see how a change in any key metric can impact their credit score as well as prioritize which areas to focus on based on potential impact on their credit score.

"Without Credit Karma's new tool, the only real information consumers have at their disposal are seemingly arbitrary credit scores and lengthy unintelligible credit reports, which contain hundreds of variables and offer no real context or useful advice," said Lin. "Since credit reports were developed for lenders for the purpose of evaluating borrowers and setting fees, there have been few services developed to educate consumers -- many of whom could save a million dollars or more over their lifetimes through better credit management."

Credit Report Card is available now at

About Credit Karma

Credit Karma, the consumer's advocate for demystifying credit, is the only Web site that provides consumers free access to their credit score, plus a range of tools and information resources to help them monitor and manage the credit aspect of their financial health. Credit Karma's goal is to help consumers easily digest the contents of their credit report and understand what makes up their credit score. Credit Karma works with a range of partners, including mortgage lenders, credit card providers, banks, and wireless providers. For more information, visit

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