Here at Credit Karma we’re committed to making financial progress possible for everyone, which means solving the biggest, hairiest financial problems faced by everyday Americans. One of the biggest challenges we hear about from our members is the cost of their debt - over $3.5 trillion of debt for more than 60 million members, or about $54,000 per person! Even a half percent savings on interest would mean more than $17 billion in payment savings. These are big numbers.
We have just launched a new version of our mobile app to put a dent in this problem by helping people reduce the cost of their debt. The updated tool guides members through the process of reducing the cost of credit card and auto loan debt, with recommendations on everything from refinancing to payment strategies. Credit Karma’s size and deep understanding of our members’ financial situations make saving money fast and easy.
We’ve started with credit cards and car payments as these debts are carried by about 50% and 25% of our members respectively. When it comes to car payments alone, our analysis shows that some 15 million members could save nearly $25 billion dollars in interest over the life of their auto loans, or about $1,700 per person. In just a few minutes, we can tell you if you could save money with a new auto loan.
Further, for the first time, a mobile app will notify people of potential financial opportunities that might otherwise go unnoticed. The Credit Karma mobile app, with its latest enhancements, is available now as a free download in the Google Play™ and Apple® App Store℠. With the new mobile app, Credit Karma members have access to:
- Personalized Opportunities for Savings: Credit Karma can notify members when it finds new opportunities to save, such as refinancing with a new auto loan or by transferring credit card debt to a personal loan or zero-interest balance transfer credit card. Better yet, we can first check if a consumer is pre-approved for a personal loan, giving them the confidence to apply without unnecessarily hurting their credit score.
- Financial Health at a Glance: A consumer’s credit scores, credit reports and financial account information are easily accessible, with added levels of personalization to highlight items that may require their attention.
- Timely Education: Relevant articles, credit tips and other tools presented based on individual profiles to clarify complex credit and financial concepts.
This is just the most recent example of Credit Karma working to help real people every day. You see, we love to see our members thrive.
Senior Director of Product