Free Credit Report. How do you feel when you hear those three words? Personally, I am not very comfortable when I see them. Most of the time websites offering free credit report has some things going on under what you can see on your computer screen. You might be able to get a free credit report one time but there will be monthly recurring charges that will come your way without your knowledge.

We have been hearing about Credit Karma for quite a while now. Honestly, I had some skepticism in me when I first learned about it. I checked it out though and it seems legit. Yes, you will see light at the other end.

I didn’t know what to expect when I visited their website. Well, I have been reading their blogs but that is it. Getting into it is a bit different than just reading it. Big question in my mind is that how can they provide credit reports for free when everyone else charges a fee.

After analyzing, the answer was after all right before me. A-D-V-E-R-T-I-S-I-N-G!

When you try to a get a free credit report, Credit Karma pairs you up with some financial offers which most likely you will grab and qualify. Once you are reviewing your credit score, you will see some loan, credit card, and bank offers right on the homepage. These companies give Credit Karma a portion of their earnings for sending us there, as their leads. This scheme is also true if you have ever tried using Mint.com .

From the consumer’s end, Mint has some edge I think since they show you deals that can save you some dollars depending on your money habits. Nevertheless, I will grab the free credit report any time.

Overview

After signing in, the system will bring you to the Overview page. This is where you will see all the financial and credit offers being pushed your way.

Credit Report Card

This is an excellent feature. It is really like a report card that evaluates how you do with the factors that affect your credit score. These 7 factors are:

1. Debt – Income Ratio
2. Total Debt
3. Hard Credit Inquiries
4. Total accounts
5. Average are open credit lines
6. % of On time payments
7. Open Credit Card Utilization

The calculator gives you a bird’s perspective of the area you need to focus on so you can bump up that credit score. You can also see how each factor influences your credit score.

Credit Score

As the name of the page suggests, you will see your credit score here and a graph that summarizes your credit history. The Credit Karma system pulls this from TransUnion which is among the top three major credit bureaus.

Credit Snap Shot

This will give you a picture how lenders see your score and how you compare among consumers in the United States.

Credit Simulator

I find most of the features of Credit Karma very useful but this one never worked when I tried it. It kept on prompting me for errors when I tried to make some changes in more than one field. Maybe it will be fixed next time we visit.

Verdict

Credit Karma follows the same line as Mint during its first few months. In general, the service is great except for some technical issues. I will definitely use Credit Karma to check my credit report for free. They don’t give you your FICO but you get an official report from TransUnion. Credot Karma is a great tool for a free credit report. There is no after taste like when we tried other online services like it.