How to Withdraw Money From Credit Karma Savings Account
Intuit—the financial software giant that owns TurboTax and Mint—is buying personal finance company Credit Karma for more than $7 billion. Credit Karma, one of the first companies to give Americans free access to their credit scores and reports, earned more than $1 billion in revenue in 2019, according to Bloomberg, thanks to its ability to sell credit cards, personal loans, and other financial products to account holders.
Though Credit Karma execs may suddenly be enmeshed in the thrill of the ultimate payday, you might feel decidedly more queasy. Credit Karma's self-reported 100 million users, especially those who've come to love and trust the tech startup, might not be comfortable with the idea of another company—particularly one that's embroiled in several tax-filing controversies—having access to the sensitive data in their accounts.
It's true that Wirecutter recommends Intuit's TurboTax for certain filers (we also provide context for the ethical issues involved). For taxpayers who itemize or want helpful advice as they enter their data, it's that much better than the competition. We also recommend Credit Karma's free tax-filing software, which we still believe is a fine choice for basic returns. But we understand if the merging of these companies—and the uncertainty of what could happen to your Credit Karma data—is a bridge too far.
How to cancel your Credit Karma account
If you're concerned about your data, know that cancelling your account may not erase every trace of your relationship with the company. Credit Karma says it holds on to your information for the long haul, even if you deactivate your account. It will eventually anonymize your info, but that process takes up to (and sometimes longer than) two years. (If you live in California, you may be able to request the personal information a business collects about you. In some situations, you can ask the company to delete that data.)
But if you're feeling uneasy about the Intuit acquisition, deleting your Credit Karma account is still a better option than keeping it open. The process is relatively straightforward, though you may have to take a few stabs at it before you're ultimately successful.
- Log in to your account.
- Select the Help Center option in the bottom left corner on your account homepage. (Alternatively, you can go straight to this page—you'll be asked to log in if you haven't already.)
- In the Help Center, type "deactivate account" into the search bar at the top. This brings up a search result titled How do I cancel my membership?, which you should then click.
- On the next page, click Deactivate my Credit Karma account.
- On the next page, scroll down and click the red Cancel account button.
- You'll be asked if you're sure you want to make such an irreversible action—click Yes.
The first two times I attempted to deactivate my account after the Intuit news broke, I got an alert that said "Unable to deactivate try again later." However, when I tried to log in some 20 minutes later, the deed had been done.
Note: If you're in line to receive the so-called "alternative reimbursement compensation" from the Equifax hacking settlement (that is, up to $125), you might want to wait a few months before closing your account.
When you filed your claim "you certified that you had some form of credit monitoring or protection services on the date you submitted your claim form, named the provider of those services, and certified that you would keep those services for a minimum of 6 months," said the Equifax Breach Settlement Administrator in an email. We asked them if it was possible to cancel the credit monitoring service you had when you filed your claim, sign up for a new one, and still receive whatever money's coming to you, but they declined to answer.
Credit Karma alternatives
Credit Karma is hardly the only company that offers free access to credit scores and reports. You have plenty of alternatives to consider if you're jonesing for similar services but don't want to pay. Wirecutter has not independently reviewed these tools, so use them at your own discretion:
- CreditWise from Capital One
- Credit Sesame
- Credit.com
- Credit Journey from Chase
- Discover Scorecard
- WalletHub.com
All of these products essentially offer the same things:
- They're free (or have a free option).
- They pull your credit information from Experian, TransUnion, and/or Equifax, the three major US credit-reporting agencies.
- They provide you with a credit score (most likely your VantageScore rather than your FICO score). Most lenders use FICO scores when deciding whether to lend you money or offer you credit, but generally speaking, you should treat any free credit score as mostly educational.
- Ultimately, they use your data to sell you stuff.
Do you even need a service like Credit Karma?
So before you begin anew with a Credit Karma rival, think about what you'd do if another behemoth you despise bought the new service you signed up for. No wisdom is gained from the mule's second kick.
Credit-monitoring companies, even the free ones, exist to sell you something, whether that's a credit card, an auto loan, or even a mortgage. It's not a free lunch.
If that sounds like a dismal relationship, consider taking out the middleman. American Express, Bank of America, Chase, and Citibank typically offer cardholders free access to their credit score. (And sometimes, you don't even need to be a customer to sign up for these services.) The banks also provide basic information about the factors that affect your score, such as whether you're using too much of your available credit limit.
A DIY alternative for your credit reports
Every 12 months, you can get a free copy of your credit report from each credit-reporting agency (Experian, TransUnion, and Equifax) through the federally authorized website AnnualCreditReport.com. Be sure to comb through your reports for errors or omissions, a seemingly daunting task that's actually relatively painless in practice .
About your guide
Taylor Tepper
Senior Staff Writer
Taylor Tepper is a former senior staff writer at Wirecutter covering financial products and how people use them. He has been published in The New York Times, Fortune, and Bloomberg, among others. He earned his MA at the Craig Newmark School of Journalism at CUNY, and is currently preparing for the CFP exam at the University of Texas.
How to Withdraw Money From Credit Karma Savings Account
Source: https://www.nytimes.com/wirecutter/money/credit-karma-intuit-deal/
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