Your credit report is a very important thing as it affects most of your finances and having a healthy credit score is very good for your financial wellbeing.

In this brief guide, we will cover whether using Credit Karma UK to check your credit score is a good choice, how to cancel your Credit Karma UK account and what alternatives you may have to Credit Karma UK.

Credit Karma UK is the UK arm of Credit Karma, the USA company. Credit Karma UK came about when Credit Karma acquired Noddle which was the consumer arm of Callcredit, a UK credit reference agency which was then acquired by Transunion.

A guide on Credit Karma UK

Credit Karma UK is a UK company which displays to consumers their credit report. This credit report is provided by Transunion.

The fact that Credit Karma UK offers the credit report provided by Transunion means that consumers can check to see if there are any errors of things missing from their credit reports and why their credit scores aren’t rising.

Credit Karma UK isn’t the only company offering consumers the chance to see their credit reports as Clearscore, Equifax and Experian all offer consumers the opportunity to view their credit scores. Credit Karma UK is, however, the only company that offers the credit report provided by Transunion solely.

It is important to note that Credit Karma UK only provides a credit report provided through Transunion and that Credit Karma UK isn’t a credit reference agency itself.

How much is Credit Karma UK?

Credit Karma UK offers a free service and you can use it as much as you want without paying.

Credit Karma UK will not sell your data or pass it on for any marketing purpose.

What is the purpose of a credit score?

Credit scores and histories essentially collect and store information on your credit behaviour. This means how many times you apply for credit, how much credit you have, how much credit you have paid back, how much credit you owe, what your credit repayment history is, do you miss credit repayments or do you make all your credit repayments on time, what type of credit you have, how many credit accounts you have and other relevant information relevant to your identity and credit including:

How many addresses you have had?
Your date of birth
Your rent repayment history
Your current address
If you are registered on the electoral roll
If you have had any court judgements which affect your credit rating such as

A debt management plan
A default
A bankruptcy
A home reposession

The totality of this information makes up your credit score and history and all of this information will be available through Credit Karma UK.

When you go on Credit Karma UK and register you will be able to see your credit score.

Your credit score is a number which summarizes your credit behaviour with one ranking.

You will notice that on Credit Karma UK you have one credit score which is provided by Transunion. If you want to check your other credit scores then you may want to use a service like Check my file which displays all the credit scores from all the credit reference agencies unlike Credit karma UK.

If you’re wondering if your credit score is high or not you can simply use it based on the scale you are looking at when you check your Transunion score provided by credit Karma UK.

Your credit report is a summary and history of all your credit behaviour.

In your Credit Karma UK dashboard, you will be able to see your credit reports from Transunion. This credit report will contain all the main elements of your credit report in more detail. If you find anything on your credit report which you think is an error then you should contact Credit Karma UK and dispute this or contact the credit reference agency who supplied the report to dispute this directly with them.

What do you need to have a good credit score?

You may have checked your Credit Karma UK dashboard and noticed that you have a low credit score. This will usually be because the factors that make up your complete credit report will indicate that you have done things which don’t constitute good credit behaviour or in some cases you haven’t done the basic things which ensure you have a solid credit foundation such as registering on the electoral roll or opening a credit account.

To have a good credit score you will usually need to:

Keep up on your monthly credit repayments
Apply for credit when you are eligible
Register on the electoral roll
Have few addresses on your credit accounts
Avoid having any court judgement against you such as:

A debt management plan
A default
A bankruptcy
A home reposession

These court judgements will be recorded on your credit report and will usually last there for 6 years before they will vanish or stop affecting your credit score. You can see if you have any of these court judgements on your credit score by looking at your Credit Karma UK credit report and comparing the report from all three credit reference agencies by getting a statutory credit report from each of them.

You can view a more extensive guide on how to build credit and after taking some of the tips provided you can check your Credit Karma UK account in a few months to see if any changes have happened to your score.

Initially when you take out new credit or take any action that may reflect on your credit file your credit score may initially go down and you may be able to see this on your Credit Karma UK account.

Whenever you try to build credit you should accept that it may take a while for you to see any results because the different credit reference agencies will usually not apply any updates to your account or it may not affect your credit score instantly.

Why do you need a good credit score?

A good credit score is important as it ensures you are eligible for credit products such as mortgages, credit cards, loans etc

A good credit score will not only make you eligible for credit products but, more importantly, it will ensure you are eligible for the good rates mortgage lenders offer on products.

Your credit karma dashboard will provide useful tips on how you can improve your credit score.

Aside from being eligible for credit products a credit score may affect you if you want to rent an apartment or if you are applying for a job( especially one in a regulated industry). You may miss out on a job or apartment due to bad credit behaviour. This is why it is vital you have a good credit score and check your credit score and report regularly through Credit Karma UK.

How often does Credit Karma UK update?

The data on Credit Karma UK is usually updated monthly or as when received from the credit reference agency which usually updates their credit database on a monthly basis.

You may notice your Credit Karma UK account will update on one credit reference agency but there may be no update on the other credit reference agencies.

This is simply because the different credit reference agencies update their databases at different times and this is not in the control of Credit Karma UK.

How to cancel your Credit Karma UK account?

If you want to cancel your Credit Karma UK account you can simply log into your Credit Karma Uk account and look under the settings tab for where you can delete your Credit Karma Uk account.

Alternatively, you can contact Credit Karma UK with the details on their contact page and inform them that you wish to cancel your account.

Is it worth using Credit Karma UK?

This depends on if you think using Credit Karma UK and access to the credit report from one credit reference agency may be beneficial to you.

Most people may simply stick to information from one credit reference agency and get their free statutory reports from the other credit reference agencies once in a while (maybe every year) to ensure that the date that the other credit reference agencies hold is accurate and if it isn’t then they could simply dispute the error with the credit reference agency.

When looking at things from this point then it may be relevant to simply use Credit Karma UK.

There are other services which offer a credit report and history such as clearscore which you may consider as a better alternative to Credit Karma UK.

You may still find value by using Credit Karma UK because you want to ensure you have a complete overview of your credit score and history from a company which also allows you to access credit products.

A free trial of Credit Karma UK

If you are unsure about Credit Karma UK but still somewhat curious then you may want to simply do a free trial with Credit Karma UK to see if it is something that you may want to use.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.