Credit Karma said it will add Equifax to its credit monitoring service as part of its free product, which proactively notifies members of significant changes to their credit report.
It includes a whole suite of notifications for significant changes in credit queries, such as opening new accounts, a change in the status of an account, new personal information or a hard inquiry or application for credit. You'll probably find most of this in some other credit monitoring services, but Credit Karma is now looking to offer it for free as it looks to create a more simple tool for consumers to check and monitor their credit scores.
This is important following the massive Equifax breach earlier this month, which included sensitive information for 143 million consumers. That breach included sensitive data like Social Security numbers, dates of birth, addresses and potentially driver license numbers. It's a potential goldmine for potential identity theft or fraud, which has placed companies and consumers on heightened alert.
The fiasco hasn't really ended there; since then, Equifax's shares are in a perpetual process of cratering, falling more than 35 percent in the past month. Researchers found deficiencies in its Argentina site just yesterday.
Credit Karma allows users to pull credit score information from TransUnion and Equifax for free, as well as see a breakdown of things that are impacting their credit score. The service is free, getting revenue from offers from advertising partners, and tries to make the whole process more approachable. Those scores are critical when applying for loans or credit cards. Credit Karma has had a partnership with Equifax since 2014.
Credit Karma has raised around $368 million in venture financing from firms like Founders Fund, SV Angel and Tiger Global Management. It last raised financing in 2015 when it picked up $175 million at a $3.5 billion valuation from Tiger Global Management, Valinor Management and Viking Global Investors LP. The company, founded in 2007, says it has more than 75 million members.