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Betterment vs Credit Karma

Betterment logo

Betterment

Software

Your path to financial independence

From
$5/month
Rated
-
Full reviewWebsite
Credit Karma logo

Credit Karma

Software

Free credit scores, reports, and more

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only Credit Karma has a free tier, so it costs nothing to try first.
  • Each has a real cost: Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance; Credit Karma state tax filing costs 15 USD even though federal filing is 0 USD
  • They diverge on capability: Betterment covers Automated investing, Credit Karma covers Free credit score.

Where they differ

Only the attributes on which Betterment and Credit Karma actually diverge.

Attributes where Betterment and Credit Karma differ
AttributeBettermentCredit Karma
Starting price$5/monthFree
Pricing modelsubscriptionfreemium
Free tierNoYes
Founded20082007

Identical on both: platforms (Web, iOS, Android), user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Betterment

  • Automated investing
  • Retirement planning
  • Financial advisory
  • Goal tracking
  • Bank accounts
  • Investment accounts

Only in Credit Karma

  • Free credit score
  • Credit report monitoring
  • Credit card recommendations
  • Tax filing
  • Credit bureaus
  • Financial institutions

Both cover

  • Web support
  • IOS support
  • Android support

What people use each for

The jobs each tool is most often brought in to do.

Betterment

  • Small investors starting with automated investing at no minimum balancenot Credit Karma
  • Fee-only digital wealth management for accounts under $24,000 via $5/month flat feenot Credit Karma
  • Premium advisory access for high-net-worth individuals with $100,000+ balancenot Credit Karma

Credit Karma

  • Monitoring a credit score and the factors affecting it for freenot Betterment
  • Comparing credit card and loan offers with Approval Oddsnot Betterment
  • Filing federal tax returns at no chargenot Betterment

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Betterment

  • Digital automated investing charges $5 per month fee for accounts under $24,000 balance
  • Premium advisory service requires minimum balance of $100,000 in eligible investments
  • Foreign transaction fees apply to checking account (though reimbursed after the fact)
  • High-balance fee discounts only available above $1,000,000 account balance

Credit Karma

  • State tax filing costs 15 USD even though federal filing is 0 USD
  • Credit Spark builds score history against TransUnion, and the site states that not all lenders use TransUnion credit reports or scores
  • Card and loan listings are advertising placements, disclosed on the site as compensation from third party advertisers
  • Send and score update frequency limits are not published on the site

Pricing, plan by plan

Betterment

$5/month

No published plan breakdown. See the Betterment review.

Credit Karma

Free
  • FreeFree
    • Credit score monitoring
    • Credit reports
    • Personalized recommendations

Which should you pick?

Choose Betterment if

  • You need automated investing.
  • You work on Web, iOS, Android.
  • You also want retirement planning.
Betterment review

Choose Credit Karma if

  • You need free credit score.
  • You want to start without paying.
  • You work on Web, IOS, Android.
  • You also want credit report monitoring.
Credit Karma review

Questions people ask

Is Betterment or Credit Karma better?
Neither clearly leads. Betterment starts at $5/month and Credit Karma at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Betterment or Credit Karma?
Credit Karma has a free tier; the other does not. Paid plans start at $5/month for Betterment and Free for Credit Karma.
Does Betterment or Credit Karma run on more platforms?
Betterment runs on Web, iOS, Android. Credit Karma runs on Web, IOS, Android.
Can I use Credit Karma for free?
Yes. Credit Karma has a free tier, so you can try it without paying. Betterment starts at $5/month.
What is Betterment best used for?
Betterment is most often used for small investors starting with automated investing at no minimum balance, fee-only digital wealth management for accounts under $24,000 via $5/month flat fee, premium advisory access for high-net-worth individuals with $100,000+ balance. Of those, small investors starting with automated investing at no minimum balance and fee-only digital wealth management for accounts under $24,000 via $5/month flat fee are not what Credit Karma is typically brought in for.
What can Betterment do that Credit Karma cannot?
Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. Credit Karma covers Free credit score, Credit report monitoring, Credit card recommendations, Tax filing. Both handle Web support, IOS support, Android support.
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