Software · head to head
Credit Karma vs Betterment
The short version
- Only Credit Karma has a free tier, so it costs nothing to try first.
- Each has a real cost: Credit Karma state tax filing costs 15 USD even though federal filing is 0 USD; Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance
- They diverge on capability: Credit Karma covers Free credit score, Betterment covers Automated investing.
Where they differ
Only the attributes on which Credit Karma and Betterment actually diverge.
| Attribute | Credit Karma | Betterment |
|---|---|---|
| Starting price | Free | $5/month |
| Pricing model | freemium | subscription |
| Free tier | Yes | No |
| Founded | 2007 | 2008 |
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 Credit Karma
- Free credit score
- Credit report monitoring
- Credit card recommendations
- Tax filing
- Credit bureaus
- Financial institutions
Only in Betterment
- Automated investing
- Retirement planning
- Financial advisory
- Goal tracking
- Bank accounts
- Investment accounts
Both cover
- Web support
- IOS support
- Android support
What people use each for
The jobs each tool is most often brought in to do.
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
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
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
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
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
Pricing, plan by plan
Credit Karma
Free- FreeFree
- Credit score monitoring
- Credit reports
- Personalized recommendations
Betterment
$5/monthNo published plan breakdown. See the Betterment review.
Which should you pick?
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.
Choose Betterment if
- You need automated investing.
- You work on Web, iOS, Android.
- You also want retirement planning.
Questions people ask
- Is Credit Karma or Betterment better?
- Neither clearly leads. Credit Karma starts at Free and Betterment at $5/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Credit Karma or Betterment?
- Credit Karma has a free tier; the other does not. Paid plans start at Free for Credit Karma and $5/month for Betterment.
- Does Credit Karma or Betterment run on more platforms?
- Credit Karma runs on Web, IOS, Android. Betterment 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 Credit Karma best used for?
- Credit Karma is most often used for monitoring a credit score and the factors affecting it for free, comparing credit card and loan offers with approval odds, filing federal tax returns at no charge. Of those, monitoring a credit score and the factors affecting it for free and comparing credit card and loan offers with approval odds are not what Betterment is typically brought in for.
- What can Credit Karma do that Betterment cannot?
- Credit Karma covers Free credit score, Credit report monitoring, Credit card recommendations, Tax filing. Betterment covers Automated investing, Retirement planning, Financial advisory, Goal tracking. Both handle Web support, IOS support, Android support.