Software · head to head
Credit Karma vs PayPal
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; PayPal currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios
- They diverge on capability: Credit Karma covers Free credit score, PayPal covers Payment processing.
Where they differ
Only the attributes on which Credit Karma and PayPal actually diverge.
| Attribute | Credit Karma | PayPal |
|---|---|---|
| Starting price | Free | $29/month |
| Pricing model | freemium | usage-based |
| Free tier | Yes | No |
| Platforms | Web, IOS, Android | Web, Ios, Android, Api |
| Founded | 2007 | 1998 |
Identical on both: 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
- IOS support
Only in PayPal
- Payment processing
- PayPal Checkout
- Invoicing
- Business debit card
- Working capital loans
- Shopify
- WooCommerce
- BigCommerce
Both cover
- Web 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 PayPal
- Comparing credit card and loan offers with Approval Oddsnot PayPal
- Filing federal tax returns at no chargenot PayPal
PayPal
- Paying online merchants without sharing card detailsnot Credit Karma
- Sending money to friends and family domestically and internationallynot Credit Karma
- Holding balances in multiple currencies for cross border purchasesnot 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
PayPal
- Currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios
- Instant transfer to a bank or debit card costs 1.75 percent of the amount, with a minimum of 0.25 USD and a maximum of 25.00 USD
- International personal transactions carry a 5.00 percent fee regardless of payment method, with a minimum of 0.99 USD and a maximum of 4.99 USD
- Sending domestic personal payments funded by a credit card costs 2.90 percent plus a fixed fee of 0.49 USD
- Instant transfers are capped at 25,000.00 USD per transaction
Pricing, plan by plan
Credit Karma
Free- FreeFree
- Credit score monitoring
- Credit reports
- Personalized recommendations
PayPal
$29/month- Standard$2.99/transaction
- Card payments
- PayPal checkout
- Invoice payments
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 PayPal if
- You need payment processing.
- You work on Web, Ios, Android, Api.
- You also want paypal checkout.
Questions people ask
- Is Credit Karma or PayPal better?
- Neither clearly leads. Credit Karma starts at Free and PayPal at $29/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Credit Karma or PayPal?
- Credit Karma has a free tier; the other does not. Paid plans start at Free for Credit Karma and $29/month for PayPal.
- Does Credit Karma or PayPal run on more platforms?
- Credit Karma runs on Web, IOS, Android. PayPal runs on Web, Ios, Android, Api.
- Can I use Credit Karma for free?
- Yes. Credit Karma has a free tier, so you can try it without paying. PayPal starts at $29/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 PayPal is typically brought in for.
- What can Credit Karma do that PayPal cannot?
- Credit Karma covers Free credit score, Credit report monitoring, Credit card recommendations, Tax filing. PayPal covers Payment processing, PayPal Checkout, Invoicing, Business debit card. Both handle Web support, Android support.
Related pages
More on Credit Karma
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