Credit Sesame vs Credit Karma: Which is Better? (2024)

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As a personal finance enthusiast, I try to stay on top of the latest trends and topics related to debt, credit, and other important money management topics. For this post, I signed up to compare Credit Sesame vs Credit Karma to see which was more beneficial and whether one was a waste of my time.

This post was written in partnership with Your Money Geek.

What Is Credit Karma?

Credit Karmais the largestfreecredit monitoring service in America. Created in San Francisco, California, in 2007, Credit Karma provides consumers with access to their credit score.

With Credit Karma, Users Can Access for Free:

The user’s credit score
The information in the user’s credit report from both TransUnion and Equifax
The factors that can improve or hurt a credit score
Actionable steps to improve the user’s credit score
Free tax filing and preparation
High yield savings account
Identity theft monitoring
Find unclaimed money
Vehicle value estimates and recall information

How Credit Karma Makes Money

Credit Karma is acompletely freeservice for users. The company makes its money by pushing lenders and other card services at the user to help with their credit. For each successful signup with a lender orcredit cardcompany, Credit Karma receives a commission.

What Is Credit Sesame?

Credit Sesameis another company founded in California to help people improve their credit scores and save money. Similar to Credit Karma, Credit Sesame also provides users with their credit score, free of charge.

Credit Sesame provides many of the same services as Credit Karma but emphasizing identity theft protection. Credit Sesame offers more active monitoring to fight against identity theft than Credit Karma does.

With the Credit Sesame App, Users Can Access for Free:

The user’s credit score
The information in the user’s credit report only from TransUnion
The factors that can improve or hurt a credit score
Actionable steps to improve the user’s credit score
Identity theft protection and insurance (for free! – up to $50,000 in coverage)

How Credit Sesame Makes Money

Credit Sesame also makes affiliate commission from recommending services and companies to the app userslike Credit Karma. However, Credit Sesame has a tiered monthly payment plan to add additional tools and resources at a price.

Credit Sesame Plans

Credit Sesame provides users with four plans depending on which features they would like to monitor and access.

Free Membership ($0 each month):

1 Bureau Monthly Credit Score Update
1 Bureau Credit Monitoring with Alerts

Advanced Credit ($9.95 each month):

1 Bureau Monthly Credit Score Update
1 Bureau Credit Monitoring with Alerts
1 Bureau Daily Credit Score Updates
3 Bureau Monthly Credit Score Updates
3 Bureau Monthly Full Credit Report

Pro Credit ($15.95 each month):

1 Bureau Monthly Credit Score Update
1 Bureau Credit Monitoring with Alerts
1 Bureau Daily Credit Score Updates
3 Bureau Monthly Credit Score Updates
3 Bureau Monthly Full Credit Report
3 Bureau Credit Monitoring with Alerts
24/7 Live Experts to Help Solve Credit Report Inaccuracies

Platinum Protection ($19.95 each month):

1 Bureau Monthly Credit Score Update
1 Bureau Credit Monitoring with Alerts
1 Bureau Daily Credit Score Updates
3 Bureau Monthly Credit Score Updates
3 Bureau Monthly Full Credit Report
3 Bureau Credit Monitoring with Alerts
24/7 Live Experts to Help Solve Credit Report Inaccuracies
24/7 Live Experts Provide Stolen/Lost Wallet Protection
Black Market Website Monitoring
Public Records Monitoring
Social Security Number Monitoring

The Benefits of Credit Karma and Credit Sesame

After trying both platforms, the Credit Karma App and the Credit Sesame App help keep an eye on your credit report and your credit score. Credit Karma is the winner when youcompare the featuresavailable in the free plan. However, the $50,000 identity theft protection that comes with the free Credit Sesame plan isprecious.

Improving Your Credit

Both credit monitoring companies will suffice if you are only interested in the necessary information or your credit score. However, Credit Karma checks two credit bureaus rather than only one like Credit Sesame’s free plan.

Identifying outstanding debt and making on-time payments is essential toimproving your credit score. Some outstanding debts that appear with one credit bureau may not show up on another bureau’s report. So as far as receiving the most up-to-date reliable information, Credit Karma wins this round.

Identity Theft Protection

Hands down, Credit Sesame, wins out in the identity theft protection area. Their free plan provides you with insurance in the unfortunate event your identity is compromised. If you’re willing to spend a few extra bucks each month, Credit Sesame offers even more protection to include 24/7 live expert help to resolve identity theft issues.

Credit Sesame vs Credit Karma – The Winner? It Depends On Your Purpose

While both apps provide you with basic credit information, Credit Karma is the clear winner if your main priority is monitoring your credit score and data reported to the credit bureaus. The information provided by Credit Karma is sufficient to help locate old debts to improve your credit score andsave moneywith lower interest rates.

However, if you are primarily concerned with monitoring your credit for possible identity theft issues, Credit Sesame is the clear winner. It’s apparent Credit Sesame geared their business model approach with an emphasis on identity theft protection.

Credit Sesame vs Credit Karma: Which is Better? (1)

The Best Strategy: Credit Sesame vs Credit Karma

For me, I like the best of both worlds. Because Credit Sesame and Credit Karma offer free plans with different strengths, I will continue to use both apps for their intended purposes. I love the focus on identity theft and the $50,000 protection I get from Credit Sesame.

In contrast, I like the detailed reports and information I get from Credit Karma regarding the information contained in the information reported to TransUnion and Equifax.

Using both of these powerhouses together, I can get the optimum protection from each – for free. For now, I am going to forgo the paid Credit Sesame plans and will stick with the basic protection for my current needs.

FAQs

Credit Sesame vs Credit Karma: Which is Better? ›

Credit Sesame offers better identity protection options. Credit Karma offers a more detailed credit score simulator. Credit Karma provides access to more financial services (like tax prep and the unclaimed money finder). Credit Sesame makes it easier to get an overall view of your situation on its dashboard.

Read On ›

Does Credit Sesame give an accurate credit score? ›

Credit Sesame is largely accurate. It provides credit scores from TransUnion, which are generally accurate and up-to-date, though they may differ slightly from scores from the other two credit bureaus.

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Which of the 3 credit scores is most accurate? ›

Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.

Why is my FICO score so much higher than Credit Karma? ›

This is because Credit Karma makes use of another credit scoring model compared to many lenders and possibly does not have access to all the data required to calculate your credit score.

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How far off is Credit Karma? ›

But, just how accurate are Credit Karma scores? They may differ by 20 to 25 points, and in some cases even more. When Credit Karma users see their credit score details, they are viewing a VantageScore, not the FICO score that the majority of lenders use.

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What is better, credit karma or credit sesame? ›

Both companies provide similar services, but you might find one is more suited to your needs or preferences. For example, Credit Karma shows both TransUnion and Equifax data while Credit Sesame only shows TransUnion data. However, you might like the identity protection options with Credit Sesame more than Credit Karma.

Tell Me More ›

What is the best site to check your credit score? ›

You can start by going to the three major credit bureaus, Equifax, Experian, and TransUnion first by logging on to AnnualCreditReport.com to check your report for free. Each agency gives you access to your report once every 12 months.

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Why is my credit score 100 points higher on Credit Karma? ›

This is mainly because of two reasons: For one, lenders may pull your credit from different credit bureaus, whether it is Experian, Equifax or TransUnion. Your score can then differ based on what bureau your credit report is pulled from since they don't all receive the same information about your credit accounts.

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What credit score is needed to buy a house? ›

For a conventional mortgage in California, you typically need a minimum score of at least 600. If you qualify for certain government-backed loans, however, you may be able to buy a home with a score as low as 500.

What is a good FICO score? ›

670-739

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What credit score is needed to buy a car? ›

Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.

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Can you buy a house with a 600 credit score? ›

Yes, you can buy a house with a 600 credit score — but it would be less challenging if your score were higher. A 600 score will not be high enough to qualify for a conventional home loan, so look into FHA loans, which have lower requirements: 500 with a 10 percent down payment, and 580 with a 3.5 percent down payment.

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Is 650 a good credit score? ›

As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.

Get More Info Here ›

Why is my credit score different on Experian and Credit Sesame? ›

There are many different credit scoring models, and each model might calculate a different score for each of your three credit reports. As a result, it's common for people to have multiple credit scores. At Experian, one of our priorities is consumer credit and finance education.

Which credit score report is accurate? ›

CIBIL Credit Score

TransUnion CIBIL is among the oldest and most reputable Credit Information Companies in India. Nearly all leading organisations are members of the bureau. CIBIL collects, analyses and maintains the information of different borrowers and lenders.

Does Credit Sesame build credit? ›

Sesame Cash debit card. Credit Builder takes your Sesame Cash debit card to the next level. You get all the great features included with a Sesame Cash account, PLUS the ability to build credit with the debit purchases you make.

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Can I buy a house with a 587 credit score? ›

Key takeaways. You can get a mortgage with a credit score as low as 620, 580 or even 500, depending on the type of loan. Some mortgage lenders offer bad credit loans with more flexible qualifying requirements but higher costs. Others offer free credit counseling to help you improve your score before applying for a loan ...