business

How Much Does Credit Karma Spend Giving You Free Credit Scores and Reports?

August 28, 2020 By Kathryn Vercillo 13 Comments

Credit Karma truly changed the game a few years ago when they began to offer free credit reports. They also give you your credit score for free. Prior to this, you had very few options for accessing this important information. Now, thanks to their innovation, you can easily access your credit report and scores for free in several locations. But if they do this for free, then how is it that Credit Karma makes their money?

Credit Karma Changed the Game

Not too many years ago it was relatively challenging to access your own credit information. The credit companies seemed to obfuscate this information. It all felt like a big mystery to many consumers.

Of course, you could get your free annual credit report from each of the three major reporting agencies. However, you could only do that once per year. While accessing your free credit score felt a little bit easier, it was still a challenge.

It’s all different today. When you log in to your credit card accounts online, you often immediately see your FICO credit score. You can also easily access it, as well as your free credit report, from a number of sources. Credit Karma played a key factor in changing the world in this way. It’s been to the benefit of consumers who are now increasingly empowered to take control of their own finances thanks to the access they now have to this information.

Is It Really Free?

One of the big questions that people immediately ask is whether or not it’s truly free to get your credit report and credit score through the company. It is.

The reason people are wary is because historically “free” hasn’t actually meant entirely free. Other companies before Credit Karma offered “free credit reports.” However, you had to sign up for credit monitoring services with them. Technically, you could join a free trial, get your credit score and then cancel before you paid anything. However, canceling was often challenging, if you remembered to do it at all. Therefore, you ended up paying for the credit score after all. (Well, you paid for credit monitoring, but since you didn’t want it in the first place, you paid for what you did want, which was the “free” credit score.)

Credit Karma simply does not operate this way. You don’t have to give them any money. You don’t even have to give them a credit card that they could potentially charge money to. You enter your information and they give you your credit report and credit score for free.

If It’s All Free, How Does Credit Karma Make Money?

This company is a terrific example of the difference between a finance company and a finance company. Finance companies make their money primarily in dealing with money. Fintech companies, on the other hand, emphasize the “tech.” They offer innovative Internet-based solutions to problems. They provide tools that help with your finances. This is how they make their money (through a variety of channels.)

Credit Karma Got Capital Investment

First of all, when it was a young company, it operated like a tech company. In other words, it got venture capital. For example, in 2014, Google Capital gave the company $85 million in order to roll out new products. One of the key new products at that time was the ability to offer free credit reports. (They had already been offering free credit scores for six years.)

According to the VentureBeat article announcing that deal, Credit Karma pays out tens of millions of dollars annually to access those credit reports/scores. And yet, they (and their investors) believed that it would be financially worth it to make that investment.

Speaking of their investors, Google Capital wasn’t the only company to fund Credit Karma. Investopedia reports that they received nearly $900 million from eight rounds of funding over the years, although the most recent round was in 2018.

Credit Karma Makes Money Off of Advertising Products

Like many websites, this one has ads on the site. Moreover, they offer a variety of products and services to their customers. You don’t simply go on the website, get your credit score, and leave. Instead, you have the opportunity to access a wide variety of different services and tools that can improve your credit. If you use them correctly, it’s a win-win. You improve your credit score and the company gets a small fee any time that you utilize the services advertised on their site.

Like with so many other websites, if you click through to something that interests you on the site, you have the opportunity to purchase it. If you do, Credit Karma makes a little bit of money. The company has more than 100 million registered users, over 35 million of which are active monthly users. Those little bits add up for the company. So, for example, if you see a credit card offer on Credit Karma that you like, and you click over to it and decide to apply, then Credit Karma benefits. But you didn’t pay anything.

Intuit Purchased Credit Karma

Credit Karma has continued to do well over the years indicating that users appreciate what they have to offer. One of the things that they started to offer more recently was tax preparation services. So, it’s no wonder that Intuit – known in particular for owning TurboTax – took notice. In 2020, they announced that they will be purchasing Credit Karma for more than $7 billion. It’s their largest acquisition ever, meaning that they certainly think that there’s financial profitability here.

Interesting, Intuit also owns Mint. Mint and Credit Karma offer many of the same services. Both are personal finance companies that offer free credit scores through an app-based / web-based service. That said, Mint tends to focus heavily on assisting you with understanding and improving your credit. Credit Karma does something similar but emphasizes the free credit report and other services such as tax prep. It will be interesting to see over time how the time are similar and different now that they’re both under the Intuit umbrella. That said, currently Intuit plans to continue to have Credit Karma operate as a standalone service.

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Should You Quit Your Job and Start a Business?

July 17, 2020 By Kathryn Vercillo Leave a Comment

You want to quit your job to start a business. Nobody can blame you. There are many wonderful things about being your own boss. However, it’s a risky endeavor. It’s not all sunshine and roses. Moreover, you can lose a lot of income at the beginning of starting a business. Should you really quit your job? Or should you perhaps scale back on your regular work as you first start your business? There are a lot of things to take into consideration when you make this decision. Let’s explore the pros and cons a little bit.

Why Do You Want to Quit Your Job and Start a Business?

This is the most important question to answer before you actually quit your job and start a business. And, in fact, you should answer it as two separate questions:

Why do you want to quit your job?
Why do you want to start your own business?

Many people consider it to be one question. However, if you are honest about the answers to both parts of the question then you’ll be a lot clearer whether or not this is the right step for you.

For example, let’s say that you answer part one: “I hate my boss.” As you dig into part two, you may realize that you don’t actually want to start your own business at all. In contrast, you simply don’t want to work for that same boss anymore. Realizing this early on will go a long way towards making sure that you’re taking the next right step in your career.

Alternatively, let’s say that you don’t have a clear answer to part one. You know that you want to start your own business because there’s a particular cause that you’re passionate about. Could you keep your day job and just volunteer in a capacity that fills that need?

If you are very clear about why you both want to quit your job and why you want to start a business then you’re well on your way to making smart choices as you move forward.

Benefits When You Quit Your Job to Start a Business

When you quit your job and start a business, you do reap some benefits:

You immediately begin to work for yourself. This gives you a huge feeling of freedom. However, don’t discount how much responsibility it requires.
You have plenty of time to devote to your new business. After all, if you regularly work 40+ hours per week and then you quit, that’s 40+ hours per week to devote to your new passion project.
You avoid any conflict of interest. If you want to start a job that’s similar to what you do now then there might be a conflict of interest that would prevent you from staying at your current job. Review any non-compete agreements and related terms of your contract.

If you are the type of person who works best under pressure then you might find that it’s worth it quit your job to start a business. You could thrive under the stress of trying to make a go of it when you don’t have another income to fall back on. The time you free up by quitting your job, and the freedom you get from working your own schedule, could be worth it. But don’t fail to take into consideration that there are drawbacks when you quit your job to start a business.

Drawbacks When You Quit Your Job to Start a Business

Research indicates that entrepreneurs do better if they stay at their job when first starting a business. There are some big risks and drawbacks to the decision to quit your job and start a business. Those drawbacks include:

You’re obviously no longer drawing an income. Therefore, there’s a lot of pressure on your new business to succeed dramatically and right away. You aren’t giving it enough time to scale up.
It could be harder to get loans for your business. If you can’t show that you’ve got an income coming in then getting credit for your new business could be more difficult.
If the business doesn’t do well, you might not be able to get your old job back. After all, the economy isn’t thriving right now. If you’re lucky enough to have full-time employment then you might not want to sacrifice that to start your own business.

Starting a Business: What to Do First

If you decide that you do want to quit your job to start a business, then you have to take that decision very seriously. You have to put your all into this new endeavor if you want to make it work. Here are some of the things that you need to do before you even quit your job:

Create a business plan. It’s imperative that you know exactly what you plan to do and how you plan to do it. You need goals, milestones, and timelines. Of course, those may shift with time but try to get a solid plan in place.
Crunch the numbers. Figure out what it’s going to cost you to start a business. Consider the initial costs, your own paycheck for the first year, and all other first-year expenses. Figure out how to make that work before you quit your job to start a business.
Start working. Don’t delay getting your first clients or customers. You might want to get the first few clients lined up before you quit your regular job.
Network. Just because you’re working for yourself doesn’t mean that you don’t need other people. Build your team. This might mean hiring people, working with consultants, or simply networking with other entrepreneurs. Make sure that you have a group of people in your corner.

Weigh the pros and cons before you quit a job to start a business. Does it make sense for you, considering the economy, where you are in your career, and what you truly want from starting your own business? The more thought that you put into the process ahead of time, the better chances you are to get the results that you desire.

Business Credit Card Deductions You Won’t Want to Miss

January 30, 2019 By Amanda Blankenship Leave a Comment

There are more than 364 million open credit card accounts in the United States. Most people use one daily. This is typically true of businesses as well. In fact, most business owners have a credit card they use for any and all purchases. However, not everyone is aware of the many business credit card deductions they may be missing out on.

5 Business Credit Card Deductions

As many of us are receiving our W2s and other tax paperwork in the mail, you may be searching for additional deductions you can make before you file. If you are a business owner or have a business credit card, be sure you make a note of these.

Credit card interest charges. Ideally, you wouldn’t have any interest on purchases for your business. Every once in a while you may have to buy a large piece of equipment or something more expensive that you aren’t able to pay off in one swipe. If you are charged any interest throughout the year, you can deduct it from your taxes.
Any swipe fees. At any point during the year, if you paid a service fee to swipe your business credit card, deduct the fee.
Late fees. The same can be said of late fees. You can write off any late fees you paid last year.
Annual fees. Some business credit cards have an annual fee. If your card does, you can deduct the fee from your taxes.
Miscellaneous credit card fees. All in all, you’ll be able to deduct any fees or charges you paid last year using your business credit card. Be sure you note any fees you incur, so you have this information on file.

Things to Keep in Mind When You File

Keep in mind, that these deductions are only available for business credit card transactions. You cannot write off fees and interest charges for any personal items. If you use your business card for anything personal, you’ll need to go through your statement and calculate the amount of interest paid on business dealings. However, it is best to use the card solely for business purchases to make tax season a little easier.

Lastly, if you have any questions about business credit card deductions or other deductions available to you, it never hurts to consult a tax professional. At this time of year, many firms are running specials and can help answer any questions you may have.

What is one of your favorite business or personal tax deductions?

SumUp Review: This App Can Help Your Business Get Paid

December 1, 2018 By Amanda Blankenship Leave a Comment

Have you heard of SumUp? If you are a small business owner, you’ll want to know about this company. This app could be the answer to easier card payments.

SumUp Review: What Is It?

SumUp is an up-and-coming FinTech outfit. Last year, it was voted Europe’s fastest growing company. With its launch in 2012, SumUp has expanded into 33 countries and, most recently, moved into the United Stated FinTech market. Operating out of Boulder, CO, SumUp hopes to bring their technology and low transaction rates to small and medium-sized businesses throughout the states.

The company plans to become the first global mobile-point-of-sale (MPOS) company. As the business continues to grow, SumUp will continue to focus on providing lower transaction rates than similar services as well as responsive customer service.

An Easier Way to Pay Your Business

You’ve probably seen mobile payment devices recently. In the past, when the Girl Scouts were outside the grocery store, you could get away without buying anything if you simply didn’t have cash. However, with mobile payments, you can now run a credit or debit card anywhere.

You can carry the SumUp device everywhere and use it anywhere. With your smartphone, you can accept credit and debit card payments wherever you are. Hundreds of thousands of small businesses around the world are already using SumUp to get paid. The company has also developed a suite of software to integrate SumUp into other apps and services your company offers.

Traditionally, services like this have not been open to small businesses. SumUp wants to provide the same high-tech payment option for the little guy. Businesses using SumUp vary from coffee houses to mechanics to boutiques.

How to Use the SumUp App

The SumUp app is easy to use and easy to get started. The company even provides paperless onboarding, and customer service is available every step of the way, no matter what questions you may have.

The company prides itself on providing the best value and service possible for small businesses using their tool. To do this, they maintain open and transparent communication. What’s their bottom line? To build a better way to get paid.

How Much Does It Cost?

Because SumUp is targeting small-to-medium business owners, you might wonder if you can afford this tool. Well, the answer is yes! SumUp has made their MPOS device and other services extremely affordable.

You can order the device itself for just $69. You’ll get free delivery within 3 to 4 business days. It also comes with a 30-day money back guarantee as well as a one-year warranty.

On top of those perks, the SumUp device includes free reporting, free phone and email support, and all payments hit your bank account within one to two business days.

Best of all, the company only receives 2.65% of each transaction paid for with the SumUp device. So, your business won’t be spending a fortune on gathering payments. Even better? There are no monthly fees or additional costs.

Is SumUp Right for Your Business?

All in all, SumUp is a fantastic new company looking to provide easy payment options for small to medium-sized businesses. Many of these businesses find themselves paying high transaction fees or unable to accept certain types of payment (American Express or other credit cards) because of the high transaction fee.

If you’re looking for a more affordable way to process credit card transactions, consider trying SumUp out for a month. They have low fees that they are focusing on maintaining. With the device, you can also accept any type of credit or debit card payment, no matter what type of card it is. And, their 30-day money-back guarantee means you have nothing to lose.

7 Side Business Ideas for Students

November 21, 2017 By Susan Paige Leave a Comment

It can get challenging to earn a consistent income while you’re still a student. Increasing tuition fee and education costs make students go for a side business.

So where to begin?

Here are a few great side business ideas that you can start immediately even if you’ve no money.

Tutoring

The best side business you can do as a student to earn a few bucks every week is tutoring. This is easy because you can teach what you study at school.

There must be one area you’re great at, start teaching it.

Here are a few different ways you can get started.

You can easily find students in your school who will be looking for a tutor. You can teach your juniors in the school.
Talk to your professors and tell them you’re interested in becoming a tutor. Most schools let students register as a tutor.
Put a flyer in your library.
Post an ad on Craigslist. This is your best bet.
Register with online tutor platforms such as Tutor, Tutorhub, and others.

There aren’t any hard and fast rules. You can set your own time and fees.

After you’re done with your degree, you can continue your career as a tutor.

Child caretaker

Not everyone can handle kids. If you’re someone who loves kids and kids love you, there couldn’t be any better side business for you than a child caretaker or a babysitter.

Normally, girls are great babysitters because they have this natural ability to handle kids with care. Nevertheless, anyone can be a babysitter.

It is a business that demands serious responsibility, therefore, it is recommended to get the basic babysitting or childcare training.

The best part, babysitters are in high demand. You won’t find it hard to find customers.

You can find a few customers at your school. Ask your professors and seniors. There is always someone around you who needs a babysitter badly.

Besides, you can register at online babysitter sites like Care, Sitter City, and Urban Sitter.

Assist seniors

How about becoming a personal assistant? Well, you can assist your seniors in the school with pretty much everything ranging from homework to assignments to home cleaning to cooking and more.

Your seniors always need someone to help them. You can earn decent money by assisting them with different chores. Though you won’t earn as much as you do as a tutor or a babysitter being an assistant is easy.

You’ll be doing things that you do every day and you get paid for it.

You can put flyers in your school. It isn’t hard to find seniors who need assistance. This is one of the easiest side business ideas for any student.

Freelance writing

This is a perfect side business idea for students who love writing. If you can write persuasive copy, there are businesses out there that are looking for you.

Most students know how to write but becoming a freelance writer isn’t just about writing, you’ve to go an extra step. You’ve to write content that people love to read.

Freelancing sites like Upwork will help you find clients online. Besides, you can send your writing samples and updated resume to businesses online.

Yardwork

Landscaping and yard work is a kind of side business that’s not for everyone. If you love gardening and have enough knowledge about them, you can start yard work business.

You can plant flowers, design beds, pull weeds, and manage yards and gardens on weekly basis. This is the kind of business that needs an initial investment. You’ve to have tools and equipment before you can jump in.

Finding clients won’t be an issue. You can start from your school. Talk to your professors and seniors. You might get a few clients there.

You can post an ad on Craigslist to get more clients.

Care is one of the best online platforms that can help you take your landscaping business to a whole new level.

Sell essays

How about selling your essays online?

There are students and researchers who need content on regular basis. Websites like Grade Saver and Academon provide you with an opportunity to sell your essays, guides, and revisions notes. You can get paid up to $25 for a literary essay.

This is one of the easiest side businesses that any student can go for. I’m sure you’ll have a lot of essays on your laptops hard disk. It is time to use them and earn a few bucks.

Social media manager

This sounds like a dream come true, right?

Sure it is. Let’s monetize your social activity by becoming a social media manager for a local business. Businesses are always looking for someone who can manage their social media accounts, create posts, respond to comments and messages, and engage with their followers.

Large businesses won’t hire you so you should look for local businesses like restaurants and travel agencies. Finding a social media manager work might be hard because you’ll not find it in your school. You’ve to go out, talk to small businesses, and tell them what you can offer.

This is one serious business that will help you earn a lot.

You can also find social media manager jobs online on sites like Upwork and FlexJobs.

When choosing a side business, don’t ignore your interest and passion. Don’t look for a temporary way to earn money for a few months rather try to create a full-fledged business that you can stick to once you’re done with your studies.

Author Bio: Sabih Javed is an entrepreneur, content marketer, and a music-lover. He is the founder of DigitalMarketer.pk where he writes about all things digital marketing.

Which Country Has the Highest Taxes?

October 11, 2017 By Jackie Cohen Leave a Comment

Don’t believe any refrains about the U.S. supposedly having the highest taxes of any country — no matter whether President Donald Trump is saying it nor anyone else, it’s not really true. [Read more…] about Which Country Has the Highest Taxes?