Credit Karma: Time Is Running Out To Claim Part of Settlement. Are You Owed Money?

The deadline to file a claim for part of Credit Karma's $3M settlement is March 4. Here's what to know.

The green logo of Credit Karma on a white background on a laptop computer.
(Image credit: Gabby Jones/Bloomberg via Getty Images)

Are you one of the nearly half a million people offered a pre-approved credit card from Credit Karma but were then denied after applying?

If so, you may be due money as part of the company's $3 million settlement with the government — but you need to act fast as the deadline to file a claim is March 4.

As Kiplinger previously reported, nearly half a million people who were offered a pre-approved credit card from Credit Karma only to be denied after applying could be entitled to a portion of the company’s settlement with the government, according to the Federal Trade Commission (FTC).  The agency charges that Credit Karma's alleged actions caused people to waste time on applying and, in some cases, even caused them to wind up with a lowered credit score once they were denied. 

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The FTC sent letters and email with Claim IDs to people eligible to apply. However, if you did not receive one and believe you should have, you can call the claims administrator at 1-866-848-0871.

The action comes as the overall banking and financial services sectors face government scrutiny over concerns including making false or misleading claims, and as the country's credit card debt hit a record $1 trillion.

Credit Karma fundamentally disagrees with the allegations that relate “solely to statements we ceased making years ago,” a company spokesperson told Kiplinger in an emailed statement.

“Any implication that Credit Karma rejected consumers applying for credit cards is simply incorrect, as Credit Karma is not a lender and does not make lending decisions,” the spokesperson said, adding that the company helps its more than 130 million members understand their finances including the likelihood of financial product approvals.

"We have a track record of positive outcomes, and members shopping for credit cards on Credit Karma have a significantly higher approval rate than the national average," the company spokesperson said. "We reached this agreement to put the matter behind us so we can maintain our focus on helping our members find the financial products that are right for them.”

Offers to those who did not qualify

The settlement stems from a September 2022 FTC investigation into Credit Karma's alleged use of claims that people were pre-approved and had "90% odds" of approval. The claims were made in an effort to entice people to apply for offers that in many cases they did not qualify for, the FTC said.

To use Credit Karma's services such as credit score monitoring, people must provide personal information, including credit and income information, which the company used to send targeted ads and recommendations for financial products such as credit cards, the FTC said.

The agency alleges that, from February 2018 to April 2021, the company deceived consumers about whether they were approved and that nearly one-third of those who applied were denied credit offers. When consumers applied for these offers, third-party companies made a “hard inquiry” on their credit reports, which in many instances lowered consumers’ credit scores and harmed their ability to secure other financial products in the future, the FTC said.

Where to apply for a payment

If you receive an email or letter with a claim number, you can apply for a payment online. If you have questions or are seeking assistance, write to or call 866-848-0871. 

The amount of the payment will be determined by a number of factors, including how many people choose to file, the agency said. The FTC has not yet set a date for mailing payments but said it will update this page when more information is available.

The deadline for filing a claim is March 4, 2024.


Jamie Feldman

Jamie Feldman is a journalist, essayist and content creator. After building a byline as a lifestyle editor for HuffPost, her articles and editorials have since appeared in Cosmopolitan, Betches, Nylon, Bustle, Parade, and Well+Good. Her journey out of credit card debt, which she chronicles on TikTok, has amassed a loyal social media following. Her story has been featured in Fortune, Business Insider and on The Today Show, NBC Nightly News, CBS News, and NPR. She is currently producing a podcast on the same topic and living in Brooklyn, New York. 

With contributions from