Consumer complaint received 2025-04-28 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: Credit Karma, LLC
State: NJ

Complaint narrative:
Credit Karma sent me an email inviting me to Check My Rates on a personal loan and very clearly stated that 'Checking My Rate Won't Affect Your Credit Score '. I did check my rates and when I saw them, I took no further action, I did not click for more info or click to submit an application. I did none of that. And then immediately afterwards I received a notice that one of their partners, XXXX XXXX, had initiated a hard pull on my credit. I contacted Credit Karma support and got no help just a bunch of generic comments that did not pertain to my situation. Full exchange below. This is plain and simple false advertising. 

Today XXXX XXXX Virtual Support joined XXXX XXXX Hello! Im an automated, always-on resource designed to support questions or issues with your XXXX Credit Karma account XXXX 

Type a few keywords or tap a topic below to get started. If you find you still need help, I can get you to a live expert. 
Virtual Support XXXX XXXX o Sign Up Help o Login Help o XXXX Refund Advance o Credit Karma Money Spend/Save o View More Topics View More Topics Sent XXXX XXXX Please select from the following options : Virtual Support XXXXXXXX XXXX o Credit Health o Financial Products o Manage Account o Something Else o Main Menu Financial Products Sent XXXX XXXX Which financial product would you like more information about? 
Virtual Support XXXX XXXX o Personal Loans o Credit Cards o Auto o Home o Main Menu Personal Loans Sent XXXX XXXX  Please select from the following options : Virtual Support XXXX XXXX o Karma Guarantee on personal loan offers o Will applying for a financial product lower my credit scores? 
o Applying for a personal loan overview o Personal loan application status o Why was my personal loan application denied?

o Notice of Adverse Action o Back to Financial Products Menu Will applying for a financial product lower my credit scores? 
Sent XXXX XXXX Browsing offers on Credit Karma does not affect your scores, but applying for a financial product, such as a loan or credit card, can. Check out this article to learn more : Will applying for a financial product lower my credit scores? 
support.creditkarma.com Please select from the following options : Virtual SupporXXXX XXXX XXXX o I'm all set o I still need help o Back to Financial Products Menu I still need help Sent XXXX XXXX Would you like to chat with a live expert? 
Virtual Support XXXXXXXX XXXX Yes Sent XXXXXXXX XXXX  I'll connect you to someone who can help. Please keep this window open an expert will be with you shortly. 
Virtual Support XXXX XXXX Transfer requested at XXXX XXXX Virtual Support left XXXXXXXX XXXX XXXX XXXX joined XXXX XXXX I don't appreciate being told checking your rates won't affect your credit score and then finding out there was a hard pull on my credit. Before you tell my applying for the loan affects my credit, I didn't do that, all I did was review the rates presented to me and then declined to proceed. This is false advertising and I am keeping documentation of this. 
Specifically, it was XXXX XXXX that did a hard pull on my credit Sent XXXX XXXX Hi XXXX, thanks for chatting with our Virtual Support. Im XXXX and happy to help you from here. 
From reviewing your messages, it seems like you may need additional assistance with a hard inquiry from a lender while viewing some offers To clarify, comparing and looking at offers on Credit Karma does not affect your credit scores, but applying for a financial product ( such as a loan or credit card ) typically affects your scores. 
If you see an offer you like and decide to apply, you can click through to the lenders site to fill out an application. When you apply, the lender will review your application and check your credit when making the lending decision. This can cause a hard inquiry, which may cause a drop in your credit scores whether you are approved or declined.

The good news is that even though hard inquiries usually stay on your credit reports for about two years, their impact tends to wear off after some time.

Please keep in mind that we can't know for sure if lenders will approve or decline applications, however, we do the best we can to help you narrow down your choices. 
XXXX XXXX XXXXXXXX XXXX  Yes, your service says it won't affect my credit score just checking my rate, but it did. And, just like I thought you would you would say it was because I applied, but I never went beyond the review page, I did not apply for any loans and there should not have been a hard pull. 
I don't know if you can reverse this or not, but you should not advertise that 'checking your rates won't affect your score ' if it not true. 
Again, please stop saying it is because I applied, because I did not. As soon as I saw the rates, I stopped and did not proceed to the application stage. 
Sent XXXX XXXX Checking your Personalized Offers on Credit Karma is not an actual application for a financial product. It is an optional step before you apply for a loan that may allow you to access additional offers beyond what you see on the main Credit Karma marketplace page. Credit Karma doesnt submit applications for financial products on your behalf. You can read more about this in our Privacy Policy and Terms of Service. XXXX XXXX XXXX XXXX XXXX XXXX If you see an offer that you like on Credit Karma and decide to apply, you can click on apply now and it will take you directly to the lenders site to fill out an application. When a financial services company reviews your application, theyll check your credit, which typically causes a hard inquiry that can impact your scores. 
If you have any further concerns about hard inquiries, you can review the hard inquiries on your credit reports to look for any recent changes : XXXX  Credit Report : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX We want Personalized Offers on Credit Karma to be as helpful as possible for our members, so if you have any feedback on improving your experience on Credit Karma, were all ears. 
XXXX XXXX XXXX XXXX Is there anything else I can help you with today? 
XXXX XXXX XXXX XXXX XXXX XXXX left XXXXXXXX XXXX  No, you have not helped at all and I don't believe you will Sent XXXX XXXX XXXXXXXX XXXX joined XXXX XXXX Hi XXXX, my name is XXXX and I'll be helping you out today. 
XXXX XXXX XXXXXXXX XXXX  I'm reporting Credit Karma to the XXXX XXXX XXXX  for false advertiing Sent XXXX XXXX  From reviewing your messages, it seems like you may need additional assistance with your Credit Reports since you are getting hard pulls in your reports after you try to applied for financial products. 
XXXX XXXX XXXX XXXX  And the Consumer Financial Protection Bureau Sent XXXX XXXX Please let me help you with that process to check more information here, I understand how important this is for you. 
XXXXXXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation