Credit Karma‘s tagline for the guarantee is “Get approved or get up to $50.” Each offer shows its payment amount, but an approval can come on whatever terms the issuer sets.
Issuers usually set your credit limit only after you apply. Card offers often list the APR, a card’s annual interest rate, as a range, and the issuer sets your rate within it, typically based on your credit. If you’re approved at the top of that range with a small limit, Credit Karma pays nothing. On personal loans, its guarantee also pays $50 for an approval on worse terms, but its card guarantee pays only for a decline.
Whether you’re approved or declined, applying typically adds a hard inquiry, the credit check an issuer runs on your application, to your credit report. The payment doesn’t remove it.
So run the issuer’s own prequalification check first, if it has one, since it estimates your approval chances with a soft inquiry, which has no effect on your credit scores. If you prequalify, apply through the Credit Karma offer itself, because the guarantee covers only applications made there. Then, to collect the payment if you’re declined:
- Finish the whole application, including any documents the issuer asks for, while logged in to Credit Karma with a verified U.S. phone number on your account.
- Enter your real income even if it differs from Credit Karma’s estimate. If changing it ends the guarantee, Credit Karma tells you before you submit.
- Apply at least 365 days after any earlier Karma Guarantee payment and at least 90 days after a decline on any offer with the badge or an earlier application for this card.
- After a decline, watch for Credit Karma’s email and finish redeeming, including any identity check, within 90 days of when it was sent. You get the money on a prepaid card or a gift card.
Apply because you want the card, not for the chance at a payment.
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