How Credit Sesame Works
Your credit score is one of the most important aspects of managing your personal finances. A good credit score can open the door to borrowing opportunities and reduce your fees when you take advantage of them.
However, understanding what your credit score means or how to improve it can seem daunting. Luckily, there are several tools available online to help you easily track and manage your credit score. One such tool is Credit Sesame.
Since it was founded in 2010, Credit Sesame has helped more than 16 million people improve their credit scores. But what exactly is Credit Sesame, and how does the platform work?
The Benefits of Credit Sesame
Credit Sesame is an online platform and mobile app with tools to help consumers make informed credit and loan decisions. Though the company does offer paid services, the use of the platform itself is free.
With a free Credit Sesame account, you can:
- Check your credit score
- Read your credit report
- File credit disputes
- Protect your identity
- Learn about new borrowing opportunities.
How To Use Credit Sesame To Manage Your Credit
Follow these steps to set up your Credit Sesame account:
- Enter your email address in the “Email Address” field on the Credit Sesame homepage and click “Get Started – 100% Free.”
- Create a password for your account.
- Answer the questions to verify your identity.
Once you’ve created your account, you’ll see a screen that shows your credit score and links to credit and debt analysis data.
As you comb through your data, Credit Sesame will show you whether your credit score is low and provide solutions to help you improve it.
How Credit Sesame Makes Money
Credit Sesame is a for-profit company. So, you may be wondering how the company makes its money when it offers so many services for free.
There are three ways Credit Sesame drives revenue through its business model:
- Targeted advertising
- The Sesame Cash prepaid card
- Premium subscriptions
Find the details on each below.
Credit Sesame works with banks, other financial institutions and service providers to match its customers with the best financial products. The company receives an advertising commission when a customer signs up for one of Credit Sesame’s recommended financial products.
Although these commissions on sales may seem concerning, Credit Sesame views them as a “when you win, I win” result. It costs quite a bit of money to run the algorithms to match you with the best products. The revenue generated with these affiliate relationships allows Credit Sesame to continue offering these services free of charge.
Sesame Cash Prepaid Card
Credit Sesame has partnered with Community Federal Savings Bank to launch the Sesame Cash prepaid debit card. You can load money on the card and use it for purchases, just like you would a traditional debit card.
The company isn’t clear about how it makes money from its Sesame Cash offering. However, most companies that partner with banks to release prepaid debit cards make money through interchange fees.
Finally, most features on Credit Sesame are free, but the company does offer a premium subscription for $15.99 per month. The premium subscription comes with additional perks, such as the ability to view your credit report from all three major credit bureaus rather than just one.
The company hasn’t publicized how many users pay for premium subscriptions, but it has helped more than 16 million people improve their credit scores. Even if only 1% of these people signed up for premium, that would equate to more than $2.5 million in monthly revenue.
Credit Sesame is a free service that helps you track and manage your credit, protect your identity and take advantage of products that could improve your financial stability. You can start your credit improvement journey by signing up for the service.
Credit Sesame FAQFind answers to the most common questions about Credit Sesame below.
- Is Credit Sesame a legitimate company?
- Credit Sesame has been serving customers since 2010 and has helped millions of people improve their credit scores. They offer many legitimate services for free.
- What does Credit Sesame do?
- Credit Sesame offers a platform to track, manage and improve credit scores.
- Which is better, Credit Karma or Credit Sesame?
- Credit Karma and Credit Sesame are very similar. There are some subtle differences that make each suitable for different audiences. For example, if you want more reports for free, Credit Karma is the way to go because it provides data from Transunion and Equifax, whereas Credit Sesame only offers Transunion data.
- Credit Karma also provides access to more financial services and a stronger credit score simulator. On the other hand, Credit Sesame offers stronger identity theft protection products and a more comprehensive view of your credit on its dashboard than Credit Karma does. So, you may want to use them both to get the best of both worlds.
- Does Credit Sesame affect your credit score?
- Checking your credit with Credit Sesame has no effect on your credit score.
Information is accurate as of Nov. 28, 2022.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.