YNAB vs. Credit Karma Budget Tools

Refreshed like your fridge after payday! Updated: August 8th, 2025

Mint’s strong suit was expense tracking and spending reports, but it also had key budgeting features that Mint users have used for over a decade. 

Now, Credit Karma is a popular personal finance app in its own right with a whopping 100 million members. However, it doesn’t offer an option that allows users to proactively manage their money.

Credit Karma users will be able to track their net worth, see a breakdown of their monthly spending, check their bank account balances, and connect their financial institutions to Credit Karma, but they will not be able to set spending limits, create monthly budgets, or track their progress on savings goals. 

Credit Karma is not a budgeting tool (and gravy is not a beverage). 

So, to answer the question: Is Credit Karma the best budgeting app for former Mint users? Probably not. 

Why Use Credit Karma to Track Monthly Spending?

Right at the top of Credit Karma’s home page, they explain that “Intuit Credit Karma uses your credit profile to show you curated recommendations.” 

In short, Credit Karma offers some services, but they ultimately exist to advertise to you. That might sound like a cynical take, but it can be useful. Credit Karma will use your valuable data to show you financial products you might find helpful. And Credit Karma will also show you your credit score and debt while finding for free and give you ideas on how to improve your credit. With better credit, you’ll be more qualified to take out personal loans, which leads to more revenue for Credit Karma. 

It's a cycle that's good for Intuit, good for lenders, and might be useful for you too. So if you just want to track your credit score and debt while finding new investment accounts, credit cards, savings accounts, and other financial products, there's nothing wrong with only using Credit Karma.

But if you have no option but to try something new, why not go with something that’s different but still meets your needs? And what if that something fulfilled needs that you didn’t even realize you had? 

What if this change was an opportunity to build better habits and to get more clarity about your money and your goals? 

Learn more: YNAB vs. Mint: A Better Way to Manage Money

Why use YNAB?

YNAB has been changing the way people think about money for 20 years now (and we're not going anywhere).

Imagine never second-guessing your spending. Imagine saying goodbye to cash flow issues. Imagine never needing to check your checking account balance before making a purchase. Imagine the relief of always knowing your spending is worth it and never feeling guilty or doubtful about your money… ever!

YNAB accomplishes all of this and more by helping you give every dollar a job. And while that might sound simple, it opens the door to a transformative way of thinking. The YNAB Method is guided by five key questions that help you gain clarity, build confidence, and feel great about your decisions. Each question represents a different focus area, and together they create a full picture of a spendful life.

Reality: What does this money need to do before I’m paid again?

This question is your foundation. Knowing how much money you have and what it needs to cover before your next paycheck helps you spend with intention instead of impulse. You’re not guessing anymore; you’re guiding your money where it needs to go. No more accidentally spending rent money on a dinner out. This question anchors you in the present and helps you meet your financial goals.

Stability: What larger, less frequent spending do I need to prepare for?

Life isn’t monthly. Your dog needs a vet visit, your car needs tires, your cousin is getting married in October. These aren’t surprises, they’re certainties. Asking this question helps you break big, occasional expenses into small, manageable monthly chunks. You smooth the road ahead so future-you isn't stressed (or stuck).

Resilience: What can I set aside for next month’s spending?

This is where the magic starts to build. When you begin setting aside money for next month, you’re creating breathing room. Emergencies feel less like emergencies, and more like "handled." You’re spending from a place of calm, not crisis. And you're no longer reliant on your next paycheck. This is where your financial confidence really starts to grow.

Creation: What goals, large or small, do I want to prioritize?

Whether it’s a trip to Italy or a new pair of boots, your goals matter. This question connects your daily money choices to the life you want to build. Saving doesn’t feel like a sacrifice anymore—it feels like progress. Like momentum. Like joy.

Flexibility: What changes do I need to make, if any?

Plans change. Priorities shift. That’s life. YNAB gives you the permission and tools to adjust with your eyes wide open. Whether it’s a job change, a leaky roof, or just a mid-month craving for sushi, you can move money around without guilt or shame. Why? Because you have a plan that lets you weigh the tradeoffs and discover what you truly want. You’re still in control, just adapting.

The YNAB Method is what sets YNAB apart from any other option for managing money. Others give you math, numbers, and graphs. YNAB gives you a habit-building tool that supports and inspires you to fund a future you'll love living in.

Learn more: YNAB Isn’t a Mint Alternative—It’s Better

YNAB or Credit Karma—Do You Have to Decide on One Budgeting App?

Let me come right out and say it: When it comes to YNAB or Credit Karma, it’s not an either-or decision. You can certainly use both. Why? Because the two apps serve very different purposes. 

YNAB will guide you through a set of habits to discover how you want to spend your money. It produces a proactive approach to money management, along with flexibility so you can change your plan along the way—without guilt or shame, but with full awareness of any potential tradeoffs you’re making. It offers a big picture perspective of your finances and includes helpful features like a loan payoff planner, targets for spending and saving, and the ability to share your subscription.

Credit Karma is helpful for tracking expenses, such as monthly payments and transactions, checking your credit score, getting recommendations for financial products, and partaking in a passive financial overview. 

They both have a place and a purpose. 

A Word About Your Data

Another key difference between YNAB and Credit Karma has to do with your data and the business models of the companies behind the product.

Credit Karma makes money when you purchase products from their advertisers. That means Credit Karma’s customers are financial institutions, not their users. The problem with this business model is there is an inherent conflict of interest. Because Credit Karma makes money through advertising, there is always a tension between doing what’s right for their users and pushing products that will make them the most money.  

The only way YNAB makes money is directly from their users through a subscription. That means you are always the customer, never the product. YNAB succeeds when you succeed. That means all the incentives are pointed in the direction of helping you. That’s why we have award-winning customer support! That’s why YNAB offers free education. That’s why YNAB is out to change your life and Credit Karma is out to sell you debt products. 

In the fintech world, YNAB’s business model is proven and has longevity. Mint may be shutting down in part because they were never able to be profitable under the free version of their software. Even offering some new Mint features and functionality behind a paywall did not save the product. A financial app needs to be reliable and remain for the long haul, which is why a simple, proven business model is better for the company and the customer. 

Do You Want to Change Your Life?

When was the last time you’ve heard someone say that a money-planning tool changed their life? At YNAB, we hear that from users every single day. Really.

If all you want is to track your credit, check your financial account balances, and find deals on credit cards, Credit Karma may be enough for you. 

But if you want to change your life, if you want to love the way you spend your money, try YNAB. And, hey! If you want to do both, that’s fine too! We’ll be here to help. 

Mint shutting down may have thrown you for a loop, but you can turn it into an opportunity. Migrate your mint data to YNAB and sign up today. It’s free for a month!