CreditKarma vs. EveryDollar: What’s the best personal budgeting app for you?

FeaturesCredit KarmaEveryDollar
Credit Score Tracking
Monitors your credit score and shows its relation to your overall financial health, indirectly reflecting the impact of online shopping on your score.
Does not offer credit score tracking.
Credit Card Usage Tracking
Provides an overview of credit card balances and payment history, reflecting how online shopping affects your credit usage.
Does not directly track credit card usage, but allows you to manually input and categorize credit card expenses.
Expense Tracking
Does not provide a detailed breakdown of individual transactions or expense categorization.
Allows for detailed expense tracking, including categorizing online purchases, which helps identify and control online spending habits.
Budgeting Method
Doesn't specifically adhere to a budgeting philosophy, but provides insights into overall financial health.
Promotes zero-based budgeting, which can be a helpful method for curbing compulsive online shopping habits by ensuring every dollar is accounted for.
Debt Pay-Off Tracker
Does not offer debt tracking.
Allows you to track progress on debt pay-off, offering insight into how cutting down online shopping can speed up the process.

Budgeting apps have become essential tools for managing personal finances and controlling compulsive spending. Today, we are going to compare and contrast two popular budgeting apps: Credit Karma and EveryDollar. Each has its strengths and limitations, particularly when it comes to understanding online shopping habits.

Credit Karma

Credit Karma is widely known for its free credit tracking service, but it also offers a multitude of financial management features. Let’s delve into its budgeting features and how they can help curb online shopping habits:

Key features:

1. Credit Score Tracking: Credit Karma provides a free credit score from two of the three major credit bureaus: TransUnion and Equifax. This feature helps users understand how their spending habits, including online shopping, affect their credit health.

2. Credit Card Usage: It offers an overview of credit card usage, which includes current balances, payment history, and debt-to-income ratio. If you use credit cards for online shopping, this feature will help you understand the impact on your overall financial health.

3. Detailed Financial Accounts Summary: Credit Karma provides detailed information about your various financial accounts like loans, credit cards, etc., contributing to a comprehensive understanding of your overall financial outlook.

4. Unclaimed Money: As an additional perk, Credit Karma can help you find unclaimed money that may be waiting for you in a government office, providing a nice surprise boost to your budget.

Online Shopping Habits:

When it comes to understanding your online shopping habits, Credit Karma’s strength lies in its focus on credit health. However, it falls short in offering granular details about individual transactions. It lacks the ability to categorize and track expenses directly. You’ll be able to see your credit card balances increase and understand the impact on your credit score, but you won’t have a specific breakdown of your online shopping spending.

EveryDollar

EveryDollar, created by the team behind financial expert Dave Ramsey, is a premium budgeting tool that prioritizes zero-based budgeting, a method that gives every dollar a job.

Key features:

1. Zero-Based Budgeting: EveryDollar promotes this method, which involves making an income minus outgo equal zero each month. This ensures every dollar is accounted for and helps reduce impulsive spending including excessive online shopping.

2. Expense Tracking: EveryDollar allows users to track expenses in detail. Each purchase can be categorized, enabling users to see exactly what their money is being spent on.

3. Debt Pay-Off Progress: One of the app’s unique features is the ability to track your progress as you pay off debts, be it student loans, credit cards, or other liabilities.

Online Shopping Habits:

EveryDollar excels in helping you understand your online shopping habits. With its detailed expense tracking feature, you can categorize your online spending into different buckets like clothes, electronics, or subscriptions. Over time, you can see patterns in your online shopping behavior and use this information to set spending limits, thus controlling your compulsive spending habits.

In conclusion, Credit Karma and EveryDollar are both useful budgeting apps, but they serve different purposes. Credit Karma is a great tool for credit tracking and understanding the big picture of your financial health, including the impact of online shopping on your credit scores.

On the other hand, EveryDollar is a suitable choice for someone who wants to delve into the nitty-gritty of their spending habits, including specific tracking of online purchases. It helps you assign a purpose to every dollar, which can be particularly helpful if you’re trying to control compulsive online shopping.

As always, the best choice depends on your personal needs and financial goals. Consider what aspects of your financial life you need most help with before deciding on the right tool for you. Happy budgeting!

What Else? Are these not the perfect fit?

Curious what else is out there in the land of personal budgeting apps? Not convinced that this is right for you? No worries! We’ve analyzed and compared 42 (!) different pairs of personal budgeting apps and you can check out our main jumping-off point for the set of reviews here: Choosing a Personal Budgeting App – What’s Right for You?

Have a personal budgeting app that you’d like our thoughts on? Drop us a line and we’d love to add it in. 🙂