FTC officials said nearly one-third of people who applied for those offers were ultimately denied and that misrepresentation impacted their credit scores.
This happened between 2018 and 2021, CNN reported. It's unknown how many people were affected.
Credit Karma said it disagrees with the FTC but is settling to avoid disruptions.
Credit Karma allows people to monitor their credit information for free, but it gets paid when customers are approved for loans or credit cards.