A Guide to Credit Karma's Free Credit Scores
A Guide to Credit Karma's Free Credit Scores

As a Credit Karma member, you have access to four free credit scores: your TransUnion Credit Score, Vantage Score, Auto Insurance Score, and Home Insurance Score. All four of these scores are calculated from the data in your TransUnion credit report, but they differ slightly in their factors and uses.

TransUnion Credit Score

This score, which ranges from 300-850, is calculated from TransUnion's proprietary scoring algorithm. It is used by lenders to assess a consumer's creditworthiness, or the chance you'll default on a loan or line of credit, and can influence lending decisions. Your TransUnion credit score is derived from the following factors:

Read more about the factors that make up your credit score.


VantageScore

The VantageScore, which ranges from 501-990, is a credit scoring model created collaboratively by the three major credit bureaus: Equifax, Experian, and TransUnion. With this score, the credit bureaus aim to make credit scoring more consistent and accurate across all the bureaus. In order to make it more understandable for consumers, VantageScore grades consumers' creditworthiness on an easy A to F letter scale:

  • A: 901-990
  • B: 801-900
  • C: 701-800
  • D: 601-700
  • F: 501-600

VantageScore has released the categories of its credit score calculation and how each is weighted:

  • Payment history (32%)
  • Credit utilization (23%)
  • Credit balances (15%)
  • Depth of credit (13%)
  • Recent credit (10%)
  • Available credit (7%)

Traditional credit scoring models weigh credit history heavily, and consumers with shorter credit histories often generate a "thin file." The VantageScore model tries to remedy this by putting more weight and emphasis on the past 24 months of credit history.

Although the VantageScore is newer than other credit score models, it is currently used by four of the top five financial institutions, five of the top five credit card issuers, and two of the top five auto lenders.


Auto Insurance Score

Your Auto Insurance Score, with ranges from 150 to 950, is also calculated using data from your TransUnion credit report and is used primarily by auto insurance companies. It helps insurance companies assess the risk of insuring a consumer by measuring the likelihood that a claim might be filed.

The fact that data in your credit report can affect your auto insurance rates may seem unfair, but studies show that there is a correlation between credit behavior and the likelihood a consumer will file a claim. In other words, consumers with higher credit scores tend to file fewer insurance claims and, as a result, are typically given better rates.

Your Auto Insurance Score is used by the 15 largest auto insurers to measure insurability and price your rates.

Home Insurance Score

Like the Auto Insurance Score, the Home Insurance Score ranges from 150 to 950 and is calculated using data from your TransUnion credit report. It is used primarily by home insurance companies to help assess the likelihood that you'll file an insurance claim.


The Bottom Line: Remember that these four scores will differ from one another because they weigh the data in your credit report differently. Therefore, it's important to pay attention to and track the factors influencing your score , rather than just the three-digit number. Working on improving the individual factors should result improved credit health across the board. Credit Karma provides these four credit scores free of charge, so come back to update and check your progress as often as you like.


All Comments
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Helpful to 1951 out of 2053 people

My FICO score has changed from the mid-600's to the low 700's, and back - with no change in my finances or the way I pay my bills.  In fact, my score should be getting better.  I had some trouble a few years ago, but resolved that debt and have been on time with everything since then.  The formula - whatever it is - seems to get a different answer depending on what day the question is asked.  I think it's time to make anyone who offers credit to give you the FICO and/or other scores used to determine your suitability for their credit product or the amount of credit you can get.  And all of these scores should be free to the consumer any time, not just once a year.  All of those credit card offers or checks offering to let you transfer balances should be accompanied by the credit score used to make the offer, or if the offer is only an invitation to apply, then the credit score needed to get the invitation should be given.  It is clear that different companies use different scoring mechanisms.  I have credit cards with lines over ten thousand - and cards with only $500 or a thousand.  How am I a good bet to repay $10,000 to some card issuers, but a major risk that merits a low credit line with somebody else?  These numbers may make sense to the people that devised them, but they make no common sense to consumers.  That needs to change.

Comment by
cujoslave9

1 Contribution
1951 People Helped
Helpful to 1374 out of 1462 people

I totally agree - I have close to zero debt and always pay my bills on time but can't get my credit score over 700. So the whole sytem is set up to keep everyone in debt and paying high interest.

Reply by
porphire

2 Contributions
1374 People Helped
Helpful to 942 out of 1002 people

I agree with you 100%. I have similar experiences. How is anyone supposed to know where they stand when this system is so complex. It does not really measure anyone's credit worthiness.

Reply by
globee3

1 Contribution
942 People Helped
Helpful to 3 out of 3 people

I use my credit card every other month charge 30 percent pay it off and let it go dorment for 30 days it seems to help my score go up. Truth is actually better than buying a car. you only get bonus points on car loan if you pay it off early and only if paid off 1 year before its suppose to be. On credit cards its when their paid off for 30 days. system is warped. that why tell every one to get a full credit report and dispute any thing wrong. Not every thing on them is accurate. Just like the advice here its bias they have lexington law and capital one as sponsors. Pay credit management sites give more accurate advice. but got to make sure they cancel your account when you leave one. I had to cancel one twice but they had all the links for disputes for credit reports

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Reply by
ernestf01

15 Contributions
483 People Helped
Helpful to 6 out of 7 people

I agree with you 100%.  I paid off a mortage in the last 6 months and have NEVER been late on any payment and my credit score went down.  It seems like if you keep a high credit balance and pay minimum..... the formula loves that.  

Reply by
wm4d

1 Contribution
6 People Helped
Helpful to 31 out of 43 people

msgpetersen:

Your credit cards have been issued with limits of varying amounts for a reason. 

1.How many credit cards with a $10,000+ balance available do you hold?

2. Which chronological order did you obtain your credit cards?  Higher limits before lower limits or lower limits first?

3.  Number of credit cards, total amount of combined limits

4. Number of months you have had each credit card--and charged $ to it-- will effect your credit  score.

5. Payment history.

Reply by
KimberlyC66

1 Contribution
31 People Helped
Helpful to 3 out of 4 people

i decided to pull my credit score per experian and i was outraged they show a lower credit score then i had when i bought my suv in 2012 that toyota financial financed i contacted them and got in an arguement with christine and she could not explain why it was so low and i have had no more derogitory credit on my file since 2010 i only have one derogatory mark which dropped or should have dropped in august 2013... 

Reply by
bubbls43

4 Contributions
35 People Helped
Helpful to 1 out of 2 people

I think if a companys makes you a offer your credit report shouldnt even take a hit. They got information from else were. It should be on them not you. I allso think since credit bearu info is ilegally obtained threw other sources and inaccurate to even out the playing field credit and loan companys should be obligated to offer you the lowest interest for your score since they are using ilegally obtain info to determine it. I once went to equifax and 70 percent of info was wrong so know it wasnt giving bye me lol

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Reply by
ernestf01

15 Contributions
483 People Helped
Helpful to 1 out of 2 people

Credit card companies do typically provide you with the score they used to make a decision, as well as the primary factors influencing (reducing) that score, after you've applied. Typically they send a letter in the mail along with their decision. My understanding (not sure) is that they're required to do this, but only in cases where you actually apply. Junk mail offers aren't included (they aren't based on a hard pull of your credit score).

Reply by
eliot1785

4 Contributions
3 People Helped

I totally agree with you! I also don't agree that companies can "buy" a negative item on your credit just before the seven year period is up and then start it over as if its a new item! I have things on there from a divorce in the 80's that just finally dissapeared. They should make an exception in divorce cases. 

Reply by
Outofdatecredit

1 Contribution
0 People Helped

Its a game with the Banks they run this country, and set up on what they can make more money off everyone,

Reply by
jonkrz

1 Contribution
0 People Helped

i agree how can credit karma help anyone when the scores are not accurate also they are giving you offers that makes you make bad decisions...the credit system is the mark of the beast....are we blind...

Reply by
creditcrap1971

1 Contribution
2 People Helped

That should change, not "needs to change".

Reply by
ScreenName1957

3 Contributions
0 People Helped

It should change, not  "needs to change".

Reply by
ScreenName1957

3 Contributions
0 People Helped

I agree,  my credit score increased 19 points in one week, yet nothing has changed.  I have never had a credit problem but can't seem to have perfect credit.  My score is now 777 why isn't it 850?

Reply by
papa6smurf

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0 People Helped

Exactly

Reply by
Tallen00001

1 Contribution
0 People Helped

I also have the same issue but I have never had any past issues with 100% on time payments and pay more than the bill , I will never understand how they determine these scores 3 credit agencies and different reports and One big name card always uses your lowest score of the three which hurts your credit when the other 2 has a 30 point higher rating they never use either of those and "Why do someone looking at your credit lower it that is "CRAZY"

Reply by
bestus

3 Contributions
0 People Helped

I agree I check my reports everyday I pay all bureaus every month it is crazy that a credit co can report you owe them an amount and your score goes down until they report what you paid on you payment weeks later then if you paid enough your score will go back up everyday mine is all over the place I have 31 credit cards some 10,000 ,75,000  ,8,000 all visas 3 months old but old navy and 8 other retailers gave me150.-200 dollars when I use each card and it reports never over 30 percent and usually pay them in full my score drops cons tally but some days it jumps 100 to 200 points in a day when it is reported I paid one each one I don't know what day to buy a car so I will watch everyday and when at the highest buy my car that day this whole thing is like credit communism period it needs to be fixed we need more rights but until the people speak and start petitions on change.org nothing will change so start potions on Change.org u get thousand of signatures everyday online from people I sign 100'sa day to help desperate people please look into it and all of you sign a petition and send it to the president or congress let's bombard them and make a change thanks CalletteCallette

Reply by
Callettec

2 Contributions
1 Person Helped

Ripoff off transunion, etc want you to be in debt over your head to get a high score in kahoots with wall street and big banks.

Reply by
paralegalmark

1 Contribution
0 People Helped

I totally agree the whole system is bogas and favors the creditors. I carry low balance and am practically debt free so my credit score went down. Go figure that. I always pay my bills on time etc. so I'm penalized for not having a lot of debt and we wonder why this country is in such crisis financially!!

Reply by
porphire

2 Contributions
1374 People Helped

the system is not complex, the systems are made to gather all your personal information and add to your history in the archives. All these deals and formulas are meant to keep you in the dark and are always hidden from consumers with the BS "privacy" note.

Reply by
Thegood

1 Contribution
0 People Helped

So true ... just like your Auto Insurance Score has nothing to do with your driving histroy, but based on your "likelihood that you will file a claim"  I haven't filed a claim on any auto insurance since the two claims I had when I was in college in the 80"s, and yet my score is only 800 . I have also only been late on a payment 1 time in the last 10 years ... where is the logic in this?

Reply by
barbunny2012

2 Contributions
1 Person Helped

i do not understand why my score dropped overall, nothing has changed and my payments have been ontime, and my score dropped ?  within one month it dropped?

Reply by
cwrght1

1 Contribution
0 People Helped

If some of your credit cards have high limits and some low limits and you would rather have high limits on the low limit cards, call the credit card company and tell them that your other cards have higher limits and ask them to raise your limit to the limit of your other cards, Many times they will. 

Reply by
cash4090

1 Contribution
0 People Helped

I would love to have an understanding of how my credit score is calculated. A video explaining how the scores are calculated would be helpful in understanding how to increase low scores and maintain high scores.

Reply by
MrsC1901

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0 People Helped

now if we could just get this to the proper people or machine..................

Reply by
watzzzzzup

2 Contributions
0 People Helped

THIS REPLY should be to all who make money on credit transactions if you cant be fair in your buisness you should be investigated by a neutral judging system. if found guilty of inproprieties. You should be gone from the system.

Reply by
moneydown

4 Contributions
10 People Helped

I dont know what to think about my credit score. I pay all of my bills on time. Im currently paying off a credit card (will be done in 3 months)...I only have the 1 credit card, no car payments, no onther credit cards...of course i do have several medical collections. I dont see how that can go against your credit.

Reply by
porcelain83

1 Contribution
0 People Helped

Trans Union has accounts on my record in Collections that are NOT MY ACCOUNTS, PLEASE REMOVE THESE 3 ACCOUNTS NOW, THESE ACCOUNTS ARE NOT MY ACCOUNTS

Reply by
zonethompson18

1 Contribution
0 People Helped

One factor that will change and can affect this situation is 'length' of time on a credit account. The longer you have had said established credit and, hopefully, a good or improving record, the better your score may be. That is why you see advice 'not to cancel' credit accounts, or more importantly, NOT to cancel the oldest ones.

Bankrate.com is a great site to do research and learn about finance, and their article are written in an easy to understand way.

Reply by
TerBoTo

1 Contribution
0 People Helped

Perfectly said. The credit bureaus are holding Americans as prisoners.They should not have so much control of our lives. The information they report is often in error. Numbers divised by parties with little knowledge of, or regard to the individual's character is ridiculous. I AM NOT A NUMBER! Where is the respect?

Reply by
1clynthia2

1 Contribution
0 People Helped

You are correct!  I think we should write our congressmen and get rid of the credit bureas!

Reply by
catherinem7ulholland

2 Contributions
0 People Helped

The reason you can get a $10,000 credit line with one company, but then another only gives you $500 is because you already have the $10,000 limit. When companies evaluate your ability to repay, they also look at all the other available limits you have with onther companies. Basically, they don't want to drown you in debt so they math it out to determine if you would be able to make your payments if you maxed out all the available credit you have. Then they give you a line accordingly. So when looking at what limit a company will give you, look at all your other cards too. It's pretty freaking simple if you use your brain and think like a lender!

Reply by
kellsita

2 Contributions
0 People Helped

Would you tell me what fico is? heard of it all my life and cannot remember

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Reply by
RESANDLIN

14 Contributions
8 People Helped

I AM 63 YEARS OLD AND HAVE ALWAYS HEARD OF "FICO" WOULD SOMEONE TELL ME WHAT THAT IS. JUST MADE A BALANCE TRANSFER FROM ONE CARD TO ANOTHER WITH 0% INT. FOR 14 MONTHS. MY CREDIT SCORE WENT FROM 737 TO 770. GO FIGURE

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Reply by
RESANDLIN

14 Contributions
8 People Helped

I agree with you and have had some similar experiences, though my credit rating is always good or excellent.  I am also disturbed about the mortgage insurance score.  How do they come to this score? What is the criteria, and since I have not filed against my homeowners, why is my score showing the low side of fair?

Reply by
lindalaughs777

3 Contributions
0 People Helped

I have a credit score of 500 because I dont use credit cards, I am a high risk because I pay all my purchases with cash and carry no debt.  That is stupid 

Reply by
cjaccardi

2 Contributions
0 People Helped

Use correct terminaolgy: That SHOULD change, not, "needs to".

Reply by
ScreenName1957

3 Contributions
0 People Helped

My home insurance score shows high risk.  I don't understand this as we pay this with our mortgage  loan payment every month on time like clock work, and we have not used the insurance for anything in years.

It seems you're dern if you do and dern if you don't.   U am feeling a little frustrated with it all.

Reply by
Dalanah

2 Contributions
0 People Helped

I don't know if this has changed but I've gotten two credit cards in the past six onths both provided my fico score when I recieved.

Not going to argue the point we should get to see our score at anytime for free though either.  If you want to keep score from bouncing around though get it to a level you want and then freeze it (may cost a little depending on the state).  This will lock your credit there but keep in mind this will keep you from opening new lines of credit as well.

Reply by
AlexSage

1 Contribution
0 People Helped

My credit score on CreditKarma does the same thing, bouncing 70-75 points from one month to the next, even though all payments have been timely, and without inquiries. However, when my bank offered copies of my credit from the 3 major bureaus, my score remained constant, and it was a lot higher than Karma gave me. At this point, I'm not sure CK is the best gauge. It is true that you get what you pay for. CK says I have 3 credit cards when I actually have one, cites new derogatory remarks when I haven't been a minute late with a payment, and claims credit inquiries when there have been none. With scores bouncing all over the spectrum, we need to go straight to the credit bureaus for our COMPLETE reports!

Reply by
SusiePC1202

1 Contribution
0 People Helped

Couldn't agree more. The score I see  on these websites is VantageScore or some other kinds of scoring mechanism they've come up with to give you an approximate idea of your credit standing. But the actual score used is FICO and VantageScore may sometimes be far from FICO. Even if I pay Transunion/Equifax/Experian, they won't give me FICO score, so why should I pay them anyway? I haven't tried myFICO yet, not sure if they give you the real FICO score or just an approximation, but they also charge you. Why shouldn't we be presented with a report/score when they deny us credit. We should have the right to know the rationale for the rationale behind their decision.

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Reply by
gurjinder81

10 Contributions
660 People Helped

I got into a dispute with BMW Financial Services.  They are easy to get into a dispute with.  They report me late.  I was never late.  i put a consumer comment into the 3 reports.  It does no good.  My statement is not considered when computing my score, but BMW's report is.  Why does their view of the dispute impact my credit score but my view defending myself doesn't?  It seems they have more rights than I do.

Reply by
agile327

1 Contribution
0 People Helped

I totally agree. Seems when I'm paying off my debts and I've paid two in full and working on two others and I'm still in the poor credit rating. It also states I've been late with home payments and have never been late. When I changed banks last October they never picked up on it even though was done on their website and of course payment was declined at the first bank but it was still paid within grace period.  Just doesn't seem to go up when paying off debts. At least not very fast. Takes years after debts have been paid. Why if someone is checking credit does that bring it down? That doesn't seem very fair. People check it for renting and people check it when you apply for a card in a store that gives you bonus savings. Sometimes seems so unforgiving.

Reply by
pipperjo

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Helpful to 1 out of 3 people

I agree totally

Reply by
wanecke

2 Contributions
1 Person Helped
Helpful to 0 out of 1 people

Totally agree cujoslave9

Reply by
JQQ

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Helpful to 0 out of 4 people

I couldn't agree more!  You took the words right out of my mouth.

Reply by
cherelz

2 Contributions
0 People Helped
Helpful to 2354 out of 2482 people

I find the credit bureau to be about as logical and meaningful as the banks...  I am 71 with a credit history which is over 53 years old and has always been perfect.  They reduce my credit rating and say the history is only 3 years 8 months average.. how rediculous.  They can see on all of the credit report paid off loans, closed accounts, etc. that go back 19  years or more..  The value of the number is not based upon the credit worthiness of the person, but the inability of the person who wrote the program which does the evaluation to paint the true picture.  Neither  is your balance sheet nor your income considered.   Having high worth and large liquid holdings are unimportant...   I only use credit cards for accounting and record keeping purposes.. But my utilization is higher than "normal" so that is a bad thing.    Big Brother and his invasion into our personal lives continues unabated doing its damage along the way with no recourse..

Comment by
islandjerr

1 Contribution
2354 People Helped
Helpful to 1072 out of 1130 people

I agree. These people and their added scoring are a shame. I purposely use my cards like you, to avoid fraud and theft. Then I pay well over the minimum to keep my accounts in check. Still drops my score "9" points on one list and "48" on another. Completely set up to manipulate someone....

Reply by
rdatish

1 Contribution
1072 People Helped
Helpful to 594 out of 669 people

I have your exact situation.  I am 70 and have a rating of high 600's.  Who knew???

Reply by
howard3100

8 Contributions
658 People Helped
Helpful to 7 out of 7 people

truth is its a game like cards to jack rates. Its like credit increase the chance of filing insurance claims. knock on wood been driving 30 years no insurance claims no tickets. Yet they say I have a high chance of filing one because of low credit score due to filing bankrupcy after getting social security disability. But what is hurting your information giving your age is you need to see hard copy of your credit report Id say some one used your id in the past for credit fraud and you need to contest the results. Or your consolidating your credit which sends the message your not using credit enought or enought profits off what you do borrow. Got to remember credit card companys and banks are crooks lol

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Reply by
ernestf01

15 Contributions
483 People Helped
Helpful to 6 out of 6 people

The credit bureaus are paid by corporations. They could not care less about consumers. If we paid the bureaus a fee to track our credit it would be an entirely different situation. For instance, Verizon filed a bogus claim against me. I challenged them to produce the information. They could not,. Instead, they jumped to a different collection agency and I again challenged. This went on with some six different agencies. 

When I saw on my credit report that Verizon showed the debt as delinquent, I sent all of the paper work to each bureau. They responded that Verizon sent the information to them and they considered it valid. I demanded to see it so I could legitimately challenge it myself. I was refused and they sent me back to Verizon, which, of course, refused to comply.

If we paid the bureaus, I can assure you it would be a totally different situation.

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Reply by
kjeroh

22 Contributions
112 People Helped
Helpful to 4 out of 4 people

i worked for a "Credit Repair" sweatshop and everything about the credit scoring system is ridiculous. The idea that you must incur debt to build your credit.  As you mentioned, you can have a high liquid net worth and it does not matter.  I've had customers that were high net worth individuals and they had a 550 credit score.

Reply by
creolebway

1 Contribution
4 People Helped
Helpful to 2 out of 2 people

I have probably about 25 credit cards.  Student loans are from 1995 or and they were 110k.  I have had car insurance for 30 something years.  I have NEVER EVER MADE A LATE PAYMENT ON ANYTHING.  I was on workers compensation and the first 4 years, the insurance did NOT PAY ONE PENNY since they like to put you in a financial bind where your only option is to take their crappy offer and then have your claim closed.  Even while I was not getting a single penny of income, I PAID ALL THOSE 25+ credit cards and I lived off them.  I could have used the insurance option, the one that states you don't need to pay if you have an aciddent, etc.., but INSTEAD, I PAID EVERY SINGLE BILL THAT WAS DUE EVEN THOUGH MY CREDIT WAS MAXED OUT.  And I STILL DID NOT MAKE ANY LATE OR MISSING PAYMENTS.

In 30+ years, I never had an accident, I never has so much as a ticket.  I have NEVER EVER FILED FOR AN INSURANCE CLAIM on a car or a house.

After I got my regular payments started from WC, the first thing I did was to start paying up my bills.  I have about a 10-15% utilization of my total credit.  I use almost all my credit cards as I started buying items from auctions and selling them, and the ones I deal with require credit cards.  However, I pay the full charges within the grace period, so the following month the amount I owe is less since I pay what I just spent plus my monthly payment (actually I always pay 40-50 more than the payments to reduce the amount).

My Home Insurance Score is 712 and is at "VERY POOR".  My Auto Insurance Score is at 655 and is also at "VERY POOR".  Yet my Vantage Score is B and my TransUnion score is over 700.

So, HTF AM I IN THE VERY POOR CATEGORY???  I am past middle ages, I have less time to live while using credit than I have used credit, meaning I've been using credit for 30-40 years with NOT ONE LATE OR MISSED PAYMENT.  If I live to an average age, I should be dead in 20-30 years.

So someone please explain to me HTF MY SCORES ARE THAT POOR when I spent almost 40 years using credit WITH NOT ONE INSURANCE CLAIM, OR LATE PAYMENT, OR NON PAYMENT???

I have actually spoken to my attorney and we may go for a class action lawsuit if we can find enough people.  I recently started checking this stuff, so the whole thing is fresh and he'll get back to me after New Year's since he needs to talk to his other clients and see if anyone is on the same boat.  If not, I am still considering a lawsuit against these people, especially TransUnion as my Experian and Equifax scores are nowhere close to these imbeciles.  Amazing how they have the nerve to write down "this is not your driving history but BASED ON RESEARCH STUDIES, bla bla bla bla bla bla".

You can make any claim base don research studies.  There is one doctor who has crap load of data and his claim is that humans are like cars, the less you move, the less your motor gets worn out and the more you will live.  And he suggests people should move as little as possible, not move unless absolutely necessary, not exercise whatsoever or do anything that will increase their heart rate, etc...  And that is based on RESEARCH STUDIES.

The only way these bloodsuckers change anything is through inducing financial damages and a lots of them.  The more the damages they suffer, the faster they learn logic and sadly it is true with every company in this day and age.  Their purpose is not to satisfy anyone, their whole purpose is to generate money and more and more and more money by coming up with all sorts of BS.

How are these thieves support to be fair in reporting credit when they charge people for looking at scores and charge them for monitoring their credits?  Does it cost 20 dollars when you go click on a report?  Are there little people living in their servers who have to run around pulling reports and preparing them for viewing?  They have tags on every **** person who has ever used credit and that's over 200 million people in the country.  200 million and they have the face to ask people to pay 15-20 dollars a month to view their own reports for god's sake, those same reports that were obtained WITHOUT AUTHORIZATION because some ******* who could not make money at anything else decided that it would be a good idea to keep tab on people's credits and then blackmail them into giving you money if they want the mistakes removed.

Anyway, I am stopping before I get any madder since everything ends up with a rant lol.

Reply by
druid001

1 Contribution
2 People Helped
Helpful to 4 out of 5 people

Very good site Karma and very good advice being given. Please, please keep this info available to your users!

Reply by
BGG1956

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Helpful to 1 out of 1 people

Not only that, but there people/Doctors offices specifically, that render poor service or no service and expect me to pay. I challenge them but they do nothing to resolve the real issue. They send my bill to the collection agency and I can't get it off. So it stays there for 7 years(or more) and I am basically found as the guilty party. There should be better laws in place to protect us from these leeches and price gougers. They are cowards....you cannot win an argument with them cuz they won't talk to you.

Reply by
wikywak

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Helpful to 1 out of 1 people

I agree 100% with what you are saying but credit scoring is their game not ours and you have to play the game there way if you want the better score. That said, its better to have no credit history and cash in the bank than a great credit score. The better score only means you can borrow more money and get further into debt and thats it. Pay you living expenses and save your money as to pay cash for purchases and you will be far richer than if you have debt and a high score.

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Reply by
dpk1nba

10 Contributions
119 People Helped
Helpful to 1 out of 1 people

I totally agree.. the system is setup in such a way that people always have debts to pay. If you do not have any debts you have a poor score.. the system is built for the corporates to make more money by milking the people.

Reply by
goodcreditscorer

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3 People Helped
Helpful to 1 out of 1 people

Question:  If you only use credit cards for accounting and record keeping, why would you care what your credit score is?  I'm assuming you don't have derogatory remarks.  The length of credit history has a fairly low impact on your score--not nearly as much as paying on time and not maxing out any of your cards.  I am like you...even the same age.  I don't need credit, but credit does affect car and homeowner's insurance.  I don't have a mortgage on my home.  My credit score is in the high 700s and without a mortgage, it probably can't get any higher.  I only use about 3% of my available credit and have 100% on time payments and no derogatory remarks.  I can easily qualify for any credit card...but...I don't need any more than I have and honestly, never will.  Just FWIW.

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Reply by
Jasper2

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There must be a way , we can stop this. Some smart lawyer has to step up and fight for are rights. 

Reply by
eloopkcats

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I totally agree.  The rational that how I use my credit cards will influence whether I will put in a claim on my homeowners or cars insurance is bogus.  I have had financial difficulties due to disability and have had the same car insurance carrier for 30+ years.  I have had only one accident which was weather related in the past 30 years.  My car has been struck by other drivers at least 4 times in the last 10 years and somehow my insurance rating is very poor.  Your system is biased and does not factor any hardships when determining credit worthiness. The same for homeowners claims.  I have had the same homeowners insurance for 20+ years.  I believe I have had two small claims when my home was robbed and we had a hurricane and I had damage to my roof.  How does my use of credit determine how I will file claims against my insurance.  Why shoul I be penalized on my rates when I pay my bills on time and am a good driver and maintain my home.

Reply by
Maudette123

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This is all a joke, first they talk about Americans being over extended on Credit cards. What do you expect with loan sharking...thats all this is; Legalized Loan Sharking. So when you finally pay them off and decide its cash and carry now. While I'm not paying 12- 23 % Interest rates, My credit scores drop for lack of Bank or Major credit cards. Now they are rating people's Insurance premiums based on their credit score, so if you have a low score you will file more insurance claims. This is way out of control, the last time I was in an accident, it wasnt my fault and it was 10 years ago. So thats why at 58 years old with no tickets my Insurance cost are based on low my scores, because I choose no credit cards. Just  another way to hurt innocent senior citizens, who now live on fixed incomes. This is how we take care of our  Elders, Thank you for caring so much!

Reply by
ShadowCC007

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I understand your frustration, but remember that age of credit is only 10% of your credit score.  And if your average age of credit is greater than 2 years, you are not being badly dinged by that.  Most of your credit score is based on how promptly you pay your bills (100% certainly helps) and how much of your available credit you use (under 5% is certainly helpful).  A third important metric is the public record (BK filings, foreclosures, collections, judgements).  If your record is clean for 10 years, you won't be hurt at all by this.

In summary, pay ALL yor bills on time, don't max out your credit cards (any of them) and don't mess up your life with BK, foreclosures, collections, and judgments.  If you do all of these things, you will have excellent credit.  Number of credit inquiries (hard pulls) make very little impact, and if your credit history is longer than 2 years, you are going to be fine there, too.

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Jasper2

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Absolutely right it sure does NOT show the true credit worthiness of a person, not by far.....

Reply by
hawynboy

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Indeed the system is flawed. It only works for the people who control it. It won't get fixed because no one wants it fixed, as those in power would NOT GET PAID. So  I just keep stuffing my mattress with cash and let whatever else just stand. I pay what I owe in cash or money order and use the 2 credit cards i have to buy milk and cookies. CASH TALKS, CREDIT WALKS, Example: 2 guys stranded on the side of the road in the desert, one guy has cash the other has credit cards, Who do u think will get help and go farther cash or credit. Pretty simple to figure out.

Reply by
thebozzz

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I agree with you 100%.

Reply by
nemoore67

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When credit accounts are closed you lose the tenure from that account. That's why you should not close accounts after paying them off. Also they rate by the available open

lines of credit versus the credit in use.  The wider the span, the better.

Reply by
dhodakievic

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I couldn't agree more.

Reply by
Raven955

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I agree - I'm 67 and have had excellent credit for close to 40 years.  This site shows that my credit history is only 3 years long and while I have a score of 778, it is lowered due to the "short' credit history.  I am not interested in opening more credit cards, buying a car or a home, but find it very frustrating that inaccurate data has been used to lower my credit score which is accessed by my insurance carrier among others.  Fiction should be limited to books.

Reply by
pisceswatergirl

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This stuff makes no sense.. I have low utilzation rate, perfect payment history, zero delinguent info, have high income and pay all my bills on time ( mortgage, insurance, utilities etc) and my score is 717  which is considered "good".. The hell with them.. My "behavior" is  "excellent".    

Reply by
FicoFarce

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Credit history only lasts for between 7 and 10 years then it goes off the report. 

Reply by
mwd31470

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Agreed. shouldnt even be in existence.  

Reply by
1merijoe

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I'm pretty sure that because by law they aren't allowed to use negative things over 7 years old (except bankruptcies), they are not allowed to use positives over 7 years old, either.  True?

Reply by
dickadda1

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As non-intuitive as it seems, don't close accounts.  Really, I learned this the hard way.  Paying off and closing accounts changes your "available credit" and can make your credit history look much shorter than what it actually is.

Again, it may not make sense on the surface, but that's how these credit bureaus work.

Reply by
cldaustin

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You are so so right but who cares............Washington gets their share and that's all they care about.  Freedom is a word they no longer no how to define. If only Orson could see us now he would have to say 'I told you so' !

Reply by
gtmboss

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Amen!

Reply by
dodch

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Big Brother! Are you suggesting lenders should lend you or anyone else money with the to guide them? It's obvious that lower credit scores means someone pays a higher interest rate.  A big win for lenders.  What system isn't manipulated by big money, not big brother.

Reply by
Onehappycustomer

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You have hit the nail on the head !!

Reply by
111431

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could not agree more

Reply by
theou2

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I agree with you.  Being retired, financially secure and all bills paid online automatically each month, I have no debt.  My credit report shows things that have been paid off for years, but still remain.  My monthly charges are all on cards.  As you stated, it is a good way to keep track and have records of your spending, without writing checks or carrying sums of cash.  If this is an accurate reporting system it would be helpful.  But it does not seem to be.  If you have no debt, you seem to have a low score.  I guess you have to have a current history of payments rather than a lifetime of good responsible financial management.  Big brother is right sir, my hat is off to you.

Reply by
er09

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I agree and it makes no sense to base your credit history on only your current accounts that are open at the time and disregard multiple years of your closed accounts which in my situation I had 10 years of perfect payments, never late etc. but my score is based on 3 years on my current accounts, This defeats the whole purpose of the word History when it comes to credit worthiness and is *** backwards.  The reason they do this is to keep their business model pertinent, when in reality we would not need them due to the fact that it is worthless information for assesing current credit worthiness.

Reply by
persious

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Last week or so, I had a rating of >800. Now it's 760. They love creating hamsters turning that wheel at blinding speeds, with no shinning light at the end of the treadmill. 

Reply by
HaHaHamster

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It's funny - and ultimately frustrating - that so many people have a similar story here.  My Transunion score is 'Excellent', and Experian & Equifax are a few points away from 'Excellent'.  Yet my Vantage Score is 'Average'.  My car & home insurance scores are 'Poor', despite never once filing an insurance claim. 

The oldest active credit card in my possession is about 20 years old, I paid off student loans from graduate school over 10 years ago, yet my 'Age of Credit History' is 6 yrs 2 months.

I do have a high balance on my ONE active card.  But I've literally never been so much as one day late on a payment, much less missed one entirely.  This goes for any debts, utilities, rent payments, etc.  I've also competely paid-off two other cards in the past 12 months. 

It would appear that having a proven, unblemished payment history of two decades (or more for some of you) holds much less weight than the simple amount of credit card balances you carry vs. available credit. 

Reply by
mwwrla

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Keep in mind that the credit score is not just a gauge of your worthiness, but also your likeliness to actually use and maintain a credit card balance. They seperated the insurance scores from the credit scores becasue they insurnace companies don't really have the same objectives.

We currently only have a mortgage and a rapidly decreasing HELOC, having paid off and closed all other revolving credit accounts. All vehicles are paid off, and there is no unsecured debt.

The result of this is a lowering of the credit score from 765 to 754 because we have displayed the tendency NOT to use credit.

It used to be wise to keep zero-balance accounts open, but with the terrible increase in Internet fraud and identity theft that is no longer the case. It will be interesting to see how this affects the lending industry when they are faced with an increasingly large base of consumers who are credit worthy but unlikely to actually need or use credit.

Reply by
J2Carte

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I like you am 71 and have always paid all my debts for over 40 years. I have 15,000 of credit available and I use it at a higher than usual rate for record keeping purposes and have yet to miss a payment on time.I have proiperty equity of over $ 200,000 I can accessat any time.I just bought a new vehicle for $ 45,000 with no money down.Yet my credit score is in the low 600s.One of my kids doesn'y have a pot to **** in and is on disbility and never pays for his stuff on time but has a credit score over 750. Its nice to be over 71,own my home,have equity and new vehicle,credit card debts,and not really care because I no longer need to buy anything on credit. I like being in debt as its the American way,

Reply by
Grandpadebter

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It is an interesting algorithm.  If you have lots of old accounts, your score goes up (click on the links that describe each of the factors).  Lesson:  Don't pay off old loans and have a gajillion credit cards you don't use; pay off all cards every month so you don't use the credit you've been granted.

Reply by
gbussey

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BRAVO! 

Reply by
Rubigirl923

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Totally Agree.   The Gov has horrible credit  so when the country finacially falls (reality is it already has) then our personal credit scores will mean nothing.

Reply by
Tosadumo

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Thank you for your words of experience dealing with this issue, im sure it with help otheres as its helped me to view the best way to navigate my credit.

Reply by
surillick

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Good comment.Very true.

Reply by
develdog

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I am in my 50's, and experience the same issues. Additionally, I am in the mortgage profession and was completey against the inception of FICO back in the mid 90's, prediciting exactly what has come to pass: computer models anticipating future credit behavior more heavily than past performance.

I see indivdualas with deep credit histories score in the 600's simply because they use their credit and then I see people who have just started using credit, have 1 active account that score in the 700's.

Abusrd!

Reply by
HogryderHVL

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Credit Bureaus only count open accounts, (with an outstanding balance), so those who payoff their bills every month, are penalized. You may have 10 cards, but only 2 have a balance on them, so they only count those 2.  If you closed an account, it only remains on your file for 7 years, once it is closed it disappears.  If you had a payment issue (other then bankruptcy) it will be on your record for at least two years.  If you apply for a credit card, it stays on your record for two years for each occurence.  I had one issue where I rented a car, they for whatever reason, checked my credit, and it stayed for two years.  I asked about a mortgage at two companies, I never really applied for them, but they checked my credit report, and again it stayed for two years.

A bankruptcy will remain for 7-10 years.  A court ordered settlement where two people were on the account (such as divorce) will stay for 7-10 years.  Unfortunately, they hold the cards, big brother is watching, so be forwarned!  Your rates seem to only go up, if you pay ontime, rates rise, makes no sense.  With banks paying next to nothing for borrowing, they want to charge minimum of 12.99% to as high as 24.99% and more to people who pay their bills on time.  Quit loaning money to people who don't have the ability to pay, and give me a better rate.  Why should I have to pay high interest rates because the banks loan to those who can't, won't pay their bills.  Everything is done as if we are all guilty of not paying, even when history is on our side.  (Federal Government excluded in that statement.)

Good luck to all, God Bless

Reply by
arierom

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So true !!!!!  I second your motion.  So what can we do.  I also wonder why my credit score drop a whopping 20 points from August to October and I have done not a thing different except got older.

Reply by
Concernedone

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Leave the paid off accounts open unless the bank or card closes them.  That shows lower 'credit utilization' which apparently is important.  When you close the accounts your 53 year history 'vanishes' just like that!  

I know, it's illogical and a poor system, but apparently that is how it works.

Reply by
energetic1

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Well said!

I''m 71 also . My credit report information says I have credit history of just a little over six years when if fact I've had excellent credit for well over forty years!. Credit cards (2) payed in full each month, Owe only a motgage but my Credit score keeps going down.  Who are are these mindless individuals who so dominate our lives!!!!

Reply by
Strevens

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Closed accouts only stay on your credit report for 7 years. So if, for example, you faithfully paid your mortgage on time every month for 30 years, but paid off your house more than 7 years ago, it would have absolutlly no effect on your credit score.

Reply by
Perrytylor

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I agree, no one takes into consideration the income you have. I pay my bills and still have a 597 rating.

Reply by
venessam

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I totally agree with you.  In some ways it's silly how they come up with these scores.  Just like,  I was buying a house and shopping a around for the best loan I could get - that caused inquiries into my credit, and my credit score dives, so ridiculous!  Why?  Shopping around for a loan was a perfectly legitimate exercise, and wise also.

Then I see this morning that my auto insurance score is only POOR.  Why?  I have never, not even once, been late on my car insurance bill.

In fact, I have never been late on a bill in my entire life!  But what I did do was toss out all credit cards for twenty years, then inquries into my credit history came back "insufficient credit history," so I got a secured credit card from Orchard bank before they were bought out by Capital One and restored my credit.

I use Credit Karma, Credit Sesame and Credit.com to check on my credit situation as I figure with these three all three credit bureaus are covered.  Of the three Credit Karma is the hardest on me, giving me a rating of fair..  Credit Sesame says my credit is excellent.  Go figure.

You visit these sites and see that your credit went down a couple points for some reason and have no idea why - meanwhile I go right on paying all my bills on time!

I abhor debt.  P.S.  I think it stinks to high heaven the way our government is just hurling us into ever deeper debt as mach speed, making economic collapse inevitable.  Bush and Obama have been the worst presidents in American history, and I can not wait till Obama leaves office.  Our freedoms are lessening by the day due to this man.

Reply by
JohnnyShiloh

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Very accurate assessment of  bureaucratic  bs.

well stated

.

Reply by
cjin

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your age goes toward credit score , the older you are the higher the risk you wont pay off the debt because , well, of the higher odds you will die before debt is paid . 

Reply by
cjaccardi

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I just noticed my so called Auto Insurance and Home Insurance scores and how ridiculous can they be?/  I've maintained insurance for my autos and my renters insurance for years, never been late and never had to file a claim in my life, yet they rank me as "risky" and likely to file a claim?  WTF?  Just because one hardworking spouse falls terminally ill with a mechanical heart and awaits a heart transplant doesn't make people thieves.  We've paid our darned bills on time every month and maintained our insurance all along. We've never taken anything and I can't believe they would assess us as such.  Didn't even take into account I had perfect payment history on my automobile, all my utilities, my rent, my car insurance - just looked at a few credit cards we couldn't pay.  Just wow!

Reply by
CreditlessInSpokane

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I agree. It is as if they believe if your smart and use cars paid off monthly instead of being foolish enough to carry cash youe a poor risk.

I pay off every month but use about 6000 a month to cover my daily life needs and sometime wants. This make ma a very poor risk for my piad in full home when I insure it yearly. What a load of hooie.

Reply by
JPHARBIN

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The way i see this whole 'credit' thing is just like another way of taxing poor people for something they did wrong years ago. Do we really have to be paying for a small mistake for the next 7-10 years? Why so long? Isn't just one year long enough? Nope, we must be taxed based on our credit history, on our way of living, on our place of living and so on and so on..

I just find it very disturbing how we, the people of this country have to fight for our credit history and then all we get in the end, is just another 'taxing number'.

Credit score is just another way for our gov't to take money out if our pockets and what can you do about it? Prety ch th.

Reply by
bact3r1a

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Not only that but this website is pretty inaccurate, my ACTUAL transunion score is 50 points higher than what's reported here (I actually pulled my transunion score). Maybe this website is gaming your score on the lower side to sell some products. Not really sure how to use these scores.

Reply by
HunnyPuppy

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I agree, this report is not correct. I do not know where to turn  to, to get this fixed.

Reply by
donasp54

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thank you for sharing

Reply by
Empress365

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Bravo! All credit bureaus are terribly over rated and unfortunately utilized too much not taking any other financial standings onemight have. Far too much big brother in every area if our life including what size soda to drink!! What next??!!

Reply by
Kiwicottage

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Hello to my fellow "confused credit report readers" 

I stoped trying to make sense of the formula they use to give me a credit score.

I started asking what are they looking for? since then I have done much better.

Bottom line use your credit don't abuse it.

Reply by
carlos5353955

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Agree 100%.  I have a 100% repayment history, but my credit card balances are too high, so my credit has plumit about 100 points.  

Now I see that I have poor credit for auto and home owner insurances because I'm "likely to submit a claim".  I'm 48 years old and have never submit an auto or home owners claim!  

So because my credit cards right now are high and despite having a 100% on-time payment record and never submitting an insurance claim ... they identify me as a likely thief?

Reply by
mjhrpg

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amen, i agree totally

Reply by
kemper3577

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I agree entirely 

Reply by
Drushain83

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AMEN!!!

Reply by
Ladyplus7

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Thanks for sharing, I'm a bit less worried now. I agree with your last sentance whole heartedly by the way!

Reply by
zstrobeck

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So true my friend! Couple what you point out with the incompetant dopes that enter the information and surely it is a recipe for disaster.

Reply by
phk196

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I think that the way they rate you is totally unfair and is used as a way to exploit people and justify them charging higher rates to certain people.  I have only filed one small claim on my insurance due to hail damage in 36 years of driving and having insurance but yet I pay high rates due to not using a lot of credit and having a lower credit score. Basically I am penalized for paying cash.  Insurance premiums should not be based on your credit score but on your diving record and number of accidents where you were at fault.  If someone is uninsured and they cause the accident the insured person should not be penalized for using their uninsured motorist part of their policy.  I don't even want to think of how much money insurance companies have made off of me over the years. 

Reply by
Sunny0116

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Very well said!!'  

Reply by
Bsmom1

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I empathize, that is dumb as can be. 

You can still "win".  Just either spread your purchases out so that you spend less then 30% of your balance on each card or pay the balance in full each month.

If you set it to "autopay" it's a passive approach. Most high utilization penalties drop off as soon as the numper goes down (at least mine have).

PS: Also contact each card for credit limit increases. This drops your utilazation immediately.

GOOD LUCK!.

Reply by
studiogeek

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I agree. I have worked my butt off to pay down debt. I have paid off 2 loans, no insurance claims and not used my cards in over a month. This has my score falling everytime I check it. This is pure B.S. Must be a scam to keep anyone from ever getting a good rating again.

Reply by
9and20fan

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I personally feel if an agent is going to base your payment off of your credit score they should be required to report payments made on time to your credit reporting agencies. Such as insurance, rent and utilities. 

Comment by
tinkatonk

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I say if a company can run a credit check on you, then they should be required to report all payments to the credit bureau. Not just deliquent or non-payments. 

Reply by
mark2078991

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if a good history cant be used [from rent utilites ins.] then why is negitive ones used. also medical with all its billing fiascos [double dipping, over charging, ghost charging] should not be included at all

Reply by
ray81apl

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I find it ridiculous that insurance companies base how good a rate you get based upon your credit history.  To me, that is discrimination.  I've always had not a perfect credit history, but have never caused any accidents and have had one ticket in the past 10 years.  I am a safe driver, etc.  However, I would (when I was single) have an increase on my auto insurance because I was not deemed "creditworthy".  What about those drivers who have excellent credit but are horrible drivers?  No one should base what a person is based on their credit score.  Many of us have bad luck in regards to having medical problems, unemployment, etc.  That doesn't make us untouchables.  I hope that the auto industry will look at someone's driving history, as the only means for rates, rather than credit history.

Reply by
sumame

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totally agree, quick to add those late payments etc, but never the on time payments. I closed out accts myself so i wouldn;t go in debt bad and that goes against you too!  I have many paid closed accts but i don't seem to get credit for them.

Reply by
bichard

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Insurance, rent and utility payments are not a good representation of one's credit worthiness.  Why?  These are always the first bills to be paid.  When you start going south on these, you are already a very bad credit risk.  You can't get too far in arrears because your landlord will evict you, your utilities will be turned off, and you will lose your insurance coverage.  That puts you, in a manner of speaking, in very bad company.

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Reply by
Jasper2

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very good information

Reply by
rafiquesaddique

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@Jasper2 Actually, your reason you give for why rent, utilities, insurance can't be used  for credit rating purposes is exactly why they should be used.  " These are always the first bills to be paid. " For someone who has their priorities straight, they are the first bills paid. A good number of people realize they can juggle rent and utilities because there's leeway before an eviction process can begin or utilities can be shut off -- and they're not considered in a credit history. I've known people who lived perpetually one or two months behind -- making sure the credit cards were paid.

Rent, utilities, insurance etc should be a key baseline in considering credit for the simple reason that they are essential. I have heard there's a fourth, consumer-based credit rating agency that uses these payments as a base. While credit card companies won't consider it (they don't pay for it) mortgage companies will consider its tatings. PBRC.com

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Reply by
kjeroh

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totally agree

Reply by
lwnorcal

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I completely agree with your idea. Some companies are awful quick to throw a "Past Due" status on your credit report, particularly medical bills for very measly amounts. I think it's ludicrous to have a $20-$50 bill sit on your report for up to 7 years! If an individual's finances are in that dire of straits-- when they have to choose between making rent or paying an old medical bill, what good is a magical number (credit score) if you've been evicted from your home?

And if I have to choose, I will always pay my basic housing expenses before any credit cards, loans, etc. Life happens, and who would choose to not pay a bill if they had the money and knew it would negatively impact their credit for years to come?

Reply by
mlou820

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I agree I paid one bill completely off on time and my score went down wtf is that

Reply by
MemePauline

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I agree totally. I have several accounts that take credit score into account and then do not report to the credit agencies therefore that particular account does not affect credit scores (good or bad) unless the account is closed.

Reply by
alanalyons

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Agreed !!

Reply by
JayanaS

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These all can be obtained easily, and are, by anyone who is considering extending credit to an individual. Plus, they can assume that if there are say, only one or two delinquent reports, that all the rest must have been on time.

Reply by
meethed

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I agree, but how do we get them to comply with reporting the positive?

Reply by
koko62

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Insurance premiums are paid in advance.  Usually, rent is first and last months of a lease paid in advance along with the damage deposit. It isn't credit.  Just like rent.  It's paid in advance.  If you don't pay your rent you are evicted.  If you don't pay your insurance, you are cancelled. Neither of these has any relevance to credit.  It isn't debt that is being repaid.  It is a prepaid service.  More like a prepaid debit card. 

Utilities are not rent as well.  You pay your phone bill and cable in advance.  If your credit is bad, you must pay your electric and gas bills in advance.  If you don't pay your utilities on time, they disconnect you and to reconnect they demand an advance deposit.

If you cannot pay your rent, insurance, and utilities on time, credit wise, you are in very bad company.  Would you lend money to someone who is routinely behind on these services?  

Credit grantors want to see how you pay when you are not going to get put out on the street for non-payment.

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Reply by
Jasper2

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I agree! The consumer does not have a real advocate to level the playing field. Corporate America makes these rules and we just fall into place. We have the power if we unite and make demand that are consurmer friendly.

Reply by
instep6363

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I agree completely!

Reply by
FLcricket

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i agree with that

Reply by
kenneth301981

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EXCELLENT POINT.. If an insurance company is going to use a credit score to determine your rate, it should be reported when you pay your premiums.

Reply by
Norman0874

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Those agents aren't actually extending credit to you, so it makes sense not to count it. If you don't pay those bills they will stop providing the service, and send you to collections. They need to look at how you pay the people who ARE extending credit to you as a means of understanding how they will get paid.

Reply by
EEscobarMiami

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Utilities report if you're late, therefore, nothing reporting means you're on time.

Reply by
kellsita

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Oh i agree with you, trust me if rent was paid late they would report the credit as bad, so why not good credit to bereported.

Reply by
luge65

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I agree! This system is much too complicated. We ran into a little trouble some time ago and since have made hefty payments to counter negative reports, however our credit agencies have never acknowledged this in our redit report. Our score never changes nor do the amounts owed which are erroneous. How does one change those figures on the credit reports?

Reply by
grammysandy

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AMEN!

Reply by
erikad99

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Good point

Reply by
Tehlers1

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IF....

 I have scores of 

  • Credit utilization (A)
  • Payment history (A)
  • Age of Credit (C)
  • Total Accounts (A)
  • Credit Inquiries (C)
  • Derogatory (B)

Then how come my Overall score is (D) ?

Comment by
dantheman22

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I'm no expert, nor would I even consider myself at an above average level of knowledge in reference to credit, but I'd guess it pertains to the B in Derogatory due to the heavy weight of the category. Credit utilization, payment history, and derogatory marks are generally the categories that affect your score the most, and the reason I'd believe it's the derogatory marks causing the low overall score is this...

Based on my personal grades:

  • Credit Utilization (D) (Yeah, oops... temporary! Ha.)
  • Payment History (A)
  • Age of Credit (F) (I'm young.)
  • Total Accounts (F)
  • Credit Inquiries (B)
  • Derogatory (A)

Based on that, you would think I'd have a lower overall grade, right? Wrong. I have a C. Doesn't make a whole lot of sense in reality, but my guess would be that it's related to whatever that derogatory mark is--those have a strong and long-lasting effect on credit scores.

Reply by
melophobic

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The funniest thing is having both "Total Accounts" and "Credit Inquiries" in the formula to calculate credit worthiness.

According to CreditKarma, credit bureus consider the following:

Total Accounts should be >= 21. The more the better

Number of inquiries should be close to 0. The lesser the better

Did they forget to acknowledge that it takes inquiries to open accounts?? How is it possible to have 21+ credit accounts with close to 0 credit inquiries?Of course this formula is a fraud, just so they can tell you that your score is less than blah blah and that's why they're charging you more.

Also, age of credit is an average of only Open Accounts's age. So, even if you'd been making payments on time for a loan/credit card; once you've gotten rid of that loan, all that hard work is lost forever and your score goes down.

BTW, this might help you understand your credit score a little bit better. it detals the weightage for each of the components of your score.

FICO Score
•    35% payment history

•    30% level of debt

•    15% age of credit history

•    10% types of credit

•    10% credit inquiries

VantageScore

•    32% payment history

•    23% utilization

•    15% balances

•    13% depth of credit

•    10% recent credit

•    7% available credit

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Reply by
gurjinder81

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Because derogatory marks can have an extremely high-weighted affect on your score. That's my best guess. You just have to wait til they're gone from your record (7-15 years, depending on what they are).

And in response to the person asking how you can have 21+ open accounts and 0 credit inquiries, credit inquiries disappear from your credit history after 2 years. So they basically want 21+ accounts that have all been open for at least 2 years, preferably longer.

Reply by
Striker37

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It's beyond incredible. If Trans Union did your 'scoring' it is not surprising. Some years ago they had me owning two houses and 3 differant bank accounts in Rhode Island and the only thing I had in Rhode Island were my Aunt, Uncle & cousins, and I lived in Boston at the time, and had everything local in Boston! 

After I called Trans Union on a Friday morning, and told them they used by SSN with some guy in Rhode Island with the same last name, and I did not have any home loans, nor bank accounts in Rhode Island, the Trans Union creep on the phone said 'Well, it makes your credit score look good."  I responded, "Correct the credit report you have on me!", The Trans Union arrogant schmuck refused, and stated there was "Nothing I could do about it."    My response was, "Fix it by Monday,  or not only will my lawyer be calling you on Monday, but he and I do a 3 to 6 hour live radio call in talk show, and will will be very happy to represent your abused victims and give out his, and your toll free number for a class action law suit."  

Monday afternoon, Trans Union, after speaking to my lawyer, agreed to correct everything in the invented credit report they had on me, plus settle out of court! A 'compensation check was sent overnight Fedex. My lawyer added if upon re-checking my credit report on file with Trans Union, and they re-listed the false Rhode Island bank accounts and houses (or added addtional false information) linked with my name & SSN,  ---  there would not be any phones calls to them, but a live call in talk show and a swift very public law suit.   That solved the problems with them, then. Now I am re-checking to be sure  things are kosher.

Do not allow Trans Union or the two others,  play their typical potential damaging credit games. Fight back!

Reply by
Hudson1949

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Doesn't make sense, does it.  Maybe they are just not very good at math.

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Reply by
cygnusx3

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Inquiries drop off your credit after 2 years. So you want to be closer to 0 inquiries within the past 2 years. It show's you're not desperately trying to get money to cover your expenses.

Greater number of accounts shows you are offered and moved forward with companys who are willing to extend credit to you.

Reply by
KTGiang

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This is hilarious. Thank you! I needed a laugh. Back to insurance...I have a D rating, yet, I've always made my payments on time - never been late. I'd hate to think of what "grade" I'd get for non-payment. What a joke. 

Reply by
brandoff

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It would be helpful to know what the derogatory (B) is based on.  Total accounts don't matter at all.  C credit inquiries might have some impact--how many hard pulls in the past year?  C age of credit shouldn't matter much if you have a credit history longer than 2 years.

These A, B, C, D "scores" are not scores at all.  Credit grantors don't even look at them.  Your numerical FICO scores  (you can only get those from "my FICO") are what creditors look at.  The scores you get directly from the three credit rating companies likewise do not matter.  They are not seen by anyone but you.

Again, your letter score ratings from Credit Karma are only for your own use, as you are the only one who will ever see them.

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Reply by
Jasper2

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Your "overall" isn't that simple, I am an accountant with a degree in financial advising as well, each category is weighted and is influences your overall grade by how heavily it's weighted, although I do agree your overall shouldn't be a D that doesn't make any sense. 

Reply by
cmc1103

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becuase you have a derogatory mark. HUGE impact

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Reply by
brandnew554

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People lets not forget that when companies check your credit it also brings it down. Any credit card offers, loans/credit cards you apply for and so on. You must make a request to each credit reporting company and any companys you have credit with not to share your info. with other companys. 

Reply by
jlabrie29

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Something is very wrong there (? ) We live under the babylonian system fromm the bibical time and it to keep the rich thieves breeding off humanity we have to pray for divine wisdom in conquering satan agents.

Reply by
Jesus723

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I also have similor scores, 5 A's & 2 B's

How is the avaerage a "C"

That wasn't how I was taught to average numbers or letters.

Go figure!!!!!!!!!!!!!

Reply by
Etmill10

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Just to throw my $.02, just keep in find that credit reporting agencies are in business to serve their clients meaning the institutions that serve them (such as banks, credit unions, insurance companies, etc.) that pay for their subscription services. To us, we're just files to them and they don't have any financial incentive to help us since we're not providing them income ... aside from the FCRA they just don't see the need to help us. Not attempting to be an apologist for them, but you have to go into credit knowing this. Nothing wrong with a cash-only lifestyle!

Reply by
Takotsubo

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Derogatory marks weigh very heavily in your score. It's a B relative to what some people with very poor credit could have (e.g. 5-6 marks). You should flush out where those bad marks are coming from and resolve any that are in error. For the others, it's just waiting for time to pass so they eventually drop off your 2-year, 5-year, etc. history.

Reply by
srkoonce

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It's based on your credit score, not an accumulation of the combined grades Credit Karma is giving. Highlight your grade and it will explain. :)

Reply by
dringram10

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I would too like to know this!  I went from 729 to a 687 in a week.  Nothing changed but improvements to my Credit Utilization.  Can anyone explain.

Reply by
runnerrunne

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consumers' creditworthiness on an easy A to F letter scale:

•A: 901-990
•B: 801-900
•C: 701-800
•D: 601-700
•F: 501-600

Reply by
shanerr

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Because the entire system set up by overly paid bureaucrats is bogus and sucks tehbig green one.

Reply by
Socrates45

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Mine is a C and I've never had a delinquent.  My only negative mark is Age & Inquiries.  Those aren't major contributors.  Deliquency is...

Reply by
jAMEXman

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I still don't get it.. I haven't done anything. I had 'excellent' FICO score and then all of a sudden, it's 'good'.  I don't understand the fluctuations.

I don't close accounts that are unused because they say that's bad.

I started using credit cards because they said that's good. I previously had no debt and used my ATM card.  I now have an AMEX, a few Chase, a Discover, a Home Depot, and a Sears card that I use. I pay the balance due on all but the Sears and Home Depot that are 0% interest for a period, and those will be paid off at the end of that term.  Should I just pay those two off now? Will it make a difference? And will that difference be good, or bad??

I own 2 cars and the insurance company takes their money out of my bank every month without fail.  I have no car payment.

I have a mortgage that gets paid automatically, never late.

I'm afraid to allow anyone to inquire, as for some effing reason, that makes the score go down.  WHY????

This system is so screwed up....as I get older (I'm almost 64), I wonder how to handle the rest of my life! 

I thought that earning a decent wage and buying with cash was the right thing to do.  It's not.

Reply by
PPJW

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I have:

  • Credit utilization (A)
  • Payment history (A)
  • Age of Credit (F)
  • Total Accounts (C)
  • Credit Inquiries (A)
  • Derogatory (A)

My overall score is B.

This is because age is a medium factor and total accounts is a low factor.

History, utilization, and derogatory marks are all high factors, so I agree with melophobic that it's the derogatory mark that screwing you. I'm sorry, and good luck.

Also for the user that replied last, the credit inquiries that are being utilized are hard inquiries, not soft ones. For instance, applying for a credit card with a medium to low balance is a soft inquiry, so it doesn't count against your credit score like applying for a house mortgage or car loan would. I know this to be true, because I applied for a credit card with a $4,500 limit recently and my credit inquiries are still at 0.

Wishing everyone the best!

Reply by
cbrown319

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Because Credit Karma is full of it!!  They lopped off a bit over 100 points from my FICO score!!!! Dont believe the hype. And they have my credit history as 1.8 years when it is actually 15 years and one of my loans is even on here as proof of that.  How stupid and just a pure waste of everyones time.  If you notice....there is an ad for "Lexington Law" on these pages.  What does that tell you? And to the people that say why dont they report "on time" payments....just assume that where there is no "late payment" for a particular month, means you paid on time so they are actually on there too. Late payments are usually listed as 30, 60,90, 120 days late or NP for "no payment" for every month and C/O for charged off. This is not a real credit report we're looking at here.  Hope this helps folks and good luck!

Reply by
DZNursie46

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Exactly...I have 2 A's 2 B's a C and a D but my overall is a D....WTF...in college that would be pretty decent!!

Reply by
gollum40

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I agree! I

Reply by
Angelb69

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I'm convinced that it's because "they can" so they will.

Reply by
PPJW

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i wonder the exact same thing!!!

Reply by
thomasg39

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Mine like that too I have a long history of on time payments and they say it a c I only use one credit secured card for 4 years now but it says age of credit is one year and 4 months they really screwed up!!, makes me mad when they mess up !

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Reply by
dizzi2cu

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Perhaps they "whoever the power that be"  needs a class in math or at least give us an explanation.

Reply by
Concernedone

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Because of 2 C's and the D. You need to stop applying for credit and just pay on what you do have and pay off your derogatory accounts. Get in touch with the credit bureau in your town and set up a payment plan to pay them off. It can be a small payment every month, just don't miss one. If you pay off your derogatory accounts in full , your credit will go down some but within 45 days it will sky rocket.

pgozzy

Reply by
starvinpaul

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Because they're stupid

Reply by
justmehere6969

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The Derogatory (B) is probably hurting it the most

Reply by
UKTone

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My score has shrunk little by little over the past year for no reason whatsoever.  792   to   787   to 782 to 777....for no reason.  Not one single thing has changed in my life or how my bills are paid.......

Thank God I bank with a creit union who kbnows me and my history.............

Comment by
swilson3828

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Is it possible that you have one credit card you pay off monthly, but the amount showing you owe, changes?  I have a credit card that everything goes onto for milage.  Some months it shows more than $3,000 in debt, while other months, it will show $700.  It's paid off monthly regardless. But, on the months when I owe more than $3,000, Im thinking that affects my credit score for that month....and the opposite (score rises for the month) for when it shows $700 or less

Reply by
mekaren

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If nothing has changed the only thing that has is your age after 45 it goes down because jut because they believe your work cycle is coming to an end and don't want you to leave a lot of debt they can not collect from a retiree

Reply by
boysmum3g

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Ha! Do they really think people are close to retirement at age 45? Most folks are working long into their 60's now and sometimes 70's. Especially in our current economic climate.

Reply by
DebbieKat

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I work for a credit union! That is definitely the way to go. We do not have minimum credit scores for any of our loans and we make lending decisions by taking the entire picture into consideration (i.e. debt to income ratio, excuses for any blemishes, etc.) I am amazed at the number of applicants that come across my desk and have higher scores than me but terrible history. I always make payments on time and have a mortgage, auto loan, student loans and only 2 revolving credit lines. They all have perfect history yet my score is in the low 600's. but I will often see an applicant with a recent bankruptcy yet they have scores in the 700's. How does that make sense?

Reply by
jpendley1104

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Could be your balance on your statement date is different I've been keeping track of my statement date and paying my credit card down to 10-20% of limit every month and has been steadily going up. I just pay off every month then make sure has a low balance on date the statement comes out.

Reply by
jbfritz

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There is no meaningful difference between a credit score of 792 and 777.  These are technical adjustments.  You won't be denied credit from anyone because of such a difference, nor will you pay a significant difference (if any difference at all) in what you pay for credit.  Stop worrying over nothing.

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Reply by
Jasper2

165 Contributions
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similar thing happening to me. I used to have a very high insurance rating. all of a sudden over the last half year my rating has drastically nose dived. Now im rated as very bad. I have never filed a claim before and my credit has been fairly steady.

Reply by
niceguy4704

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I find this just amazing. I refinanced my Home, and my "score", dropped 19 points!!!

    What a load of B.S.

What's next, when the Dollar is useless??What will my score be then?? lol

Reply by
Mac52

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I also bank at the credit union many people do not realize they are a non-profit bank and also work with the community they have better loans , lower amount to open accounts and perks you do not get from the traditional banks which makes there money from you, Then these companies offer you all these credit cards then tell you if you use more than 30% your high risk so you can have 25,000 but should use only 5,000 if you make great on time payments what sense do that make none....

Reply by
bestus

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None of the credit crap makes any real logical sense including the crap here at Kredit Bad Karma who, if you haven't already figured it out, are just as big a scammer and just another example of what is horribly wrong with much of the financial services industry.

Reply by
ttack

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I  Agree I my self biong to a credit Union so much better than a bank /banks rip poeple off and as far as my credit score goes my score on Credit Karma"s is 667 and my score with my creit Union is 722 why such a big difference I ask my rep at my credit Union and they told me that there score is completely accurate and updated dayly.anyone that belongs to a bank STOP and join a credit union I have been with a few and found that Community America is the best do your self a big favor and check them out you will be glad you did I promise.

Reply by
dodgeramhemi12

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Thought so also, then paid off an auto loan and tried to get a new one.  Just today this happened.  The credit union only looks at one of the reporting agencies-Experian, which just happened to be 51 points lower than TransUnion and 12 points lower than Experian.  I went through one of the dealership's banks and got the 2.39% @ 75 mo.  They looked at the highest Credit rating and it was a bank.  Mad at the Credit Union I've banked with for 30 years.  They are playing a numbers game at my Credit Union the last year and to my disadvantage.  Esp. in terms of interest rates and rewards on credit cards.  I let them know today that I know they are doing this and I'm not a happy member and was taking my business elsewhere.  They know my payment history and I have never had a derogatory mark or late payment on my history in 30+ years.  

Reply by
Dream2long

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Yes, but credit unions like USAA who should look out for there members have not reported on time not once. And rate me as a class c consumer with A ratings across the board except age being a C. With a 798 rate I got approved for a auto loan for 13 percent intrest. That's BS none of this really matters that much I guess. Yes I am 31 with hardly any debt. Careful with those credit unions. The bank will make there money and screw the consumer if possible.

Reply by
Geishaandgatorsdad

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I agree By my credit score you would think getting credit could be a little problem  I also bank at credit union and I have no problem walking in asking for a loan and within an hour I have my money

Reply by
onepotatotwopotato

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Stay away from the BIG BANKS. You and your character are not taken into concideration. You are just a number on a spread sheet. It has been my experiance that my Credit Union has gotten to know me as a person. And thus treats me as such. I try to keep all my financial decisions local. 

Reply by
VanK1956

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@mekaren I work at a credit union and yesterday I talked with a loan officer to try and learn more about credit. She pulled someone's credit that she had been working with in the past week and showed me that different lenders will report at different times during the month. They dont just report the day after the payment. It's completely random when they report. Sometimes they report at the beginning of the month and sometimes the end or the middle. She told me that if I need to apply for a loan to just pay all my credit down and keep down throughout the entire month for 2-3 months before applying. I'm in the same boat, I want my rewards but dont want to have negative marks on my credit. 

Reply by
mphilly03

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@mekaren I work at a credit union and I talked to a loan officer yesterday. She pulled someone's credit to teach me about what they look at and what not and it showed that different lenders report at different times. The crappy thing is that it's random when they report. So when it comes time to take out a loan, just make sure you've paid your cards down 2 to 3 months in advance, and keep them down the whole month. I'm in the same boat. I want to earn my rewards but I have that fear of when they will report my usage.. 

Reply by
mphilly03

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Praise God, I bank with a credit union as well!!!

Blessings All

'Psalms 6'

Reply by
msslt33

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I listent to a good financial advisor on a radio program (Dan Celia, financialissues.org) who says that keeping a great score when dealing with credit cards also involves not  paying them off completely except once every 6 months. Keep below 20% debt  utilization on them and make payments for 6 months then pay it off. Keep that cycle going. Also, some companies will close the account because they want to make money on interest. Paying them off each month seems to hurt in more ways than one. I know that several finance classes I took advised to utilize credit cards for monthly cash flow, but keep a minimal balance, let them charge you minimal interest and that might keep things going in the right direction.

Reply by
mondeltim1993

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THANK GOD FOR A CREDIT UNION!!!!

Reply by
lalapapa2

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I dont want to get personal, however, my husband is a Jr. (we are in NY dad is almost 80 and in FL) out f the blue my husbands score dropped 50 points. Yes 50! We ran a credit report, his dad was all over the report, multiple dad accounts on Jrs account.  Dad has perfect credit but hit 80. Is this age discrimination? Once its sorted out, i will know for sure.

Reply by
mlfioriglio5

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I tried to buy a car today thinking my Credit Karma score was accurate,but I looked like an idiot when they ran my score.  It came back 82 points lower on equafax and 22 points lower on transunion. whats the deal? Had a 72 month 0 down deal ready to go all I needed  was a 680 I guess Credit Karma isn't as accurate as I thought

Comment by
223bigdaddy

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Yes, it isn't accurate, When i went to buy the car, i caheck the score on credit karma and it showed me 722, when the dealer ran the credit report it showed 744, in my case i was happy that i got a good deal based on that score, but Credit karma doesn't show perfect score.

Reply by
Nj007

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Helpful to 93 out of 104 people

some advice bring up a 3 agency credit report dispute all wrong info. And credit karma has sponsors cant trust their info its bias

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Reply by
ernestf01

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Helpful to 4 out of 4 people

credit karma is not accurate. when i first signed up, i had was shown a credit score. i have since paid off my car, way before it was due, paid off a loan, and a few credit cards. paid in full. my credit score is still the same. if i were to buy a car or something else, i would not rely on this site. i would get a copy of my credit report and pay fo my fico score.  this site is not dependable at all!

Reply by
cdf19699

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Fico Is the the score that matters... there are different scores for buying different things...ie house, car, loan, credit cards.go to fico web site to get real score, oh and its not free at all...

Reply by
getoutofdebtperson

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Seventy two months, you are lucky they rejected you

Reply by
yogiyoyo

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Karma only reports score set by TransUnion

Reply by
Wenray13

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credit karma is not accurate. i found that out myself. i have had the same credit score, since i first signed up.  i have paid off a loan and a few credit cards. i even paid my car off before it was due. what in the world is going on? this sight is so ridiculous. i would not rely on this sight as far as buying a car or anything else. i would get a credit report and pay to get my fico score! that would probably be the best thing to do. 

Reply by
cdf19699

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Helpful to 1 out of 2 people

Same happened to me...my score on KC is 710, when the salesman ran it (thru Transunion) it was 567...felt like a liar, he even asked where I got my score, felt ashamed to say is was from KC.

Reply by
adecelis

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1 Person Helped

you car loan has a different scoring system! which is weird... when i went to get a car they said they have a totally different system on cars...

Reply by
doode34

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u r write i check with credit karma and they said my score from transunion was 582 but transunion said my score is 543 i thank credit karmr is a joke im going 2 stop useing them

Reply by
comcast123

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Equifax will always show a lower score and, unfortunately, it's what most companies use since it's considered more "in-depth" than the other two bureaus. This website will give you a decent guideline as to where your credit score is going, but you won't ever truly know your credit scores from Equifax without getting it from them.

Reply by
Jimmidoe

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Agree that Credit Karma score is not the same as when one pulls scores directly from the big 3 reporting companies.  I recently refinanced my mortgage and was pleasantly surprised that my actual scores (from all 3) were higher than what Credit Karma shows. 

Reply by
bluedog2384

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I guess you should've paid your bills on time. You should have a 680 in your sleep as long as you pay your bills on time. Also, a 72 month, 0 down car loan is one of the riskiest car loans a bank can write - it's the longest term available with no security up-front. It leaves a bank in a really tough position. If you were rolling negative equity into the new vehicle the bank takes on an even greater risk. Try putting a thousand or two down to appease a bank, or ask the business/finance manager to bake it in to the loan application. Any finance manager worth his paycheck should be able to get that through - on the application, they'd say the car was $2,000 more than it actually was, and that you were putting $2,000 down on it - then when they write the actual deal, they roll the price back to the negotiated price, and the $2,000 disappears, but the loan goes through. 

Reply by
gentry410

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It does not take a rocket scientist to figure out that these credit ranking folks are in bed with the folks that determine your credit ranking. Why else would paying down your credit card to $ 0 balance owed and closing your account would  give you a negative rating! Rating agencies can tell if  a  company is going down the drain or  is "A" rated. Moody's and Transunion, etc are all scams that make money for the powers that be. As Moody's said after being busted, these ratings are there "opinion"!!!

Comment by
wrobin13

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If your credit affects your car insurance why is it that mine is "fair" for car insurance but "excellent" for house insurance?  How come car insurance companies give you one price right off the bat and then when they check your credit they raise the price and of course won't tell you why!  They lie when they say it's not based on accidents.  Even if it's not your fault you are going to pay more!  Even if you have 1 accident your fault several years ago, you are going to pay more.   1 late payment on your credit and when you go to switch your insurance, you will pay more!  There is no logic to this system.  The bottom line is this system just allows companies to charge you more and is meant to be kept a mystery from us.  Ever notice car insurance companies don't talk about that?  When asked they say they dont know why & blame it on the underwriters!  There is no incentive to change this stupid credit rating process when companies are making a ton of money off of us.

Reply by
1bailey1

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Credit card companies do make money when people carry a balance, pay balance transfer fees, etc., but they also make money by charging merchant transaction processing fees that run (very roughly) between 1.5 and 5 percent (some more I guess - depends on the processor).  Sometimes merchants will give discounts for cash purchases as a result (some add a convenience fee for using a credit card).  Hence, when one uses a card the credit card company makes money, even if one pays off the balance in full every month.  Indeed, I am aware of individuals who pay off their balances and also get the various cash-back rewards (of 1-1.5%) from their card provider.

Reply by
SkepticalInOhio

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In total & complete agreement!!!!

Reply by
feeliscrewed

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I have never paid a dime of interst on my credit cards. The balance is paid in full every month and I have an Excellent credit score rating and have this rating for years.

Reply by
cedarroad

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I found 4 free credit scores online.

1) C/K- 720. 2) Credit Sesame- 692 3) Mint - 750. 4) Credit score.com-810.

What does that tell me?  These are all guesstimates? FICO is the only one that counts.

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Comment by
sav825

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I did that one time and canceled my account with free credit score.com and they didnt cancel the account and charged me anyway. If anyone decides to do that make sure you get a confirmation code.

Reply by
aboutwell5139

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You can also get a free trial on freescore.com to see your Transunion, Experian, Equifax, and home and auto scores.  Just don't forget to cancel within the timeframe given (7 days if I remember correctly).  Peer-to-peer lending sites like Prosper.com and LendingClub.com can also show you your score if you apply for a loan.  I believe Prosper.com uses the Experian Scorex Plus score.  Many people think that only the FICO matters.  That's only true if the lender you apply with uses the original FICO score.  But many companies use one or more of various scores that may better meet their needs to match price to risk.  So knowing how you score among various scoring methods can be beneficial to help you play their game to improve your score.  The 4 sites mentioned above are great, because they give you specific insight about your particular credit situation to help you improve your score (leaving the oldest accounts open, increasing credit limits to lower utilization %, having a good mix of types of credit, etc.).  Knowlege is power. 

Reply by
mikesabbey

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www.myFICO.com/FICO-Score

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Reply by
dpk1nba

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Amazing isn't it. There should be one scoring model, with one fair set of weights. but then everyone would understand just where they stand, when applying or improving credit. Tis system is designed for just one thing, to maximise profits for the reporting agencies. The average joe is just a small part of the credit reporting agencies profits. The real money is from institutions that pull your credit, debt collectors, and skip tracers. and lets face it, an person rated c or d is loved by lenders. Even thought the report shows they pay their bills when due, they are justified in charging more point for the loan. I have long perfect
payment history. But my score rarely goes above a low 700 TU score. My utilization get a bit high occasionally, but a derog. that will never go away (over 40 grand IRS lien). Yet I never have a problem getting financing when needed, it just cost me more. You would be surprised how many people have IRS liens, scores count them, lenders see them so often it is not considered a big deal on their inhouse scoring. And, many many lenders have their own inhouse models to tweek the "official" scores. A lien is not a make or break deal on a loan, but the score determines the interest rate. That has been my experience.

Reply by
Oakietex

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I ckecked "mint" with the better buisness bureau, "Not Found" while CK was an A & Credit Sesame was an A-. I am very leary about who I give my info to, fell for a scam in 2010 to reduce my monthly credit card pmts up to 50%. They were always paid on time before that. Thought I did my homework, they were even a "law firm", the end result was having to file bankrupsy...they crushed me, so please be careful.

Reply by
tmcat121

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I have to agree my bank does the FICO score everymonth for me and  It shows my score is much higher than this score t hrough credit Karma. And Home Insurance for me is POOR well I wonder what home I own that makes my score so low? I hope they can share reality some day soon. Otherwise This is very unreliable

Reply by
NoSensehere

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I might point out that the score you get directly from Transunion, Experian and Equafax are phoney.  They sell them to you to make a profit since they are in business to make money.  The scores are usually close to the real thing but sometimes can be off by good amount.  To get correct scores go to Myficoscores.com.  Only place to get your real scores but it costs about $15 per score.

Reply by
natureman55

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The only one that counts is whatever bureau your lender decides to run when considering your credit application. Some lenders run TransUnion, some run EquiFax, some run Experian. It depends on the lender and who they contract with. Your best bet is not complaining about how rigged the system is, but learning which bureaus your lenders report to, how each bureau scores and specifically what you can do to impact your score. Then, when it's time to apply, ask your lender which bureau they pull your credit report from BEFORE you authorize it. 

Reply by
gentry410

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Does anyone help you for free fixing credit?

Reply by
teachermam

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The free scores are good for monitoring your credit situation though, since they are at least based on one of your raw credit reports.  Here are the free credit score sites I use in case anyone is curious to check them out:  1.  creditkarma.com  2.  creditsesame.com  3.  credit.com  4.  quizzle.com

Reply by
mikesabbey

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Update, latest C/K score 718. Mortgage Company pulled FICO & it was 713.Suprized that they were so close.

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Reply by
sav825

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You are absolutely correct! I am about to erase Credit K from my BookMarks!

Reply by
theoldstoryteller

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I don't understand the Auto Insurance Score. Sure there might be a correlation between credit and the chance that someone would file a claim... Except my Auto Sore is only "Fair" and yet I have excellent credit, 100% on time payments, 3% credit card utilization, 15% debt to income (mainly my vehicle), I've been driving for 12 years with no accidents, no claims and only 1 minor ticket 10 years ago. Seems like I should have an excellent auto insurance score, unless the Lien on my vehicle is somehow bringing it down?

Regardless, I'm glad Progressive let me show off my driving record and get a lower insurance payment with Snapshot.

Comment by
nptaszek86

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Same here.  It is a real puzzle.  And I own all of my vehicles.

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Reply by
cygnusx3

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I don't understand this either. My auto insurance score is great and, as much as i hate to admit it, I have not had insurance on my truck for over a year now.

Reply by
MistaBreeze

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Funny thing is my score for auto insurance is great. I've got several piad off auto loans on my account. However, I've had accidents, claims, and several traffic tickets. You'd think mine would be "Fair" at best. On the flip side, my home insurance score is low and I've never made a claim there. Sometimes my mortage doesn't even get counted properly for some reason when they are doing my score with other places.

The auto and home scores should have more detail posted so we know what goes in to them.

Reply by
Keaz

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My scores have all gone up substantially in the past few months, and yet my Auto Insurance Score has decreased substantially, even though it is supposedly based on the score that has increased the most! There is no logic involved here...I'll continue to move along as always.

Reply by
ChooksChick

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Are you sure your name isn't Flo? That sounds like a Progressive employee to me. I stopped using Snapshot after about 2 weeks when it started sending me emails telling me how to drive. 12 years driving, no accidents, a couple tickets 10 years ago, nothing crazy. I did notice that my insurance score fluctuates with the seasons - perhaps it's something to do with weather in New England? It also dropped 30 points during the month when I filed a glass claim to have my cracked windshield replaced. Seems legit to me. 

Reply by
gentry410

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same case here. there is no relation between credit score and accidents that can happen.. who in right mind came up with the idea that people with poor credit will go and bang up their car as though they dont have any other problems.. 

Reply by
goodcreditscorer

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Ive been driving for 5 years and never had payments (i always buy used vehicles with cash) and ive never put in a claim. Since your driving record is not calculated and i havent had any claims i SHOULD have a high score, but mine is an 818, which is poor. It makes no sense.

Reply by
nateoberski

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I have a similar issue. My score has been going up almost every month for the past year but somehow my auto insurance score keeps going down. How is that even possible?

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Reply by
dpk1nba

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truth is its not based on credit as a chance of a claim. my history perfect yet mines high. Its base on sex and how long youve had coverage. Ive been driving allmost 30 years no tickets or accidents yet mine very high. Know a woman 3 accidents in 3 years and her rates and her daughter rates cheaper than mine. her credit stinks worse than mine. but ive allway been on business or joint policys she had same providers longer. has nothing to do with credit. sexual descrimination and how long your insured threw same provider

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Reply by
ernestf01

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483 People Helped

All that does not make any sense why your Insurance Score is Low...I just a glimmick for us to pay higher prices and higher interest rates.

Reply by
JUS4DI41

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I have been paying my car off for over 2 years now with not one late or missed payment. In fact, all of my payments are in before the due date so I'm perplexed as to how my score is very poor. makes no sense.

Reply by
val2k90

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I have the same situation as you except I'm a lot older (probably) and have  been driving far longer than 12 years. My credit rating is Excellent and always has been, 100% on time payments, 4% credit card utilization, etc. I've no driving tickets accidents, claims..... and yet this shows a "Fair" on the auto insurance. So I don't begin to understand the correlation because there surely doesn't seem to be one whatsoever.

Reply by
bethygyrle

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i have renter's insurance, i paid the bill in full when i opened the policy, but i have a poor rating on that, as for my auto insurance i pay my bill ontime every month without missing a single payment, and that has a poor rating. my debt to income is a whopping 2% (is my truck) but in the past 3 years of trying to repair the damage done to my credit after my divorce i have gone from $70k debt to $20k debt in just over 3 years and my overall credit rating has yet to go up... these credit places tell me to get credit cards but i get denied cause of my poor rating hence i can't get one... so what am i supposed to do? in another year i will have $0 debt and still a poor credit rating, beginning to believe it has been a total waste of my time to even try to improve it concidering i seem to be going down a tunnel that is getting smaller and smaller and no exit in sight

Reply by
working24x7

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Insurance co's want as much from us as they can get.  They have a hug lobby in DC to get what they want from Congress and all of us.  Pretty disgusting. These credit ratings are so out of wack and need to be updated.  

Reply by
Northrup

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Me, too.

Reply by
ridgedweller

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Mine is the exact same thing. Puzzling!

Reply by
pbiaggio

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I dont understand why you pay your rates every month to your insurance company,and If someone runs into you, it goes against you.I think thats bs.raise the person at fault.They want the money and dont want to pay any out.

Reply by
motorcyclebabe

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Mine is worst. I have an excellent Vantage and Trans score, I own my car, never took a loan on it, never filed a claim, no tickets, 2% Debt to income(on credit cards), and yet my auto score is poor.

Reply by
dheerajnagpal

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so snapshot really works?
 

Reply by
cdf19699

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And where does the Home Insurance Score come from.  Every score is Good, or within a few points of being good.  But my home insurance score is listed as very poor.  No explanation.  I've been a home owner for over 40 years and have yet to file a claim.  I've lived in my current home for over 10 years.  Payments have always been on time and I've filed no claims.  Where does this score come from?

Reply by
lgould48

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Snapshot is really nice.  They grade on how few "hard brakes" you make, how many miles you drive per day and how often you drive between midnight and 4 a.m.  Doing well in any catagory means discount.  It's nice to have insurace discounts that are actually based on how you drive.  My credit score is "fair" because I have a low paying job I love, just two miles from where I live, don't owe a billion different accounts, only buy the simple stuff I actually need... these traits go hand-in-hand with my good-driving stick-in-the-mud traits.  Snapshot is a good common sense kind of program; I wish there were more of those. 

Reply by
jenlyn

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I disagree with the auto and home insurance scores.  On'es credit rating has absolutely zero to do with the likelyhood of one filing a claim.

And while I would recommend USAA to all current/prior military personnel, Progressive's "Snapshot" is a wonderful tool.

Reply by
TheUninvited1

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Statistician here.

It is quite the puzzle.  It is a very complicated subject with very complicated answers, but I will try to help you understand it as best as I can.

All of these things - credit scores, auto insurance, etc. are built merely off of very advanced statistical models.   You are part of a very large, complicated set of equations with a lot of inputs that spits out a probability unique to you.

The Auto Insurance Credit Score was developed by statisticians and actuaries who found that those credit scores are significant indicators of a person's probability of filing a claim.  In the statistics world, when you have hundreds of millions of datapoints - all of which are people - the numbers and models do not lie.  The answer is not that there might be a correlation, the answer is that there *is* a high correlation that is able to be used to develop more accurate predictive models.

They will never release these models to you because they're not only highly guarded trade secrets, but they will also allow you to circumvent the system and render the models null and void.  It is the same as if you are in an experiment and are aware that you are, in fact, in an experiment - the effectiveness of the data collection from the experiment decreases drastically if the subject knows he or she is in an experiment.

The reason why you will be getting a lower insurance record with Snapshot is for the same reason as the Auto Insurance Credit Score is used:  those two simple metrics - hard starts and hard stops - are highly correlated with how a person's overall driving habits are, which further indicates a person's probability in filing a claim.

I hope this helps clarify.

Reply by
Statsdude

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I do studies all the time in the course of my profession and I am an expert in statistics... I can assure you that there is some validity to the suspicions expressed by other here. For example, if you know what you are doing, it is rather easy make one set of input datum, within a relatively high confidence interval say 80%, correlate to some randomly selected anticipated outcome or result. There is nothing magic or worthwhile to the facts being claimed by the insurance industry that says this or that. Its all BS used to increase profitability. And no, I am not some bitter whatever some person may later add after reading my message. My scores are all high and frankly I dont give a **** at my age! Cheers...

Comment by
jaden123451

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I agree Jaden. I've also studied statistics during my engineering and MBA and what you're saying is completely sensible.

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Reply by
gurjinder81

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I totally agree with you.

Reply by
motorcyclebabe

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1 i have seen women with 3 accidents in 3 years get better insurance rates than me knock on wood with no accidents or tickets in 30 years but they have you beleave bye my score im going to file a claim tomorrow. 2 filed bankrupcy due to disability getting social security disabilty and not filing on dept you cant pay would be stupid. Reason most people insurance score is high isnt credit. Its coverage. Most my life ive been on joint policy or under employer coverage. The score is a non coverage extortion score. just like obama laws on medical insurance fines is extortion. truth is if we had government based medical. And no fault insurance across the board they could cut cost of this country bye 90 percent in prices increased just to get the insurance deductables out of the way and insurance depreciations out of the way.

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Reply by
ernestf01

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I DONT GIVE A HOOT EITHER!! THESE NUMBERS DONT TELL WHO I AM. I HAVE MANAGED TO DO JUST FINE WITH OR WITHOUT A HIGHER CREDIT SCORE. I'M GOING TO KEEP ON LIVING :)

Reply by
cynj6

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Right! Numbers are manipulated for profit.

Now, this also reaches into the medical  system and whoever makes the numbers required for normalcy ei. Blood pressure, sugar, chlolesterol, etc. 

I have questioned this for years, who's really in charge here?

Drug manufcturers? Medical insurance?

no brain surgeon needed here!

Reply by
cjin

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  You hit the nail on the head.   Using correlation scores this way is total garbage.  There is no cause and effect.  The only interpretation is that as one value changes, to a certain degree the other value changes.    You cannot infer a relationship, but that is not the purpose of this false science.  It tries to add creditability to the insurance industry's fleecing of a math challenged public.   You can bet your bottom dollar, if you have one left, that they ensured the math would work on their side to pump up the premiums.

Reply by
starlifter77

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I believe it is for profit. It states I have a very poor credit rating with insurance companies. Yet I have never missed a pyment in over 20 years and have had the same carrier for over 10. I am new to credit karma, If I looked at this everyday, I would be addicted to allowing big banks and companies who want to make profits off of unsuspecting victims to ruin my emotional health. I am not my credit cards, I am not irresponsible, I am a number given to decide my fate to people who hold all the cards. Its best to just live simply.

Reply by
harmonica3

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I'm really upset because my insurance score was 850 dropped down to 821 because I use my credit cards, that's BS and Home Owners Insurance score is low because mine is included with my condo dues, flat out BS! My insurance is always on time and so is everything else!

Reply by
Rjacobs827

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Please speak english not statistic

Reply by
CLR1989

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First Jaden, Not everyone is an expert in statistics so please, take your "high confidence interval" and your " Frankly I don't give a ****" and gloat elsewhere.  Most of us are on here to find out information about our credit reports and help each other make sense of it.   Since your credit scores are "all high"  why don't you go out and buy something expensive and big and help out our economy.

Reply by
hellonurse57

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