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 free VantageScore 3.0 credit scores from two major bureaus, TransUnion and Equifax. We also provide an auto insurance score and home insurance score from TransUnion. Aside from the VantageScore 3.0 score provided by Equifax, which uses your Equifax credit report, each score is calculated using the data in your TransUnion credit report.

VantageScore

VantageScore 3.0, which ranges from 300-850, 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.

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.

Auto Insurance Score

Your Auto Insurance Score, with ranges from 150 to 950, is 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. Note that your insurance score is only based off of credit report information. It doesn't matter if you don't own a car, have never filed an insurance claim and have a clean driving record.

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. It is also only based off of credit report information. Whether you own a home or have a mortgage or have never filed an insurance claim doesn't factor into the calculation of this score.

Bottom Line

Remember that these 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 could result in improved credit health across the board. Credit Karma provides these scores free of charge, so come back to check your progress.

Disclaimer: All information posted to this site was accurate at the time of its initial publication. Efforts have been made to keep the content up to date and accurate. However, Credit Karma does not make any guarantees about the accuracy or completeness of the information provided. For complete details of any products mentioned, visit bank or issuer website.

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2 Contributions
5 People Helped

Helpful to 5 out of 5 people

My credit karma score dropped from 769 to 667 for no reason at all, So i called transunion credit bureau and bought my real credit score 732, So i guess if you go by credit karma's score it could hold you back from doing things you might want to do,

1 Contribution
13 People Helped

Helpful to 13 out of 14 people

If you are going to report someone's credit score you need to keep current info as I just looked and my info and are way behind..

1 Contribution
20 People Helped

Helpful to 20 out of 22 people

The insurance industry is just a legalized mafia... Protection money plain and simple... Rates and calculations are ridiculous only meant to keep the poor poorer.

1 Contribution
7 People Helped

Helpful to 7 out of 7 people

It is a massive scam.  Try to get rid of your debt and you get rid of your credit score.  As to auto insurance, some agencies don't check the score or your credit.   That's just another scam, I mean will having an 800 credit score make you a better driver?

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Reply by
love14mr38

79 Contributions
110 People Helped
Helpful to 3 out of 3 people

Amen!!! It truly is a scam the companies uses many time against the consumer.

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Reply by
Jasper2

198 Contributions
816 People Helped
Helpful to 3 out of 4 people

Virtually all insurance companies check your credit score...not only when they are considering you as an insured, but also when your renewal comes up.  They also check your driving and claims record, and the insurance scores as well.

Even if you get rid of all of your debt you will still have a credit score.  In fact, for credit cards, when you zero out your debt (and keep the card) your score will go higher!  Car loans, as they are paid down, also increase your credit score.  When it is paid off, they no longer consider it because it doesn't exist anymore!

A higher credit score correlates with less chance of a claim.  A low score correlates with higher risk.  That is a fact.  Doesn't necessarily mean you will or won't have an accident.  It is the risk that they are assessing.  If your drive a 600 horsepower Maserati, and have a perfect driving record and no claims, you will still be considered a much higher risk than if you drive a Prius.

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Reply by
Jasper2

198 Contributions
816 People Helped
Helpful to 2 out of 4 people

That's totally false.  You have a credit score whether or not you have debt.  If you pay off credit cards (AND keep the account open!) this will improve your score.  If you charge up to your limit and pay minimum payments, this will hurt your score.

Insurance agents do not underwrite the policies they sell!  The insurance companies do that, and virtually ALL of them use both your credit score and your insurance scores (from Lexis-Nexis).

It isn't about how "good" a driver you are.  It's about the risk you will file a claim.  It is a documented fact that people with low credit scores and low insurance scores are more likely to file a claim than those with high scores.  

It might come as a surprise to you, but insurance companies are in business to make a profit.  If they insure bad risks, their profits go down, and their premiums go up.  

If you have a perfect credit score (really no such thing!) and high insurance scores, go out and buy a Maserati sports car and rack up a lot of speeding tickets.  Even if you have no claims, you are LIKELY to have one, and probably a very big one.  

That's why how "good" of a driver you are is pretty irrelevant to what you pay for car insurance.  You can still be a very bad risk.

It is a proven fact that people who manage their finances poorly and consequently have poor credit scores are far more likely have claims against their insurance policies.

Here's a suggestion:  Manage your finances by spending less than you earn and paying your bills promptly and in full.  Don't get turned over to collection agencies, and don't have judgements made against you.  Drive responsibly and don't get tickets and get involved in car accidents.

Insurance companies will fall over each other to write you a low premium high value policy.

It isn't rocket science. 

7 Contributions
19 People Helped

Helpful to 9 out of 11 people

These scores are not a legitimate representation of our creditworthiness.  We are not customers of the credit reporting agencies. The scores are a tool for mortgage, insurance, credit card companies, etc. to make more money.  By us having lower scores, they can charge us more.  So there is no incentive to correcting the system.

Like others here, I am older and with 30 years+ (their number), I have "fair" credit.  I have paid my legitimate bills on time for the most part.  But I have negative marks for 4 late mortgage payments (paid off a 30 year mortage in 7 years), using too high a percetage of available credit (zero balance ~ according to their report) and other nonsensical reasoning.

However, I now try to keep a small amount of BAD credit.  I think it keeps the identity thieves away.  I look at it like having a dog.  The thief will most likely go on to the next house without a dog.  Just easier.  I pay all of my legitimate bills.  But I don't try to resolve the bogus ones.  I'm not going to pay them, so I let my "bad credit" work for me.

I was just approved for a new mortgage (not selling my old house until I move into the new one).  I had to get it locally with someone with whom I could explain my credit report.  He used something called "common sense" and I didn't have any problem.  I couldn't get one of those online, nebulous loans through a "national" mortgage company.  I'm good with that.

Fellow seniors ~ do not think of your credit score as a blight on your credit.  Recognize it for what it is:  another scam.

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Reply by
love14mr38

79 Contributions
110 People Helped
Helpful to 4 out of 6 people

You had the right idea.  Having "fair credit" does keep the thieves away. They know even our cash is "rejected". That is a "military term" used back in the 80, 90, & part of 2000. So keeping fair credit we get what  "what we need" when time permit. Yes, it is a scam for getting more monies out of us. We are just as smart as the system, because when we ask questions business or credit cards get nervous. I tell them if my credit is so bad, how is yours???? They look as thougn their hands were caught in the cookie jar without permission.

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Reply by
Jasper2

198 Contributions
816 People Helped
Helpful to 8 out of 11 people

Don't mean to doubt your word, but explaining something to your local bank to convince them to ignore bad credit is not going to work.  Banks who originate mortgage loans nearly always sell them and retain only the servicing for the account (you still may send your payments to them even after they sell the mortgage.  Underwriters are very wary of unpaid accounts...particularly now.  In most cases, even with substantial down payment, you need an average FICO (not "FAKO") score in the mid to upper 700's.  

If you don't pay your bills, they will go into collection.  That will be a ding that takes years to outlive.

Identity thieves don't have access to your credit score, so how could a low score affect their willingness to steal your identity?

You are giving out VERY bad advice.  If you don't think you owe a bill, then challenge it!  Ignoring it will "come back to BITE you."  Just like an angry dog.

3 Contributions
4 People Helped

Helpful to 4 out of 4 people

All this is for the big companies to screw with the middle income. My auto insurance score has been even until yesterday when it took a steep drop. And guess what? My renewal is coming due this month!!!!! Guess they figured out how to raise my rates and I don't even has to do a thing . This is such bull****. Somebody should pull in the reigns on these freakin credit score companies. What they do should be illeagle!  I am finding out you don't have to do a thing and it will take you for a ride. Too much control over peoples lives!

1 Contribution
4 People Helped

Helpful to 4 out of 4 people

I think it is just plain wrong for these companies to have so much impact on our lives because of how the credit scores are used.  My scores are as follows:

Vantage Score               886

Auto Ins Score               892

Home Ins Score             935

Credit Card Utilization        A

Payment History                 A

Age of Credit                       A

Total Accounts                    C     (15 accounts)

Credit Inquires                     B    ( 2)

Derogatory Marks                A

Overall Score                      C       686

WHAT GIVES????

1 Contribution
6 People Helped

Helpful to 6 out of 6 people

I paid down my credit card debt by over  $2,000 last month and now my score according to Credit Karma has dropped 40 points.  This just doen't make sense!!!!  What is the deal?  They tell you to pay down your credit card debt percentage, but why if the score goes down?

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Reply by
love14mr38

79 Contributions
110 People Helped
Helpful to 2 out of 2 people

Because they say these  things for us to conform to lies being told by the Credit bureaus. No matter if you pay more than expected in set  payments. This does not change your score either. I suggest do what is set in your heart  to do and let all else fall on them. I pay more on my credit cards than set, it does not change my score at all.

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Reply by
Jasper2

198 Contributions
816 People Helped
Helpful to 8 out of 8 people

Your credit score is determined in part by your available credit and the percentage of that credit you are using.  If you pay down your debt AND leave the account open, your credit score will go up unless you did something else that same month that would make it go down.  Forty points is HUGE.  Look at your actual credit report, not Credit Karma.  Banks and other lenders don't care about that score.

If you want your actual FICO score, the only place you can get it is from myFICO.  You will have to pay to get that.  The credit bureaus will give you a free copy of your report annually, or if you were turned down for credit based on their score.  However, the scores of the credit bureaus are different from FICO.  Usually tthey are higher.

Reply by
Proffrog

1 Contribution
0 People Helped

Amen! My score fell 2 points between 1/14 and 3/14-explanation I have NO debt,primarily credtirt card.

1 Contribution
6 People Helped

Helpful to 6 out of 6 people

Paid off my home mortgage and my insurance score dropped 80 points.  Remember the good ole days when mortgage brokers placed worthless paper on inflated property assessments to people who couldn't afford the monthly payment so they could build large investment portfolios only to sell to the likes of Goldman Sachs, with the worthless paper insured by AIG to guarantee that hedge fund managers would become wealthy when the bottom dropped out.  And yes, let's not forget the insurance industry that remains fat  and happy  using self-serving "models" that would make Vegas oddsmakers drool!

2 Contributions
6 People Helped

Helpful to 6 out of 6 people

The home owner and auto insurance scores really tick me off.  With applying for a loan, TOTALLY get it.  But auto and home insurance?  Sorry, that's bull.  We're in our 40s and 50s, have been driving 20+ and 30+ years as well as owned homes for over 20 years each.  Neither have EVER filed a claim for auto or home insurance.  Our credit is crap because my husband is dying of a terminal illness and our finances took a nose dive.  As if dealing with the coming loss of a spouse isn't bad enough, now the auto and home insurance companies are going to jump on the band wagon too.  It's so wrong.  Want to know if someone you're insuring a vehicle for is going to wreck it?  Pull their driving history.  If they're young, yes, you charge more because there's not enough history to give you a solid idea of how responsible they are behind the wheel.  But to say that people with poor credit should pay more is BS.  Same with homeowners.  SO very wrong on so very many levels.  All you do is pull their history to see if they've burned down homes in the past or been cited for poor driving and you get your answer. 

Reply by
Joulles

7 Contributions
19 People Helped
Helpful to 5 out of 5 people

I'm so sorry to hear about your husband.   I can only imagine how much worse these jerks are making your life.

When someone calls us up and says we've won an all expenses paid trip to Europe and all we have to do is send them a $500 processing fee, we know it's a scam and hang up.

If we get an email from someone saying they will share millions of dollars with us if we just send them our bank account numbers, we recognize it as someone trying to clean out our accounts and we don't answer.

But the credit bureaus have found a way to make money on us by holding our credit rating hostage.  Not only do lenders pay to get our "credit scores" (and they like them the -lower-the-better), but we feed them by sometimes paying for those scores as well.  Talk about adding insult to injury!

There is no incentive for the credit reporting agencies to change.  The lenders (who pay them) like the lower scores so they can charge us more.  And we have no influence at all.  

It would take someone to start a new reporting agency, similar to Angie's List.  Angie charges a small amount per year, but I'll bet she makes plenty.

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Reply by
Jasper2

198 Contributions
816 People Helped
Helpful to 3 out of 4 people

Your auto and homeowner's insurance score does not come from the credit bureaus.  It comes from Lexis-Nexis.  While they use information from the credit bureaus, but is calculated completely differently.  The purpose of these scores is to predict how likely it is that you will file a claim.  The purpose of your credit scores is to predict how likely it is that you will default on a loan or credit card.  Not the same purpose, as you can see.

The insurance scores have well over a hundred metrics, many of which do not affect credit scores.  Many of them will not be affected by your credit behavior (some are).  A good many can't be controlled directly.  Where you live, debt to income ratio, How long have you had credit, and how much of your credit is recent.  Many, many more.

That said, the insurance scores are only one of many factors that go into whether a company will write a policy for you, what limits they impose, and how much you will have to pay.

I have only a "fair" auto insurance score (CK's "C").  However, on Lexis-Nexis my score is rated as "good."  Lexis-Nexis doesn't have a score rating higher than "good."  There is no "excellent" yet CK correlates their "A" score as "excellent."

If you have a good driving and claim record, and your actual credit rating (also used by the insurance companies) is good or excellent, you will likely get a good policy at a competitive rate, even if you have a low insurance score.

In other words, don't lose any sleep over a "fair" insurance score.  If your credit is "crap" then it will hurt you on your insurance premiums, or whether you can even get standard insurance.  Why?  Because it is well understood that on average, people with poor credit are bad risks.

You might also be denied a job (they use credit ratings, too) because of bad credit.  Or a lease on a home or apartment as well.  Rating bureaus don't know anything more than the facts reported to you.

People love to take "credit" for a high credit score, yet others think that a bad credit rating isn't "their fault."  The fact is, that far more often than not, people earn their credit ratings, whatever they might be.  Not perfect, but in the rea world, nothing is.

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198 Contributions
816 People Helped

Helpful to 6 out of 6 people

Kjeroh,

I did not always have high income.  But I have never spent more than I earned and could comfortably pay off.  I have never "borrowed" at high interest rates.  

The fact is, like it or not, you have to live within your means or you will always be broke.  If you learn the habit of saving the money in a rainy day account instead of spending impulsively on stuff you really don't need, you will find that the rainy day is unlikely to come.  I guard my "rainy day" account jealously and have never touched that account to buy stuff or for the rainy day that oddly has never come.

You can't spend your way out of financial troubles.  The only way you can avoid debt is always to spend less than you earn.  That's true no matter what your income.

Can't afford to support a family?  Don't have kids!  Can't afford a new car?  Buy a junker and pay for it with cash.  Can't afford a junker?  Take the bus.  People I know who laughed at me for

an old car aren't laughing at me now when they know I can easily pay cash for a new one.  However, I don't need a new car, and a good 3 year old car can easily be driven for 7 more!

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Reply by
kjeroh

22 Contributions
151 People Helped
Helpful to 7 out of 8 people

Jaspers,

You comment on best case scenarios. It always drives me nuts when someone says "Can't afford to support a family? Don't have kids!" What if when you start out you can support a family? You have a child with asthma, but have good health insurance through your job. Then it all disappears. A person loses a job and the benefits then it isn't so easy maintaining that perfect budget. Or maybe the kid turns out to have special needs? Or the insurance has annual limits?

I could give a host of situations: when I was disabled I had a good job with a great future. I had even purchased additional  disability insurance coverage. However, it took 18 months before Social Security Disability kicked in. COBRA and a host of copays and my savings quicklly disappeared. My health costs are still brutal, eating 20% if a fixed income. I tried returning to work three times just to try to catch up and each attempt ended worse than the last.

Or a friend who also had a good job, but the company fell on hard times. She lost full time status along with the benefits. A medicval problem that required surgery which she put off as long as she could, while she tried to find another job and finish school to earn an associates degree to expand her options, which strained already meager resources.

These are the realities that people face every day, from coast-to-coast, lakes to Gulf.  If you've always been able to "live within your means" then you've been extremely fortuinate. Most people have not been blessed that way. I would bet that most of Credit Karma's users have hot hard times and are here seeking help.

While you offer some insights, it seems more like you boast your good fortune and then chastise anyone not fortunate enough to have your circumstances. "Don't have kids!" A verty simplistic admonishment/solution. Reality is that people get hit with unforeseen disasters and the best laid plans crumble.

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Reply by
Jasper2

198 Contributions
816 People Helped
Helpful to 3 out of 6 people

Kjeroh,

I realize that bad things sometimes happen to good people.  But having good credit is not an "accident" although I agree that losing it sometimes has to do with chance.  

That said, granters of credit are not charities.  They are businesses, and in many cases, have shareholders who invest their money with them based on the fact that they are profitable and safe investments.  They need to use outside metrics that have been shown to be good predictors of credit behavior.  Would you rather have them toss the dice?

No credit rating service is perfect, but if they didn't work reasonably well for the people who pay for their service, those companies would be out of business in a heartbeat.

The vast majority of people with good credit have earned it, and the same is true of people with bad credit.  You don't have to be wealthy to have good credit.  You just have to live within your means.

One single bad move, like a bankruptcy or a judgement against you can wreak havoc on the best of credit scores.  It doesn't really matter to creditors what the reason was.

On the other hand, it takes years to build or rebuild credit that has not been established or that has been badly damaged.  Those are the facts of life if you are using credit.  These are the cold, hard facts of life.

The only borrowing I have ever made was for a mortgage on my first home.  I have lived modestly and never purchased anything I couldn't pay for immediately.  I am not wealthy by any means, but I have no debt other than credit cards, all of which I pay completely every month.  This is not a boast.  I don't think good credit is anything to boast about.  But I do follow my own advice, and that is why my credit is good.  If I lost everything I own, I wouldn't owe anyone anything.  If I lost my job, I wouldn't have any bills to pay, and I could continue to live pretty much the way I always have...modestly.

Even if one has bad credit, you can start again immediately on a better path and reestablish good credit over time.  But borrowing for things you can't afford will never buy you the good life...it will only get you in trouble.  That is far and away the reason most people get into trouble financially.

Lastly, my remarks about the realities of credit ratings do not apply to anyone individually.  If you have had challenges in your life that have been setbacks, it isn't the credit bureau's fault for reporting the financial affects of those setbacks.  Granters of credit are businesses, not a rich uncle of a favorite nephew.

Ultimately, we all are accountable for our own financial behavior.

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Reply by
gurjinder81

10 Contributions
1216 People Helped

Kjeroh,

I agree with you. Sometimes the best laid plans do crumble. Look at our country for instance; Federal shutdown for almost a month now. Our government itself wasn't living within it's means! The government that has run the richest country in the world!!! Sometimes you just can't anticipate future, cuz guess what, we're not Gods. I like most of Jasper's comments, but with every comment I also got a feel that Jasper could possibly be an employee at one of these credit agencies. Apprently Jasper is always defending the credit-bureaus and bashing common people.

I know many many people in our country don't know how to live within their means, but not everyone goes through hard times because of their own mistakes. Sometimes it's just misfortune. I am Financially educated, I work in the Financial field, I understand economics more than an average person I believe, I have an MBA degree, and I have successfuly managed my finances for more than 14 years (since I left high school). But does it mean that I never had to go through hard times?? Hello no! An employer decided to go belly-up and my paychecks stopped all of a sudden. In 2008, my whole industry (Financial sector) was crumbling down, and I had to take a toll. My sister decided to get married at the same time and being her only brother I had to take an international flight to go attend her wedding, and all this happened right after I had tied the knot with my girlfriend of 4 years. When I was getting maried, I did not anticipate all this will happen at the same time. Guess what I did? Let my credit cards carry a balance to the next month for the first time in my life. I somehow managed to still keep a good credit becuase I kept paying at least the minimum on each card. But not everyone has been fortunate enough. I know some very smart and talented people IN the Finance sector who suferred because the market crashed right after they had bought a house that they could aford back then but all of a sudden the affordibility vaporized.

Having said all this, I completely agree that it's not the credit-bureaus responsibility to account for the REASON for someone's economic condition/hardship; they can only collect information about the financial effect of their situation. BUT, it's the lenders that use this information that I have a problem with. These are the same people who brought our country to her knees in 2008, by convincing not so financially-savvy common people to refinance and refinance to take equity out of their house, even when they knew these people will not be able to afford the new payments. But they didn't care! If they make the payment, Good. Otherwise they would foreclose the house. Losses? No, never! here's how: Imagine you are a credit card company. You give people high APR card because "they have low credit score". Let's imagine this person swipes the card to buy $1000 worht of goods. If the person can pay off the $1000+interest, then fine. Otherwise, you keep adding interest and late payment fees and all sorts of other fees to bring this amount up to $3500 before you consider it "unrecoverable money". At this point, you report these $3500 as loss on your income statement and this saves you $1000 in taxes. So, effectively, you never lose money in this game. Do you know that Bank Of America has been legally paying  $0 in taxes for the last many years, because of this and many other smart loophols they use? And here an average american is paying huge amount in taxes, not only to pay for the wars in Iraq and Afghanistan, but also to BAILOUT these very same banks? And what do these banks/lenders do after that? They come back and charge you interest? Don't you think there's a problem here in the picture? This money was yours to begin with, wasn't it? You gave money to the govt, the govt chanelled it to the banks, the banks LOAN you the money back and charge you interest???? That's why you have to live a modest life dude! because 30-40% of your income is gone before you ever see it and then these banks use these credit scores and other means to charge you high interest on the same money. Rest of your money goes into financing wars....the wars that America never needed; but who cares if common-americans want a war or not; the arms manufacturers want them!!! So, you work your butt-off to pay for the wars so these arms companies can take the profit. Billions of dollars worth of artillary was just bought with your dollars and dumped in trash in Iraq, yeah not even used just dumped, just so the arms dealers could make a profit. This is how the common-man is being robbed of their money. And that's why we all have to live a very modest life, and the smallest mistake or misfortune and we have to suffer for 7 years. And we are being told "it's your fault". Why don't I see Bank of America, Goldman Sachs, Merill Lynch getting money at high interest rate from the Fed because they messed up big time in 2008? Who maintains their own credit file? We just BAIL them out with common-man's money once again so they could charge us high APR?

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Reply by
gurjinder81

10 Contributions
1216 People Helped

Kjeroh,

I agree with you. Sometimes the best laid plans do crumble. Look at our country for instance; Federal shutdown for almost a month now. Our government itself wasn't living within it's means! The government that has run the richest country in the world!!! Sometimes you just can't anticipate future, cuz guess what, we're not Gods. I like most of Jasper's comments, but with every comment I also got a feel that Jasper could possibly be an employee at one of these credit agencies. Apprently Jasper is always defending the credit-bureaus and bashing common people.

I know many many people in our country don't know how to live within their means, but not everyone goes through hard times because of their own mistakes. Sometimes it's just misfortune. I am Financially educated, I work in the Financial field, I understand economics more than an average person I believe, I have an MBA degree, and I have successfuly managed my finances for more than 14 years (since I left high school). But does it mean that I never had to go through hard times?? Hello no! An employer decided to go belly-up and my paychecks stopped all of a sudden. In 2008, my whole industry (Financial sector) was crumbling down, and I had to take a toll. My sister decided to get married at the same time and being her only brother I had to take an international flight to go attend her wedding, and all this happened right after I had tied the knot with my girlfriend of 4 years. When I was getting maried, I did not anticipate all this will happen at the same time. Guess what I did? Let my credit cards carry a balance to the next month for the first time in my life. I somehow managed to still keep a good credit becuase I kept paying at least the minimum on each card. But not everyone has been fortunate enough. I know some very smart and talented people IN the Finance sector who suferred because the market crashed right after they had bought a house that they could aford back then but all of a sudden the affordibility vaporized.

Having said all this, I completely agree that it's not the credit-bureaus responsibility to account for the REASON for someone's economic condition/hardship; they can only collect information about the financial effect of their situation. BUT, it's the lenders that use this information that I have a problem with. These are the same people who brought our country to her knees in 2008, by convincing not so financially-savvy common people to refinance and refinance to take equity out of their house, even when they knew these people will not be able to afford the new payments. But they didn't care! If they make the payment, Good. Otherwise they would foreclose the house. Losses? No, never! here's how: Imagine you are a credit card company. You give people high APR card because "they have low credit score". Let's imagine this person swipes the card to buy $1000 worht of goods. If the person can pay off the $1000+interest, then fine. Otherwise, you keep adding interest and late payment fees and all sorts of other fees to bring this amount up to $3500 before you consider it "unrecoverable money". At this point, you report these $3500 as loss on your income statement and this saves you $1000 in taxes. So, effectively, you never lose money in this game. Do you know that Bank Of America has been legally paying  $0 in taxes for the last many years, because of this and many other smart loophols they use? And here an average american is paying huge amount in taxes, not only to pay for the wars in Iraq and Afghanistan, but also to BAILOUT these very same banks? And what do these banks/lenders do after that? They come back and charge you interest? Don't you think there's a problem here in the picture? This money was yours to begin with, wasn't it? You gave money to the govt, the govt chanelled it to the banks, the banks LOAN you the money back and charge you interest???? That's why you have to live a modest life dude! because 30-40% of your income is gone before you ever see it and then these banks use these credit scores and other means to charge you high interest on the same money. Rest of your money goes into financing wars....the wars that America never needed; but who cares if common-americans want a war or not; the arms manufacturers want them!!! So, you work your butt-off to pay for the wars so these arms companies can take the profit. Billions of dollars worth of artillary was just bought with your dollars and dumped in trash in Iraq, yeah not even used just dumped, just so the arms dealers could make a profit. This is how the common-man is being robbed of their money. And that's why we all have to live a very modest life, and the smallest mistake or misfortune and we have to suffer for 7 years. And we are being told "it's your fault". Why don't I see Bank of America, Goldman Sachs, Merill Lynch getting money at high interest rate from the Fed because they messed up big time in 2008? Who maintains their own credit file? We just BAIL them out with common-man's money once again so they could charge us high APR?

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Reply by
gurjinder81

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Kjeroh,

I agree with you. Sometimes the best laid plans do crumble. Look at our country for instance; Federal shutdown for almost a month now. Our government itself wasn't living within it's means! The government that has run the richest country in the world!!! Sometimes you just can't anticipate future, cuz guess what, we're not Gods. I like most of Jasper's comments, but with every comment I also got a feel that Jasper could possibly be an employee at one of these credit agencies. Apprently Jasper is always defending the credit-bureaus and bashing common people.

I know many many people in our country don't know how to live within their means, but not everyone goes through hard times because of their own mistakes. Sometimes it's just misfortune. I am Financially educated, I work in the Financial field, I understand economics more than an average person I believe, I have an MBA degree, and I have successfuly managed my finances for more than 14 years (since I left high school). But does it mean that I never had to go through hard times?? Hello no! An employer decided to go belly-up and my paychecks stopped all of a sudden. In 2008, my whole industry (Financial sector) was crumbling down, and I had to take a toll. My sister decided to get married at the same time and being her only brother I had to take an international flight to go attend her wedding, and all this happened right after I had tied the knot with my girlfriend of 4 years. When I was getting maried, I did not anticipate all this will happen at the same time. Guess what I did? Let my credit cards carry a balance to the next month for the first time in my life. I somehow managed to still keep a good credit becuase I kept paying at least the minimum on each card. But not everyone has been fortunate enough. I know some very smart and talented people IN the Finance sector who suferred because the market crashed right after they had bought a house that they could aford back then but all of a sudden the affordibility vaporized.

Having said all this, I completely agree that it's not the credit-bureaus responsibility to account for the REASON for someone's economic condition/hardship; they can only collect information about the financial effect of their situation. BUT, it's the lenders that use this information that I have a problem with. These are the same people who brought our country to her knees in 2008, by convincing not so financially-savvy common people to refinance and refinance to take equity out of their house, even when they knew these people will not be able to afford the new payments. But they didn't care! If they make the payment, Good. Otherwise they would foreclose the house. Losses? No, never! here's how: Imagine you are a credit card company. You give people high APR card because "they have low credit score". Let's imagine this person swipes the card to buy $1000 worht of goods. If the person can pay off the $1000+interest, then fine. Otherwise, you keep adding interest and late payment fees and all sorts of other fees to bring this amount up to $3500 before you consider it "unrecoverable money". At this point, you report these $3500 as loss on your income statement and this saves you $1000 in taxes. So, effectively, you never lose money in this game. Do you know that Bank Of America has been legally paying  $0 in taxes for the last many years, because of this and many other smart loophols they use? And here an average american is paying huge amount in taxes, not only to pay for the wars in Iraq and Afghanistan, but also to BAILOUT these very same banks? And what do these banks/lenders do after that? They come back and charge you interest? Don't you think there's a problem here in the picture? This money was yours to begin with, wasn't it? You gave money to the govt, the govt chanelled it to the banks, the banks LOAN you the money back and charge you interest???? That's why you have to live a modest life dude! because 30-40% of your income is gone before you ever see it and then these banks use these credit scores and other means to charge you high interest on the same money. Rest of your money goes into financing wars....the wars that America never needed; but who cares if common-americans want a war or not; the arms manufacturers want them!!! So, you work your butt-off to pay for the wars so these arms companies can take the profit. Billions of dollars worth of artillary was just bought with your dollars and dumped in trash in Iraq, yeah not even used just dumped, just so the arms dealers could make a profit. This is how the common-man is being robbed of their money. And that's why we all have to live a very modest life, and the smallest mistake or misfortune and we have to suffer for 7 years. And we are being told "it's your fault". Why don't I see Bank of America, Goldman Sachs, Merill Lynch getting money at high interest rate from the Fed because they messed up big time in 2008? Who maintains their own credit file? We just BAIL them out with common-man's money once again so they could charge us high APR?

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I wish I knew but now it's too late.  We had good credit and a bank account but huge $4500 monthly mortgage payments.  my husband passed away.  I thought it was bad to have potential to charge so much so I canceled all credit cards except the new ones I got after our recent move to this new home and state. Bought house during height of real estate market and it crashed shortly after.  Husband died and it took me 9 months to sell the house - at 150K less than what we paid for it.  Not having worked for 20 years it was difficult to make the mortgage payments but I did because I didn't want my credit dinged.  what credit?

Turns out, I should have not have canceled my old cards because now, I don't have much of a credit history.  Since the loan was paid off when I sold the house, there is no record of my perfect loan payments on credit reports - so I depleted my bank account for no reason.

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CreditKarma uses TransUnion  for its source to aquired data for its internal credit scoring algarhythums. Trans Union is anemic at best. and private scoring is equally useless to the consumer... Only the FICO score is of any real value.

Conveniently, CreditKarmas advertising neglects to  let people know that "cerdit score" is not the same as "FICO score" and misleads people who just watch their credit worthiness.

Someone should be scoring these companies like Credit Karma to give consumers an accurate picture of their services... seems their goal is to  get people to sign up for additional credit cards (which , by the way, will lower your score for "hard Inquiries" and "length of credit", so  dont let them sucker you into their marketing strategy.

I could probably write a book about all the irregularities I see with CreditKarma, but  why bother, just BEWARE

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Reply by
love14mr38

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I totally agree with you concenring rating these credit bureaus. We can through FTC.gov. Email them and they will help in this area also.

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I don't give a **** what these credit beaureus think. All these high rolling banksters are all crooks and thieves. Our entire financial and banking system is nothing more than a big racket to steal our money and keep us imprisoned as servile debt slaves!! My score is terrible and I am supposed to feel bad for it. Do these bankster crooks feel bad? They lie, cheat, steal, and ruin countless lives everyday, all the while living like kings and queens. When their schemes catch up to them and they can no longer stay afloat, they just buy our crooked politicians off, and get bailed out!! Every once in a while our bought and paid for politicians will burn some high roller to make it look good and look like they are watching out for us but they aren't. The truth is, they are all in bed together.  Used to be, auto insurance was optional. How much lobbying and back room deals did it take the insurance companies to get our politicians to pass laws mandating we buy their product. Health ins was optional. How much did it cost them to get that changed. There is no solution for everyday working people to these problems. We are powerless. We are servants to the lenders. Problem is, the entire system is designed to snare you and never let you go, and it is getting harder and harder to just decide not to participate, especially when they basically say that the government can mandate and force you to buy anything!! We are all basically screwed and living in a rotten stinking corrupt system run by crooks and there really is no real way out!!

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Reply by
Jasper2

198 Contributions
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So, you want to contribute to the fortunes of these "banksters, crooks, and thieves" by borrowing money from them at outrageous interest?  You wish to be in debt to them?  By the way, you should look up big words like "servile" before using them:

"having or showing an excessive willingness to serve or please others"

Sorry for the off-topic reply to your off-topic post.

Guess you'd like to be hit and disabled for life by an uninsured driver, right?

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THis whole system is bogus. The balance they show on my accounts was paid off months ago, but Credit Karma doesn't keep up at all. When I applies for a mortgage, my score was 815 even though this site shows.  768 - quite a difference. Further they show the age of my accounts as 12 years when they are at least 30 years. We just laugh at them. Nothing is even close to reality.

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credit companys are all  a bunch of   houey.

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Reply by
Jasper2

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Thanks for your thoughtful comment.  I'm sure everyone has been educated by your insight.

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What I dislike about the entire process are these two things:

1. NO ONE can explain how your credit score is made up and or from.

2. IF ANY company is going togather ANY info on you that information should be made available to you 24 hours a day 7 days a week 365 1/4 days a year and without ANY cost to you!

Credit Karma Team
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2489 Contributions
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Hi there,

Thanks for posting. It's true that the fomulas used to calculate credit scores are secret, but the major factors are well known. We agree that consumers should have access to their credit data for free, at all times. This is why we offer scores, reports, and monitoring...all for free! 

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How is it that my Vantage score is "Excellent", but my Auto Insurance score is "Poor" and my Home Insurance score is "Good"?  Since you don't give up how each score is calculated, how am I supposed to "improve" my overall scores?  Please give me something concrete I can work with.

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Just my opinion...Credit Karma has in my opinion relyed on Trans Union credit reporting to use as a gauge to score peoples credit rating... from my years of experience Trans Union is the worst of the tree major reporting agencies when it comes to disputes, removing incorrect or out dated information.  Not only that, when requesting your free....free credit report from Trans Union they make the consumer do cartwheels to receive it. Then when you finally receive it, its incorrect and disputing with them is worse than having major surgery.  It is my opinion that Trans Union is the credit reporting agencies for unscrupulous creditor, you know the ones that offer high interest rates.

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My credit score just minus 58 points few minutes ago and I don't know why. I don't have any late payment or own any payment. Can someone tell me why?  Thanks!  

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Reply by
switchman70

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Helpful to 2 out of 2 people

Interesting, you should see something to explain - Utilization, AAoA, or Public record/collection would be a change to reflect such a jump.

If you could look into and  follow up with post it would help others know why you had such a change

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My Transunion Score that I recieved at the same time I got Credit Karma was 646. Credit Karma shows Transunion at 550. LOL. Im sure they are up to date on everything! RIGHT.

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This whole nonsense of "credit scores" has always been about the international bankers who established the banking system eons ago. It is set up for the majority of people to FAIL. It obviously does not matter whether or not you have a perfect driving record or have never filed any claims for your home or car. It states that these "scores" are not based upon THINGS THAT REALLY MATTER. They are based upon whatever the elitist international bankers establish as the "rules" we must follow in order to jump through all their hoops and red tape, and even when we do, we are still given an unfair score. I have experienced this my entire life, but I've also been aware of these elitist idiots who control everything. It sickens me that people don't wake up to this constant BS and do something about it. The banks can do whatever they want -- put our economy in all kinds of trouble and still get bailed out by the puppet-president, while we pay for all their mistakes. This whole "Credit Karma" is total BS! And their "offers" (if you take them) do NOT help you! They cause you to be in a worse situation than before. I don't buy into anything they advise because they are all liars, along with the whole lot of the corporate elite who are nothing more than money mongers, preying upon our rights that the Constitution affords us, which they do not (and have not) backed to protect the citizens from this type of "legal" piracy. The "Law" is unlawful and unjust, and the world would be better off to see all of these bankers behind bars.

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INACCURATE, INCOMPLETE, DATES ARE WRONG, AND NO WAY TO CONTACT CK.

Credit Karma Team
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2489 Contributions
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Hi Gene, 

You can contact us via our Help Center (help.creditkarma.com) or by sending an email: support@creditkarma.com. 

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Credit Karma has my credit score at 715 but last October I purchased a RV Travel Trailer and the credit union had my score at 830. Two weeks ago I applied for a Home Equity Line of Credit and that score came back as 828 from the bank. The score at Credit Karma is useless.

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WOW - my homeowners insurance rating is "very poor"....I have owned four homes and have NEVER filed a claim.  Payments made on time (student loan ONLY)  credit card paid off every month (no balance is ever carried forward),  and cannot get number above 700. 

Credit Karma Team
Top Contributor
2489 Contributions
2676 People Helped

Hi benphildeb,

Your home insurance score is calculated using a proprietary algorithm and your credit report data. Whether or not you own a home, or have ever filed a claim are not factors -- just your credit data.

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