CreditMythBuster774

2 Contributions 3,166 People Helped

Member Since: March 2014

Most Helpful Contribution

how can i raise my credit score 100 points in 6 months

Nov 30, 2014
Creating a Plan to Improve Your Score
Helpful to 2014 out of 2484 people

I run the consumer loan department for a midsize bank.

I have read a lot of bad advise as to how a person can raise their score 100 points or more in a short period of time. The truth is, you can raise your scores, it takes time and some of the advice given will actually hurt your score.

For example:

Having your limits increased every three months. While it’s true that a larger unused limit will improve your utilization, this advice is flawed for several reasons. 

Each time you request an increase in your limit, most lender will re-pull your credit, creating another inquiry. Too many inquiries will hurt your credit. Furthermore, most lenders will not increase your limit every three months. Therefore, you have actually lowered your score (due to the inquiry), which unfortunately makes it harder to get credit.

Improving your score is not a one stop fits all recipe. Depending on your individual credit you may want to apply for a loan, or consolidate your bills, or pay off debt. But what if you have a bad score and only 10% utilization? Then the solution for your situation would be different from someone with a low score due to high credit card utilization.

The first step to improving your credit is to analyze why your score is low, then create a plan to rectify the issue.

Activity (2 Total Contributions)

credit scores vs credit karma scores

Nov 30, 2014
VP Consumer Lending
Helpful to 1152 out of 1350 people

I run the consumer loan department for a midsize bank and as part of my job I study credit-scoring models.

I have read a lot of reasons as to why your score differ between bureaus and why Credit Karma's score seems to be different from other websites that pull credit. The truth is, there are many scoring models and each one will give your bureau a different score. There are models that specialize in credit cards, mortgages and auto. For instance, the most current version of FICO is FICO 8. However, if a lender specializes in auto loans, they would pull a FICO (auto 8) and not a generic FICO 8. 

Vantage 3 is the newest scoring model and was created by all three bureaus (Experian, Equifax and Trans Union). If the information on all three bureaus were the identical, your score using vantage 3 would be identical on all three bureaus. However, many lending institutions have not yet adopted Vantage 3; therefore each credit bureau uses a different scoring model leading to differences in scores.

Credit Karma uses 2 different scoring models. The first Tab I believe is vantage 3 however the second TAB is Vantage 2. Vantage 2 is confusing, as the score does not stop at 850 like all the other models. So a score of 750 on Vantage 2 no longer means excellent credit as the model goes to a maximum of 990.

All of the models in use are designed to predict the percentage of loans at a given score that will go bad within the next 2 years. So a person who has never missed a car payment but has a few late payments on a credit card should score higher on an auto-scoring model. The reverse is also true, that person would score lower on a credit-scoring model.

For some people, Credit Karma will appear to give a higher score over other website scores while others will experience the reverse. The truth is all of these models will give you a general idea as to how the banks will view your credit. If your score goes up on one model there is a good chance it will go up on the other models.

how can i raise my credit score 100 points in 6 months

Nov 30, 2014
Creating a Plan to Improve Your Score
Helpful to 2014 out of 2484 people

I run the consumer loan department for a midsize bank.

I have read a lot of bad advise as to how a person can raise their score 100 points or more in a short period of time. The truth is, you can raise your scores, it takes time and some of the advice given will actually hurt your score.

For example:

Having your limits increased every three months. While it’s true that a larger unused limit will improve your utilization, this advice is flawed for several reasons. 

Each time you request an increase in your limit, most lender will re-pull your credit, creating another inquiry. Too many inquiries will hurt your credit. Furthermore, most lenders will not increase your limit every three months. Therefore, you have actually lowered your score (due to the inquiry), which unfortunately makes it harder to get credit.

Improving your score is not a one stop fits all recipe. Depending on your individual credit you may want to apply for a loan, or consolidate your bills, or pay off debt. But what if you have a bad score and only 10% utilization? Then the solution for your situation would be different from someone with a low score due to high credit card utilization.

The first step to improving your credit is to analyze why your score is low, then create a plan to rectify the issue.