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Question By
azlawguy

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Credit Report Card grade makes no sense compared to individual grades
So, on the home page, there is a Credit Report Card with an overall grade and 6 individual grades. My six individual grades are 3 A's and 3 B's, but somehow my overall grade is a C. How can 3 A's and 3 B's average out to a C? Clearly that doesn't make any sense.

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Credit Karma’s Response

Hi Azlawguy, I'm happy to address this for you.


Your overall grade is based on the range your credit score falls into, not an average of your other grades in the Credit Report Card. For example, a score of 750 will always be an "A", even if your Credit Report Card grades are straight "F"'s.


It's important to know that the grades on the Credit Report Card do not affect your credit score; they're simply a comparison metric. Here's how they work:


The letter grades are determined by averaging the scores of Credit Karma members within each range. This doesn't mean that all members with a "D" or an "F" in one particular metric will have a low credit score, but that *on average* members within that range have a lower credit score. Again, the overall grade is not an average of your Credit Report Card components.

Disclaimer: Credit Karma provides general information about credit. This advice is not intended to advise about your personal financial situation. Consult a financial, legal or other professional adviser.

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Okay, I can see 2 B's in very important categories outweighing 4 A's, and ending up with an overall B.  However, there is no possible way for B's to pull A's clear down to C's.  Just do the math as A=90%, B=80% and C equals 70%.  No matter how you weigh a group of 80s and 90s, you cannot mathematically combine them and end up with something in the 70s--it's simply impossible.

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I had the same experience

I had 4 A's and 2 B's and got a C. It makes no sense whatsoever.  raholden88, sorry, but your suggestion makes no mathematical sense whatsoever.

Can someone from Credit Karma please answer this question, and explain how you proceed with such a calculation that arrives at this particular grade?

Thank you!

Reply by
Bruin55

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I rechecked. I had A's in each of the "High influence" categories, and the B's were in "Medium" and "Low" influence categories. So a general grade of C makes even less sense.

Using the college grading model, if we say a High" is 3 credits, a "Medium" is 2, and a "Low" is 1, The average grade works out to 3.77 - a strong A-. How do we arrive at a C?

No sense whatsoever!

Reply by
nineislands

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Even if you're doing great in all of the categories, CK doesn't use those grades to calculate your overall grade. To use a school analogy, your individual grades might be the grades you received in different classes during a semester. But your overall grade is from that online class you took from Harvard Extension School. Your score in that class was lower than all of those smarties, so your overall grade ends up as a C and has absolutely nothing to do with your performance at your current college. 

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Grades, where are they?

Where can I go to find the grading system. Looks like they replaced it with commercials

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Percentages man, percentages!

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My take: As some of the grades are worth more than others having a B in something worth say 30% and an A in something worth only 10-15% can lower the overall grade. SO if you have B's in three categories that weigh heavily and 3 A's in less heavy categories, the average of all 6 could very well be a C.

Either that or it's just an error...

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