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Posted in Credit Report
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Question By
jfpwatson

4 Contributions
2 People Helped
Credit reporting is a scam!
I had a home equity line of credit for 10 years with PERFECT payment history. The line of credit was closed by the bank per the agreement (after 120 months). I re-applied and opened a new line of credit with the same lender for the same credit line. In the meantime, I paid all other accounts on time, opened no new accounts, and closed no old accounts. ...yet my credit score dropped 15 points in 4 months!!! What a scam!
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Most Helpful Response

Credit Karma is a business!

Helpful to 72 out of 76 people

Credit karma makes its money off of the credit offers and other services it provides on its website.  The idea is to show a reduced credit score to entice a consumer to apply for one of their affilates credit card offers or services to repair their credit whether it needs it or not.  I relied on Credit Karma for a few months before I got my free annual credit report, I found out that the scores that are supposed to be based on a transuniion credit report are incorrect.  My actual credit scores ranged from 50 to 90 points higher on my actual credit report tan the score given by credit karma.  When asked to explain the difference I was referred to a forum where other people in my situation were discussing the score difference.  They are a for profit business that is looking to make a profit from consumers that are not willing to pay for a real credit score or who do not know that they can get a free credit report from the government.  Be aware the the free annual credit report DOES NOT INCLUDE A CREDIT SCORE.  YOU HAVE TO PAY TO GET A CREDIT SCORE.  The cost for all three credit scores is around $35-$40, a score from one is $15. 

4 Contributions
31 People Helped

Home Equity Line

Helpful to 7 out of 8 people

Apparently you arent versed in the lines of credit and how they affect your score.  When a Lender closes an account it has a negative impact on you whether or not your payment history is good.  NEVER let a Lender close an account!

Consumer Debt Center

Cleveland, OH

1 Contribution
16 People Helped

Helpful to 16 out of 20 people

As soon as you closed your 10 year old perfect home equity credit line it became OLD credit and not a current open credit line. If that was your oldest credit then your score dropped because the length of your credit history was then dropped to the next oldest account. It also lowered the number of positive open accounts you had which would also drop your score.

1 Contribution
4 People Helped

Can't say for sure but....

Helpful to 4 out of 4 people

I have an uneasy feeling about the motive of Credit Karma...

My credit score showed an excelent score , yet when I tried to change my mobile carrier from ATT to T MOBILE , I was told by TMOBILE that my credit score was such that I needed to pay an additional deposit if I wanted to open the account with them....

1 Contribution
14 People Helped

Helpful to 14 out of 17 people

my score dropped 47 points after paying off a student loan for 3000 on credit karma. How does paying off something drop your score and I have not had any inquires on my report. I don.t think they are accurate 

3 Contributions
14 People Helped

Govt Doesn't Recognize Credit Karma

Helpful to 8 out of 10 people

the US govt only recommends  www.annualcreditreport.com  not Credit Karma! 

1 Contribution
6 People Helped

Helpful to 6 out of 7 people

I was going to register until i read the crap about it dropping my score for one full year.  Guess nothing is really FREE!

Top Contributor
327 Contributions
83 People Helped

Helpful to 14 out of 16 people

Welcome to the magic of credit scoring. Amen.

Credit scoring has nothing to do with income or wealth or assets. It is all about debt, paying debt back and going back into debt. It really is a silly game to maintain the bank's profits.

1 Contribution
2 People Helped

protect

Helpful to 2 out of 2 people

What dose Karma do to protect my iformmation like my ss#

1 Contribution
4 People Helped

Helpful to 4 out of 5 people

registering for CreditKarma is NOT a hard inquiry and will not change your score

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