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Question

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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1 Contribution
68 People Helped
Most Helpful Response

Credit Karma is a business!

Helpful to 68 out of 71 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. 

Reply by
VALMARCELIN

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

This is so true, thanks for the info :-) 

God bless, 

Top Contributor

Reply by
rmkinghorn

21 Contributions
96 People Helped
Helpful to 14 out of 17 people

Well said. Just like Nike, Walmart, or Mcdonald's CreditKarma provides a great service, and is also a for profit business.

The same goes for Transunion, Equifax, and Experian. They are simply businesses.

Reply by
sndman6986

2 Contributions
0 People Helped

Thank you...you have just confirmed just about every thing I felt was going on.

4 Contributions
29 People Helped

Home Equity Line

Helpful to 6 out of 6 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.

Reply by
anginfla

4 Contributions
29 People Helped
Helpful to 7 out of 8 people

Thats not the only reason.  The main factor there is the fact that the LENDER closed the account.

Consumer Debt Center

Cleveland, OH

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....

Top Contributor

Reply by
EddyTX

1032 Contributions
2653 People Helped
Helpful to 3 out of 3 people

Did you ask what score they used? 

Often phone companies never even check credit scores. If they did you would have the option to get a free copy of your report, and they would have to give that to you in writing. 

1 Contribution
14 People Helped

Helpful to 14 out of 16 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 

Reply by
anginfla

4 Contributions
29 People Helped
Helpful to 8 out of 8 people

It changes the variety of accounts that you have on your bureau.  One of the major factors in determining your score is the variety of accounts that you have.  You should always have a revolving, an installment and either a mortgage or equity line.  That along with your balances and payment history are what make up the risk assessment in calculating your score.

Consumer Debt Center

Cleveland, OH

3 Contributions
11 People Helped

Govt Doesn't Recognize Credit Karma

Helpful to 6 out of 8 people

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

Top Contributor
327 Contributions
82 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.

Reply by
anginfla

4 Contributions
29 People Helped
Helpful to 8 out of 10 people

That also is not true.  Your debt to income ratio and the utilization rate on the cards make up a significant portion of your risk assessment.  So the amount of money you make in connection with the amount of debt you have or can have plays a very big role.

Consumer Debt Center

Cleveland, OH

Reply by
7CJbW

1 Contribution
7 People Helped
Helpful to 7 out of 10 people

Since credit scores do not have anything to do with income or assets, I find it INCREDIBLE that people will make business decisions on information that is dubious.

I wanted to increase my credit limit with my American Express card and they said not unless I provided a copy of my TAX return.  I DON"T THINK so.  They are the looser because I use othre cards that provide cash rebates and the DO NOT receive the transaction fees. 

None of the credit card companies derive interest since each account is paid in time to avoid rates that I consider bordering on EXTORTION!

If I'm going to work with someone that wants to abuse me using information based on a credit score, I'll do business with someone else.

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
5 People Helped

Helpful to 5 out of 6 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!

Reply by
Quinn33

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

Im glad I read these posts before giving my ss# to this scam site.

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

Reply by
shaggy1418

1 Contribution
7 People Helped
Helpful to 7 out of 10 people

my credit score was 782 then went to756  had no change in my accts.then in three months it went to 568 and had no change all good credit it was lost and taken off by credit karma and a seven year old credit card rewards 660  all good credit was taken off the bad one seven years old left on thats wrong this compenty is a rip off 

Reply by
rtposcpdny3167

1 Contribution
2 People Helped
Helpful to 2 out of 3 people

Credit Karma only reports what is in your Trans Union Credit

File.  You should contact Trans Union.  The old good credit could have been removed because it was no longer being reported by the credit grantors, or you may have had some negative items which turned seven years old and had to be removed.  the rewards 660 is a credit card offered to people with credit problems.  The seven years a late payment stays on your report is from the date of the late payment, it does not matter how old the account is.  

Reply by
edpine3

1 Contribution
1 Person Helped
Helpful to 1 out of 7 people

Why don't you learn how to write a sentence?

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