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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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1 Contribution
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Most Helpful Response

Credit Karma is a business!

Helpful to 73 out of 78 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
8 People Helped
Helpful to 8 out of 8 people

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

God bless, 

Top Contributor

Reply by
rmkinghorn

21 Contributions
97 People Helped
Helpful to 14 out of 18 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.

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.

Reply by
anginfla

4 Contributions
31 People Helped
Helpful to 7 out of 9 people

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

Consumer Debt Center

Cleveland, OH

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