Credit Advice

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Question By
JMSchweitzer

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credit scores vs credit karma scores
I have the following credit scores as of 8/19/14
equifax 670
transunion 673
experian 688
credit karma 610
why are you so much lower than all the credit bureaus? You say your scores are based on transunions creidit report but their score is so much higher than what you have for me.

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VP Consumer Lending

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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.

Reply by
ClippersNation

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OK, I get it that there are different models, etc. If Vantage is only using information from the three credit bureaus, wouldn't the score look something like the average, or at worst, be the same as the lowest of the the three bureaus? My scores are "excellent" "excellent" and "good" for the three bureaus, yet my Vantage score is a "C." This looks fishy and I have to say, seems like CK is trying to convince me that my credit is worse than it is in order to market higher interest credit cards and/or other services.

Reply by
wonderingWV

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So my question is simply this---should you pay off cc if possible? Or keep a small balance to pay on time monthly?  Which is better to up UR score? As I am getting to the point of not knowing which is best. Thanks ahead for a reply.

wonderingWV

Reply by
allmankind

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So what your telling me is that my credit worthiness is based on a bunch of models that no one yet agrees on yet.  I kind of already knew this.  I have 18 years of perfect credit, not a single missed payment, and I have a mortgage and an equity loan yet because no one agrees on what model is the true model I am not allowed to have a perfect credit rating which in my opinion and I am sure others is quite ****ed up.  It's a no wonder these lending institutions screwed us on sub prime loans and needed guys like me to bail them out.  

Reply by
dbs1962

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Dec 2014 CK had me as a 708. When Barclays pulled my score from Trans Union to increase my limit Trans Union was a 751. Go figure.

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Reply by
takeshi74

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allmankind:  Your issue your scores isn't the different scoring models.  If the different scoring models aren't rating you as perfect then the issue is with the data in your reports.  All scoring models use data in one of the 3 reports to generate a score.

The models may differ in how the evaluate the data but there's not such a drastic difference that one would, for example, have an 850 with one model and a 500 with another model.

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Reply by
kimlovesfl

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And no one will ever know their true scores if ALL financial institutions don't ALL start using the same scoring model. It shouldn't be one score from bank A, another score from bank B, a different score if you want  to buy a car, a 4th score if you want to buy a house, and yet ANOTHER score if you want to get a credit card. It's all a scam that we have no choice but to follow, and there seriously needs to be some federal regulation regarding this. When you apply for credit of any sort, your score shouldn't be a surprise to you. A consumer should be able to see exactly the same score any lending institution sees, and ALL lending institutions should see the same score.

I saw someone once describe this as colleges getting a different SAT score than a student does. It's totally f***ed up and needs to change.

Reply by
Whatthefreak

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I too am  upset over all the different credit scores. There's as much h as 100+ points difference.  I had a write off but two credit bureaus added it to my total debt and one didn't because they chose to the right thing. I had to go after that bureau in writng and I even used their own credit counselor of 30 years blog post. People aren't a number and what's on paper doesn't necessary reflect what is truly there. There's no standard for everyone and it's utter chaos but the consumer gets hit the worst. We need reguations on credit reporting as it's a disaster right now. I see the same sentiment by most everyone here. The write off I talked about is 7+ years old but the regulations on reporting a charge off/write off conflict. The bureaus pick a date and keep the negative. I'm not some kind of rotten irresponsible person but the bureaus can make you look like it.

Reply by
photcred

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And now here is the BS of not having medical bills and collections in some scores.  So NEW models again, and a lending force now more wary of whether you are  deadbeat hiding something.

THAT will help stimulate the economy and help people!!

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Reply by
asharples1

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Replying to "WonderingWV"...

I just learned this, and I'm 39...  The old suggestion, "in order to build credit, put everything on a credit card, but just pay it off every month and avoid interest" is wrong.  You have to think of every aspect of credit and loans and lending and the financial trap that all lenders and even the government want you to be in.  What good are you to a credit offering agency if you don't pay them interest? 

I have been running up monthly credit card bills of anywhere between $2K and $3K, but paying off the entire balance monthly.  I just found out that this actually hurts your credit score.  Probably not by much, but it definietly won't help it. 

You must carry a balance in order to have your credit card benfit your score.  Interest pretty much destroys any of these stupid 1% cash back deals, so aim for paying off all but $20 - $50 on your account.  This dings the system and the lenders start to salivate at the possibility of making you dependent to the machine.  Your score will improve and next thing you know, you'll be able to qualfy for a loan that will pay their salary for a decade.  Bad credit scores are intended for people that are risky because they may default and useless because they won't pay big interest. 

Reply by
jmrgn1011

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That makes perfect sense however one of my close friends recently was tracking his credit with Credit Karma his score showed his score around 570.  He decided to get a small auto loan to help improve his credit.  The auto Dealership pulled his credit and his score was mid 700s with Transunion.  Also there is a 50+ historical point difference between Credit Karma & Transunion  Credit Karma being lower.

Reply by
jackieblue43

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AMEN kimlovesfl!!!!!  I have said the same thing for at least two years and been aware of the scam it is for even longer.

4 years ago, I was given what is called a double mortgage (meaning a mortgage for a home in town while still holding the loan on a home outside of town) while also have a car note.  I had the second home and car leased out and only had to show "proof" as such.  Credit score was 646, income total was total temporary disability of $1604 and child support of 436.

Four years later with income of 1447, and no one will say yes to 3 different types and amounts asked for stating debt to income ratio blah blah blah. 

Well, F.U. people!!  I managed to live a pretty decent existence on said income WITHOUT government assistance, etc, etc so you can **** well bet I will continue that way.  I stopped your credit and interest rates "game" the second I woke up to the mistake of paying for vehicles of any kind and now only buy what I can afford for cash for the main thing.

Reply by
workworkwork1

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I agree with kimlovesfl...its the most f'd up system. I get approved for a mortgage, but not directv? ? Wtf? There is absolutely no rhyme or reason to credit scores. Yep, you can get a $200k mortgage but not $1000 a year cable tv. Totally ridiculous.

Reply by
justibj

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credit scores are all a load of complete and utter nonsense. Why is my transunion score 112 points lower than my equifax score? Is one using my credit history from the planet jupiter and another using my credit history from the planet earth?

A load of complete and utter horse manure is about the only way to really describe the so-called "credit scoring" system in this country. It's meant and designed to keep people in debt, keep paying absurd interest rates, so that the rich get richer, the poor get poorer and the middle class goes to he**. We need some serious bank regulation in this country, and some serious butt kicking of the credit industry.

Reply by
Danzi3693

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I believe the credit reporting agencies along with companies such as Credit Karma are deceitful and brilliant at double talk as well as talking in circles to confuse the matters even more. I have been in the financial services market for over seven years and the more investigating I do the more bull manure I seem to find. The credit scoring systems and the means by which you derive the scores is made confusing for one and one reason only, to confuse the consumer and try to trick them into spending more money to get the real answers. That is wrong and we as consumers deserve clear cut, consise information to monitor our credit history and current credit information. enough of your four page models to try and explain something that can be asertained in one paragraph. Do the right thing and make the necessary chances.

Reply by
fosterskis

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Good details but not sure if that is the case.  Up till a few months ago all my credit scores were almost identical from Tansunion and Equifax from 2 credit card companies that now offer the FICO scores for free and on creditkarma and have never missed a payment and a long history etc so never below a good rating over 700+.  Now on Creditkarma they are saying my scores from 2 creditbureaus are 4 and 4.4% lower and rating as a fair credit rating.  Now I know that is not true and my own bank gave me an unsecured loan 5 years for under 10% as current evidence.  If you look closer the creditkarma website you will notice the have recently knocked downward the rating buckets to know done your score.  Also I once tried one of their recomended offers one month before I got the loan mentioned above and the offer offered me a $2,000 credit card at 22%.  Even in this low interest environment.  My highest credit card rate is 13.99% and line on it is 15 times more than that offer.  We know the site is free and is paid but these offers being accepted and also their private backers of this private firm  like Prosper is sending you offers without disclosing the fact they got your information from their Partner CreditKarma.  I was also shocked that an offer I saw somewhere on the site has interest rates up to 36%. REALLY.

So fortunately there are others sites like your bank and credit cards companies that will give you a representative FICO score for free and also the 3 credit bureaus will give you one free copy of your credit file information annually to review and dispute any information that may be incorrect.

So do not dispair if things on this site does not appear accurate as it could be better than it is being portrayed as they are a company to grow profits so they can go IPO.  To date they do not have a customer service line to assist you or handle complaints other than you emailing customer supports and they will try to get back to you within days or a week.

Reply by
ICU4URme

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IT"S BUNK!!!  For example, if I'm shopping for a mortgage I am FORCED to do the shopping within 14days, else the next mortgage company's inquiry to my report counts as another hard hit.  If I apply to nothing else but one mortgage company once a month it "dings" my credit each time.  WHAT!!!  I would have done nothing wrong, nothing "bad credit" worthy, etc..  I would have just taken my time and been careful and for that this "credit system" would penalize me.  As Hillary Clinton said ala Bengazi, "What difference does it make?".  It's all about what they can dream up with no material differential.  It's all BULL !

Reply by
Cmisbcry

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While I hear and believe what you are saying, and after checking my CK scores against actual Bureau, Credit tracker scores on credit cards, and all were supposedly updated within this month,; not only have they all get different scores, they all are showing different creditors/balances on my reports.  for example I have 3 credit cards, 2 recently paid in full bal. and 1 I owe 200/300cl.  A mortgage w/ low interest rate 4.22%, pmts. 224.00 mo., car paid off, and a small personal loan I took out to increase scores $1080. New , only 2/ 90.00 payments made.  Yet instead of increasing scores, my CK scores dropped more than 100 pts,credit traker by 40 pts. And the bureaus by 30+.

NO MISSED OR LATES ON ANY ACCOUNTS!  what is going on for petes sake?

Reply by
Cmisbcry

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I thought the FICO score system was great...  why is this new VANTAGE 3.0 system so different?  for one, we never had to figure out the FICO!  it was what is was.  a SIMPLE scoring system...  Now all 3 bureau's differ greatly in scores I don't understand why!  But the more I pay off, the lower my scores go.  And my longest mtg. acct, doesn't seem to matter. 9 accts. total.  4 active, w/ no missed/late pays. 5 paid off including car loan, never late, yet my scores dropped near 100 pts per bureau.

Last month, my scores ranged from 627 - 697 respectively.  I paid off 2 credit cards/ personal loan and my scores dropped 100 pts each..  WHY?  I don't get it

Reply by
tintent

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what u fail to say and tell is that the scores here on creditkarma all most allways slected to be much lower then the three Experian, Equifax and Trans Union. and why many here scores drop from the sky 100 points over night. creditkarma says my scores r both transunuion and Equifax or both 496 lol sorry way off and much lower. my real scores r above 600 at both. i know the real reason why this is often the case here with many other folks. 

Reply by
jgdwvu11

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This reponse(VP Consumer lending) is very good and helpful to the average banker but not to the general public.  My job is help people get their scores higher so they can get a mortgage loan from us.  KC uses Vantage 3  which is still in the TRIAL phase of scoring and may not even be implemented.  KC also does not have up-to-date reporting---therefore their scores WILL NEVER be correct....you pay for what you get- this is a free site.  This is also a SPONSOR funded site!!!  That means that all these SO CALLED credit repair companies are going to HELP you with your poor credit...Vantage 3 and 2 confuse everyone when most banks are using FICO 8 or all transactions!  I will break down what needs to be done to help your scores! 1) NEVER GO TO A CREDIT REPAIR COMPANY!  They are a ripoff!  They charge you money to do things that you can do yourself on annualcreditreport.com.  They CAN'T remove ANYTHING that is TRUE!!!!!  That is the scam....they drag you on for months so they can collect your $100 per month.  You can get online and go through your entire life of credit in a half hour and dispute all issues that are reported incorrectly!   2)  Credit scoring has changed big time over the last 3 years.  NOW you need to show you can manage debt!!!!  You need open accounts and high limits with low balances!!!!  This represents 30% of your overall score!  You need to prove you can have access to debt, manage the debt, and pay on time for a lengthy period of time!  It is that simple!  DO NOT close accounts! DO not be late!  Very simple. I could go in more detail but I am a little busy right now so sorry for any grammar or spelling issues.  If you want help you can email my personal account at ********.

Reply by
2cbb55

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My credit scores on Credt Karma are signifcantly lower than on the 3 major credit bureaus.  And companies use these scores to grant credit, then why would I ever use Credit Karma for my scores?  I was nervous about my scores posted on Credit Karma.  They have gone down significantly for the past few months, even though I have not had any charges or changes in my credit.  Once I got pre-approved for a new mortgage loan, I was relieved to see that my "real" credit scores were well over 60 points higher than Credit Karma posts.  So to me Credit Karma is pretty much worthless.

Reply by
Brown7385

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I think CK does want to market high interest Credit Cards by making you think your credit is worse than it really is.  My mid score was 30 pts higher when I went to prequal for a home loan and actually qualified.  Maybe its free because they are getting paid by these CC companies in other ways (Commission)  !!  How can any scoring model be that far off, a few points maybe but 30?  Luckily I decided to go for it anyway !!!

Reply by
GoldenRoses

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Well, creditmyth.., "iIsn't THAT Special. You explained absoulty nothing. People like me, have bills, credit, which we pay ON TIME & over the minimum. What is this FICO score, and WHY does "Credit Karma" rate it 40 points lower? Oh, right, this NEW Vantage score.

Who came. up with that one? Wall Street? 

All the 1% of the wealthist have NO errors, on THEIR credit reports, are offered hundereds of thousands of credit- but the average person is having a very hard time with the interest rates, and not being able to get credit, even though their credit is good! Explain that again, please!

Reply by
ZxKobra

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Here is how they figure your score using different models.

According to my research:

Vantage Score scale from 501 to 990

32% Payment History

23% Credit Utilization

15% Credit Balances

13% Depth of Credit

10% Recent Credit

7% Available Credit

Vantage 3.0 scale from 300 to 850

30% Recent Credit

28% Payment History

23% Percent Of Credit Used

9% Total Balance Ratio

9% Depth Of Credit

1% Available Credit

FICO Score scale from 300 to 850

35%: Payment History

30%: Credit Utilization (debt-to-credit ratios)

15%: Length of Credit History 

10%: Types of credit used (installment, revolving, consumer finance, mortgage)

10%: Recent searches for credit (Credit inquiries)

800+ =  Exceptional

740-799 =  Dependable

670-739 =  Average (Good)

580-669 =  Not Good

579 or Less = Awful

As you can see the Vantage 3.0 score puts a lot more importance on recent credit than Fico does. At this time it is more important to focus on the Fico model as more creditors use it.

Reply by
nine9times

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Based on what i've seen on CK when comparing these scores to the scores released to me using the "free week trial" from the big three credit rating agnecies, there is virtually no comparison between the data here and the data from the agencies, they are orders of magnitude different, making CK a very unreliable analog in my case. I think that moving forward if i need my credit score I'll just pay the $1.00 or $4.95 every calendar year and get the actual scores than sit here and wonder if CK is even close to correct.

CK is less a consumer service and more a marketing plaform for creditcard companies masquerading as an information service.

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Reply by
jan731

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Enter Your ReplyI know this is an old post but, this is where I was taken, so what gives I have an excellent payment history but my score dropped 75 points because I  use the credit cards that I have, you don't get rewarded for excellent payment or my score wouldn't have dropped that many points, they like to drop you anyway they can that way they all get to suck more interest out of you, I am paying off all my cards, cutting them up and I will do cash, no debt, no high interest because I am sick of playing this credit game

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Reply by
JoulesMSU

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Wow, there is a lot of really bad advice being thrown around here. Especially from asharples1 - telling people it is better to pay interest. That's not true at all.

Credit card companies make money every time you use the card. That is why they offer 0% interest or cash back rewards. They are trying to entice you to use their card instead of someone else's card.

The more you put on that card, the more they make. If you wind up paying interest, that is a bonus for them, but really they mostly just expect to get a percentage of each transaction. If you are putting $1000/month on the card, you're still earning them $15-$20/month, which if you consider how many people are using their cards, that adds up to quite a bit. So they are more than happy to have you pay off your balance each month... as long as you keep using the card.

Also, for credit scores, the card is reported as having whatever the balance of the last statement was. So if you do pay it off every month (as you should), if you are using it, then it will always show that you have a balance on the card. It will never look like you aren't using it just because you are paying it off. The only way it would look like you are not using it would be if you actually are not using it and have a $0 balance that month.

Reply by
ptcpaul01

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Then riddle me this, TU 735 EXP 770 FICO 686, checked into car loan score 686 check into mortgage 686, only ding is 2 yr credit history this has been a consistent for over a year, FICO is never close to CK numbers. Its a BS system set up to squeeze as much money from us in interest as possible, read the posts many have what most would consider at least close to perfect yet it can not be achieved. Your last sentence does not ring true sorry TU EXP both go up 30-40 points FICO doesn't budge not one point

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Reply by
gixxer555

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I am one of those ones that CK has a higher score than the creditors do and this can be very misleading....CK suggests credit cards I should consider applying based on approval odds...I understand there is no quarantee I will get approved but when CK says that I have an excellent chance or even a very good chance I take that at face instead of applying when there is a good or fair chance I wait til it is very good or excellent to be on the safe side but I was still denied when my CK score was 706 for the lowest card offered so I don't trust CK's scores for me anymore...because of applying the the suggested cards I now have too many inquiries on my report.

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Reply by
RichardBBB123

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Great information, thanks for sharing.  It was explained the same way to me a few days ago when I discussed refinancing my mortgage through my bank.  Even though my Visa was reporting a score of 701 and Discover displayed 709 (both monthly scores provided free) and Credit Karma was 740 for both of my scores, my credit scores for the mortgage refi were 725, 746 and 752.  Very happy they go with the middle score because the 746 qualified me for the best score possible.

My suggestion with Credit Karma is to think of it as a monitoring service with access to your profiles.  The scores are nice but an add-on.  For example, wheh the mortgage loan officer ran my credit, I got a notice on my iPhone from Credit Karma that there was credit activity on my account.  Considering CK is free, I'm pretty happy with that.

Reply by
Lucky1Again

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I found this to be true when I needed a newer car. I had been working with buy here pay here dealers and was disgusted with their high intrest rates of 12-14%. on suggestion I went to a mainstream dealer knowing my Credit Karma scores were not the best at 630 and poor. They were able to help and my score was actually 690 and good when they pulled the scores. I too was confused but wasnt going to look a gift horse in the mouth. I am driving my used car with 38,000 miles with a decent payment the I can afford and a so so intrest rate of 9.59 %. a bit high, but sure beats 12-14%. I am very happy with Credit Karma and would encourage everyone to continue with them.

Reply by
Sailwolf35

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As usual, a response of essentially "word salad", marginally palatable but nutritionally worthless! I have found that generally CK is a day late and almost always a timely score short!

Bottom line is, even if the "service" is free, it should still be reasonably accurate and representative of a timely reality! If that's not the case perhaps it should cease to exist.

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Reply by
CourtFraudVictim

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I get the chaos.  Who needs to be fired in order to repair it?  I'm sick and tired of BS excuses as to why "the numbers are all over the place".  Who's responsible?  Probably that smug, smirking SHILLARY.   And why, after being forced into bankruptcy by DOCUMENTED judicial fraud protected by another con game entitled, "Absolute immunity" that protects judicial criminals from criminal prosecution does the entire credit scioring system suffer from ALZHEIMER'S DISEASE?  Apparently my 22+ years of stellar creditworthiness before being a crime victim is forgotten. It's all BS.  Welcome to America.  Now run and led by foreigners possessing foreign vested interests.  We, the people, are We, the disposable batteries.  I think I have to now wait 10 years to re-gain an "excellent" credit account history.  I'll be 66.  Thanks axxhioles.  Who need to be fired for this crap?  Any names?

Reply by
dryadsmoon

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Thank You Credit Karma for helping me to restore my credit. I have good credit now. I did not see any difference between credit karma scores and other scores. Credit Karma was spot on with my scores.

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RIP Off For Capital One and Advertiser

Helpful to 613 out of 770 people

I am really thinking the that difference in all the scores is a CREDIT KARMA RIP! They are just pushing us to think our credit is even worse then it is so we will take up more of their Capital One cards, and Barkley, and the rest of these ADVERTISERS... And if like me you pay off the cards too quickly, or don't use them at all, credit karma pulls your points! And if you use 30% they pull your points, and if you don't use them at all, CREDIT KARMA PULLS YOUR POINTS BIG TIME! My points with credit karma are 50 points different then the REAL numbers with the real credit bureaus. I hired Privacy Guard to find out what was really out there... And now am more sure then every that Credit Karma is out to line their own pockets by us using their referrals! KICKBACKS are ILLEGAL in most places... But this is oen that works... These companies pay for ADVERTISING, rather then admitting they are paying KICKBACKS!  USE CREDIT KARMA as a TOOL, not as the ONLY TOOL, but one in your tool bag!

Reply by
Momof4military

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Originally I went with Lexington Law due to the recomendation here for me. Yeah right.....a couple thousand dollars later they've done next to nothing. I improved my score myself with simple google searches on how to improve my score as well as talking with the loan office at my bank as well as a couple other financial institutions. 

Any site that is free to use has to get paid somehow. The advertisers such as Lexington Law and Rise Credit (another one to stay away from as I paid over $6,000 interest on a $2,000 loan) are recomended because they pay to be. Although Rise Credit does report in so it does help build your credit. So does Fingerhut though and you can buy something real cheap and make payments on it and it will still show a credit history without getting gauged.

Reply by
Goodlistener1

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That sounds like a good answer. Fact being I have been working on my credit reports, some possitive reports from the credit bureaus, but my credit score seems to be lowering according to credit karma, and they are trying to get me to use certain credit repair companies. The only possible thing I get by listening to you is my credit scores may be even higher from the real credit bureaus. Also they are promoting credit card companies, one being Capital One, which I had prior to repairing my credit. All my advice has come from a veterans consultent free of charge, and i've been doing pretty good for free. My consultent has been walking me through it, and it seems to be working. I do appreciate your thoughts on the matter. and it sounds good. Thank for your input and advise.

Reply by
salnet1967

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Yes !!! I agree totally ! I applied for a credit card threw capital one and it lowered my score !!! Uggggggh !!! Never again

Reply by
MasterGodEmperor

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MooseVacation seems typical of Conspiracy Theorists. 

Newsflash: JFK was killed by one man's freakishly good aim. Pres. Ford had at least two attempts made on his life, but noone remembers because they failed.

Reply by
allthemoney2014

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You're an idiot. Stop bit*hing of you don't the free services well just leave. No one is forcing you to stick around. Credit karma has been a huge help for me and many of my friends and clients. We love and are extremely satisfied with credit karma.

Reply by
powercat1994

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I agree totally......

Reply by
mhoncho69

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My Capitol one credit tracker on 2 differenet capitol one cards are lower than my creidt Karma so not sure why yours is opposite and for a while they used to match evenly.

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Reply by
DjFourmoney

10 Contributions
183 People Helped

 You are suppose to use your cards, why would a credit card company reward you? ZERO balance looks like you don't use the card. I have $0 balance but only after the statement was recorded. 

 Credit Card Companies make money a few ways. One of them is frequent use, they make money on fees. The others are interest for those dumb enough to carry a balance and finally late fees and other charges.

 So if you don't use it and when you do,you pay it off, your score won't go up much. But if you use it like a cash loan, then you'll get more of an increase.

 I agree CK is a tool, my actual TU are higher on actual pull. 

Reply by
oregonartguy

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Helpful to 5 out of 5 people

I have exactly the opposite problem - I got a Transunion credit report from my Credit Union and my score was 666

Credit Karma - 702

Obviously not very helpful when I look for a credit card or loan when it's THAT far off! Thank you you very little Credit Karma

Reply by
AustinRose777

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Look I've been using Credit Karma way before they had all these ads for services and credit cards. They are still the same. It's a great tool. You don't have to use it if you don't like it.... I had no credit at 42yrs of age and it was great watching it come to life on this site. And it made me feel more comfortable knowing I could see what others pay for.

I say If the score is better than what Credit Karma says then great! That's better than it being worse...

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Reply by
takeshi74

988 Contributions
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Research on any matter is the responsbility of the individual.  If you're arbitrarily relying on one source -- whether it's CK or anything else -- without doing proper research then the issue isn't that your one source is a rip.  The issue is your poor due diligence.

You cannot rely on one scoring model to determine the score generated by an entirely different model.  You should expect different algorithms to produce different results.  Most creditors use acutal FICO's in their credit decisions.

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Reply by
SonnyHoney54

48 Contributions
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It called a referral fee sir..... not a kick back.  They are giving you several types of credit scores for fee. You should not bite the hand that feeds you.  If you’re not happy.... drop the service.  Let’s keep things constructive.

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Reply by
Floridabiker777

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I don't normally use any recommendations that they give.  Go shopping for your own cards.  There are some good deals out there.  A lot with 0% for 18 months.  If you have balances, this would help.  And they give some great rewards.  I went ahead & got several before Xmas and actually got many rewards.  Still have gift cards left that I haven't used.  Best rule of thumb.  Get them paid in full.  Use only what you know you can pay in full each month if there is an apr.  If you need to buy something on credit, try and get a deal like the 0% for 18 months or a 12 months same as cash.  Just did that with some household items.  I never noticed Credit Karma lowering my points for paying my cards.  But I did notice a big diference in having high limits utilized below 10%, & miixed credit.  That seemed to raise my score the fastest.  Mine took a big drop from the inquiries & the new cc's with decent limits.  I treat it like a game.  Don't let it over whelm you.  You're right, go to several sites & check your scores.  There a a few freebies out there.  

Reply by
maebellrose

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My credit scores with Credit Karma are 801 from Transunion and  813 from Equfax...everyone is saying there scores are lower with this company and if that is the case I must have the most perfect credit ever!...I was just wanting to know if these scores are right, higher than they really are, or lower...I can't see them being lower if everyone is already saying that their are lower...hmmm...whatever the case, I am very proud of myself...

Reply by
cblack412

7 Contributions
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Credit Karma is not going to be accurate because of the delay in data transmission. That is one of the reasons that different sites have different scores. They all need to play catchup on the reporting.

It is a good tool to get a round about idea of where you stand credit-wise but never something you can take to the bank...literally.

Reply by
Jerrymiah73

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Credit Karma never said their score is the most correct or most current. They do clearly say that it is a Vantage score 3.0. When viewing my score with Credit Karma, I know that it is not exact like FICO. But at least I know that it is somewhat in the vicinity of the FICO score. I like crediti karma because they show credit report and score (vantage) for FREE!!!!!!!!!!

Reply by
JLinn003

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Last year, because Credit Karma suggested that I apply for a credit card with Barklays, I did, and was declined.  My FICO is higher than what Credit Karma says it is (they say 720), but still, I was declined when I was told that my chances for getting the card to consolidate another credit card balance was "Very Good".  Then when they added Equifax back in, I noticed that a tax lien that was cleared on one reporting agency still exists in another, even though the amount of the lien is more than double what I currently owe the IRS on an automatic debit installment agreement.  And on top of that, the failed attempt at a credit card caused another hard inquiry.  Now, I just pay my loans on time and pay much higher than the minimum payments to pay my credit cards down to ZERO.  And if Credit Karma wants to dock me for not carrying ANY credit card balance from month to month, or not having enough open credit accounts, then so be it.

Reply by
tintent

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I am really thinking the that difference in all the scores is a CREDIT KARMA RIP! They are just pushing us to think our credit is even worse then it is so we will take up more of their Capital One cards, and Barkley, and the rest of these ADVERTISERS... And if like me you pay off the cards too quickly, or don't use them at all, credit karma pulls your points! And if you use 30% they pull your points, and if you don't use them at all, CREDIT KARMA PULLS YOUR POINTS BIG TIME! My points with credit karma are 50 points different then the REAL numbers with the real credit bureaus. I hired Privacy Guard to find out what was really out there... And now am more sure then every that Credit Karma is out to line their own pockets by us using their referrals! KICKBACKS are ILLEGAL in most places... But this is oen that works... These companies pay for ADVERTISING, rather then admitting they are paying KICKBACKS!  USE CREDIT KARMA as a TOOL, not as the ONLY TOOL, but one in your tool bag! YES YES YES THIS THE REAL REASON> 

Reply by
jdoudrick

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I agree.

Experian 688

Transunion 676, Credit karma transunion 630

Equifax 714, Credit Karma Equifax 636!!

Before they were accurate, now they just want you to file bankruptcy or get one of thier third rate credit cards!

The site is useless now.

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Reply by
dpk1nba

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Holly Crap...You and every one who responded in agreement to your comment are complete idiots. Credit Karma is not screwing up YOUR credit score YOU are. The advertisers on this website are just that. Advertisers. They are all here to sell you something and are not cohorts of Credit Karma. Just because YOU are dumb to enough to select and purchase a sevice from an advertiser on this site without doing any research on that company YOU selected does not make Credit Karma a scam. Get a clue. 

Reply by
whataracket

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your dead right !!!!!!!!!!!!!!!!!

Reply by
dsoma22

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Enter Your ReplyI don't understand everyone is saying Credit Karma understates your credit score.  They are sitting here telling me mine is 724 I apply for a loan and wonder why I'm not getting the best rates and it's because Credit Karma is overstating my score.  Apparent;y I'm only 687 which is very frustrating when using it all along to know when I was ready.

Reply by
BreatheEz

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What I've found from experience is that ANY Capital One cards hurt your credit. I've been told numerous times that Cap One is basically like a sub prime lender, and anyone looking at a CC that is Capital One is flagged as having questionable or volatile credit. I finally got rid of that crappy high interest company and just went through my credit union for a CC and it has raised my score significantly as well as opened more doors for other loans. Some say it doesn't matter, but I'm telling you, Captial One credit cards are a sham. Get rid of that crap!

Reply by
JudieL

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I could not agree more with your theory. When I registered with Credit Karma in October, my TransUnion score was 801 and Equifax 795. I've always paid off my credit cards each month and am religious in monitoring my free yearly credit report each year.

Yet each time I look at my Credit Karma scores they get lower and lower and even lower. As of today my TransUnion is 744 (a drop of 57 points!) and Equifax 788. When I purchased my new car November 2014, the dealer pulled my credit score from Experian and SHOWED me - on paper - that my credit score was 834. 

I really think you're on to something in that Credit Karma's primary goal is to get you to sign up for credit cards and other services to "help" your credit. 

Reply by
shadowsbane0

5 Contributions
2 People Helped

I am suspecting the same. I looked at the "recommendations" for me and they were all extremely bad financial choices for a person to make. Years ago when I didn't have the wisdom of bad experience, I might have listened. Choice one was to file for bankruptcy. Really? I have about $1500 a month of discresionary funds available that I'm using to pay off debt. Why would I ask someone else to bail me out of my own mess? Choices two and three were equally bad. I have two auto loans. One has 17 months remaining and the other 36. CKs recommendation was to refinance them for 72  months to lower my payments. What an excellent idea if you want keep paying on a vehicle that is no longer worth anywhere near what you owe AND put a lot of extra cash in the creditors pocket. It certainly isn't a sound credit option for someone trying improve their financial position.

Reply by
thrashette

6 Contributions
26 People Helped

Wow, a lot of you are really ignorant as to how credit scoring works. Credit Karma doesn't "take away" your points. They're using an actual scoring model, not something they fabricated. YOU'RE lowing your very own score by your poor habits and choices. Capital One makes some great cards these days and it's worth the inquiry if it's a product you need... any credit card application requires an inquiry. The ignorance is real.

I'd have to say I'd take CK's "recommendations" with a grain of salt, and instead stick to using this tool as a means to compare credit card statistics, track your actual credit report, and ESTIMATE the scores that lenders will pull, because a majority do pull FICO. In my experience, an increase or decrease in my Vantage score is mirrored in my FICO. So I can watch my score grow for free, knowing that it is actually increasing. Also, it's nice to see the average approval odds for different products, because I can compare them with my own. Now, just because somebody with a lower score than me got approved and I got declined doesn't mean anyone's being deceptive. Approval is based on a myriad of factors and every lender has their own criteria... if you think you're entitled to credit and get huffy when Capital One of all people deny you, you likely ARE risk and need to revise your credit habits and strategy.

Reply by
JimOw59

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credit karma has lost its credabilty! my scores are 50 to 60 points higher at fico and transunion! as of today no longer using this site!

Reply by
Tiggerman2

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Cap 1 Is a major ripoff artist.  They are good at it though.  Got  to give credit where credit is due.  As for Credit Karma?  I have had/have debts on there that are paid and when I tried to contest it, it fell on deaf ears.  They obviously only asked the collection agency who has NOT updated their records since the hospital and I have been on the phone and I KNOW for a fact it is paid in FULL!  Use this ONLY as a tool.  You will find carfax to be the same thing.  Nothing more than a tool  NOT the final word!

Reply by
dryadsmoon

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0 People Helped

If it wasn't for Credit Karma I wouldn't have good credit...sounds like this person may be a troll for another company. I am a very happy customer.

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322 People Helped

Credit score is really a debt score

Helpful to 322 out of 408 people

zero bal on credit cards, house accounts, open accounts ... Actually hurt your score. Not really hurt it, but it adds zero "points" verses having a 25-50% bal each month. Your credit score is higher with a bal and on time payments. Paying off credit cards is great, however it hurts your "credit score". I had no debt except a mortgage , no credit card balance no car loans ... Nothing. My score was 670... I got 2 cards and a house account at a chain store... I use it and pay it and use it and pay it.... I do have to pay interest, which makes me mad, but I needed the higher score for some financing... That's why I say it's a debt score , not credit. U have to have debt to have a higher score....

Reply by
lg515

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Helpful to 31 out of 55 people

Thanks for that. I used the credit simulator and with making payments on time it said no change, but if we were to buy a house it would go up. I didn't understand why.

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Reply by
DjFourmoney

10 Contributions
183 People Helped
Helpful to 140 out of 178 people

 I don't pay interest -

 Before Statement Cut, pay down the balance to below 10%

 After Statement Post, pay the balance by the due date = No Interest paid

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Reply by
takeshi74

988 Contributions
550 People Helped
Helpful to 123 out of 145 people

Incorrect.  You have to use your credit accounts but you do not have to be in debt.  Ideal utilization is about 10% or less with only one card reporting a balance.  You do not need to carry a balance to have a balance report.  Most cards report on statement date.  If you have a balance on that date then that is the balance reported.  You can pay in full and that balance will still be reported.

Try reading up some more on other credit related sites as well.

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Reply by
Floridabiker777

52 Contributions
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So true!  I've always said it was!  Government might say they want everyone out of debt but the credit scores sure do want you there.  Mine was the same.  We built our dream home a little over 3 yrs ago, so that won't be paid off anytime soon.  But our score never changed and was always like yours.  So I did some research & got a car loan, bike loan for hubby(ever though we were going to just buy it), & several nice cc's with good limits.  Makes a world of difference!  Hubby uses a different card every month to rotate them and I pay them in full.  Our score dropped a lot from the inquiries and new cards but it's going up pretty quick.  We wanted a score over 780 to get a mtg for a pool at the lowest possible rate.  Seems unfair that we have to change our lives for nothing.  

Reply by
niz

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Thanks a lot for sharing this!

Reply by
HydBiryani

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Ref Takeshi74's post - I have 10 credit cards and I try to keep my utilization below 7%on all of them before statement date and pay off all the statement balance within days. I have been doing this for a year and my scores did not really improve, maybe by 20 points.  I do see a consistent theme in my free fico scores offered by some of my cards with factos affecting is " too many accounts wth balances" and I have been thiking is was due to my car and home loans. I will trying paying of all but one card before statement date and see if it makes any difference to my score.

Reply by
zjlh67

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My scores on Credit Karma are in the mid 820's.  right now I have some balances, but I haven't paid interest since January..  I have one computer related card that I bought a computer on 18months no interest.  I have a card that used exclusively for vet/pet stuff (boarding/pet food/etc).  certain bills are on auto-pilot/auto-pay..  the cards that aren't interest free I pay off each month.  Only interest I pay now is on auto/mortgage loans, but low APR.    There are a few ways that you can use your credit cards to keep the utilization score up, but as long as you don' t carry a balance (and pay off no interest charges before final due date) no interest will be charged. 

A couple of lessons I've learned -
Don't mix card charges (low APR vs regular purchase APR's. 

Never pay an annual fee for a card (unless you have to or no choice).

Weigh the best option when doing a balance transfer, sometimes the higher APR with the low/no finance charge will have a better overall outlook.  It also matters if you are realistically able to pay it off in that period of time or not.

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Reply by
FirmAndSteady

51 Contributions
146 People Helped

You know it sure seems the system is set up to encourage debt, and more debt on a regular basis.  We have paid off most of our bills over the years, and don't need another mortage or more autos.  We do have one current auto loan.  Neither do we need to go out and get a bank loan just for the sake of "raising" our credit score!  I have the standard monthly bills and a few credit cards, and that's all I need.

Reply by
sug51

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That is true.  You have to have debt.  I have a friend who do not owe any one and she has a low credit score.  She was told by a company representative that she needed some kind of debt to help her score.

Reply by
jdspringr07

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This is false. You want to have no more than 30% for "responsible lending" and ideally 0-10% utilization is where you want to be. The type of credit you have greatly affects your score. You wont truly see a consitently high score without first a long credit history or reponsible history on auto and mortgage loans. 

Honestly, if I were a lender, I wouldn't put much stock in someone's credit card habbits or "store card" habbits either. 

Reply by
MSprepRN

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Enter Your Reply: i, like you have zero balances yet here my credit is listed as only fair.I've retained a letter from bank of america with a statement that I paid fully and correctly. I applied for a card and they wanted to give a high interest account, which I refuse to pay a usurious rate on.It is all a game and quite frankly I refuse to play/pay interest. i use my debit cards from my banks[free accounts]. I don't even owe on my home or car. I do not see where I am lacking in any regard. I pay and don't play the game.

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when you apply for a new card even if suggested by Credit Karma it has impact on your score. it is best if you have long standing cards to keep the oldest ones andif you have a small business Capital One will report your credit card for your buseinss credit on your personal credit report which none others do. I believe American Express Open does it only if you are not paying on time. it's best not to add anything that will result in your credit being check for applying for new credit. 

When you try to refinance they tell you not to apply for new credit. When I had a tenant move in they said please don't check our credit, we are buying a house and even though they checked our credit when we moved in, we have to check it again before the mortgage because and to get the best rate we will pay you 3 months rent in advance. ( how long they were staying). When I was refinancing they said this Capital One for business s messing up your credit reprot and I was shocked to find out that they reported it on there. So everyone needs advertising to survive. Google these things from Consumer Agencies (bonafide ones not theough an AD link or try Consumer Reports or a columnist that reports on these things) Everybody that has a website is selling. and they need their advertisers and the advertisers need them.

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21 Contributions
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Helpful to 1 out of 1 people

50% balance WILL hurt your score.  Keep it 29% or lower.  ALL THE TIME.  

Reply by
scarhill

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Helpful to 1 out of 1 people

Enter Your ReplyNo, No, No.  Your credit score is not increased if you carry a balance every month.  Paying the balance every month does not hurt your credit score.  From where did you get your misknowledge.

I have a FICO which ranges between 830 and 850.  I pay all my credit balances every month.

If you are paying interest under the misguided assumption it will raise your credit score, you are a fool.

Reply by
GAHS

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Enter Your Reply I agree a thouhsand percent! You get penalized for beaing a good stewart of your resources and paying your bills on time and eliminating debt. Totally unfair, right? Then why are they allowed to do it? Because they do not make money on reponsible people! They make the mose money when you have a balance. It is the compounding effect, it can work for you when you are paying off debt and saving and against you if you are carrying debt and just making payments.

That is jus my two cents! :-)

Reply by
thrashette

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Please don't spread this false and dangerous information. All of my cards (Discover, BoA, Cap1, Walmart MC) report their balances on the statement date. I pay in full every month and my score has increased from 650 to 735 in 8 months. I only carried a balance one month after being robbed, and my score went down that month because of a higher util %. Lenders want to see that you can manage credit and paying on time. Inability to immediately pay back borrowed funds should indicate higher risk, and while it doesn't in the scoring model, it wouldn't logically improve your status or situation.

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Reply by
MoonWoof

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Helpful to 1 out of 1 people

My CK score went down as my balances went down. No missed or late payments, EVER! No bad marks. In essence, the less I owed, the lower my credit score. Lenders charge a higher interst rate for loans to individuals wirth a lower credit score as they are deemed riskier than those with a higher score. Hmm, odd, wouldn't you say? Just sayng.... gotta call'em like I see'em!!!

The entire credit score system is a scam set up to increase the lenders bottom line. Not to mention all of the advertisements that you see on this site for credit counseling services, we can improve your credit score, legal advise on how to remove bad public records from your credit report, etc..........

Reply by
dustinrox

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The only debt I have is my mortgage. I pay my credit cards in whole before the due date and according to CreditKarma I have a 770 equifax and 768 Transunion. I don't believe these to be accurate, HOWEVER,.. keeping a balance on credit cards is a farse. You do not have to keep a balance to have a good credit score. Quit lying to yourself.

Reply by
kevinrc76

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Your Credit Score is a rating of how you manage your responsibilities, primarily those involving debt. Think of it as a risk factor analysis. The companies offering cards, loans, etc have to balance the risk they take in offering their services.

I currently have a CK score of TU 828, and Equifax 826, however I have found that CK scores are a bit more conservative as when I applied for my last car loan about 2 years ago my score came back as an 850.

In terms of Credit factors my utilization is 5%, Payment History is 100%, Derogatory Marks is 0, Credit History is 10yrs 11mos, total accounts are 14 for TU and 19 for Equifax, and Inquiries are 0 for TU and 1 for Equifax.

I don't know how accurate the Impact measurements are but I'm sure they are at least somewhat accurate. My balances have been going down steadily over the past several months and my score goes up slightly as my balances go down. I do agree that credit scores seem like nothing more than a game, but it can be won...

1 Contribution
194 People Helped

Trans Union via Trans Union vs TU via CK

Helpful to 194 out of 215 people

696 via Trans Union vs 612 via Credit Karma. Talk about INACCURATE information!! Do not rely on

Credit Karma to give you an accurate credit score. It's informative and free but it is a poor substitute

for real scores if you are working on improving credit to buy a home, car, personal line or loan, etc..

My suggestion is to pull a real credit report from a bank or mortgage broker and sit down with them and go through it.

Their job is help you become creditworthy and they can't borrow you money until you are. These guys work for you

for free and do not get paid until you get qualified. I knowthis because I am one and proud of it.

Tony Bosch

Personal Banker

Reply by
45adams

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Helpful to 16 out of 25 people

Thank you DY

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Reply by
eastcoastman73

69 Contributions
322 People Helped
Helpful to 41 out of 54 people

Yes a bank can print out your credit report, but i sat down with multiple bankers and they told me nothing more than what i already known..settle old debts, write the three credit bureaus to dispute certain items on report, build credit history, pay on time..if banks really wanna make loans to male more money..why not offer a new department that handles all of this in their banks..fact is most people give up not knowing how to handle all involved with credit companys..some people do, but majority do not !  So if banks invested more in helping people clean up their credit, factbis they would be giving many many more loans out for cars and homes.

Reply by
chrisusn

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Helpful to 26 out of 30 people

Boy is that spot on!  Just pulled my 3-in-one report and all are over 650, but my CK scores show 536 and 517 (TU and EQ respectively).......

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Helpful to 0 out of 1 people

Unfortunately, mine is just the opposite.  CK is showing scores over 50 points higher than my broker, and some credit card account sites are showing over 100 points higher than my broker.  Needless to say, I thought I was at least in the ballpark for my home loan, I wasn't even in the right city!

Reply by
maybe14

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My credit scores with Credit Karma are ALWAYS lower than with the credit reporting agencies.  We don't even need Credit Karma anymore as all of my creditors now offer free credit score monitoring and they update it monthly.  I just checked my Discover and Capital scores and they are both listed at almost 100 points HIGHER than Credit Karma.  And another disturbing thing I noticed today:  I don't know if I read the ad correctly, but there is an advertisement on this site that has you contact a company to determine if bankruptcy if right for you????  Seriously??  A credit monitoring company is suggesting that people file bankruptcy?  I will be ending my account with Credit Karma very soon.  

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Reply by
brickhouse492

20 Contributions
31 People Helped

CK has my Trans Union score at 667 and my score is really 767!  That's a huge difference.  I'm working hard to get to 700 and I passed that a long time ago.  Weird and I think Dy is RIGHT!  I still love CK because without it I was have never gotten here but I'm very upset that it is inaccurate.

Reply by
KDJohn

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I'd be leery about advice from a personal banker who doesn't know the difference between the words "borrow" and "loan".

Reply by
TheOldGrouch

4 Contributions
1 Person Helped

Gee, if Ck scores are lower than the "real" scores, then I must have the best credit rating on the planet since mine is always over 800 on CK.

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15 Contributions
110 People Helped

Fico Score vs Everyone Else's

Helpful to 83 out of 97 people

For the purposes of this post I'm going to generalize my comments since there are always exceptions to any rule. But I do believe they follow what is considered common within the framework of what we know about credit scoring.

Just because VS was created by the bureaus doesnt (in-and-of-itself) make it any more legitimate. VS started out with a 501-990 scoring base and is currently on its third model after being initiated in 2006. Furthermore please note that while this claim of scores being generated directly from the bureaus is constantly touted by CK that Experian is noticeably absent. Did u ever ask yourself why that is? Stew on that awhile.

The most popular & widely used scoring model (Fico) is also the most expensive. One way to look at it... if U go to purchase a vehicle and need financing a lender will try to get U approved via 'traditional' means (major banks). They are all pulling your Fico (bankrate) score.

However, when U dont qualify for a 'traditional' loan then the dealership will need to get U approved via (NON)traditional means or you will need to visit a dealership that specializes in (non)traditional loans. And the scores being used most often by such lenders wont be Fico scores but scores developed thru other sources which will be cheaper not to mention tailored/modeled to those considered riskier borrowers.

All of the major lending institutions are utilizing Fico scores and the majority of others arent. Its cheaper for those other entities to employ scores (such as VantageScore for example) that are cost efficient to their business. Then depending on the institution in question (as well as the specific industry the business is involved in) those models can be broken down even further demographically as the business in question attempts to gauge as finite as possible a potential borrowers risk. The various categories that are crunched are so expansive if U saw it on a spread sheet it would likely cause your eyes to pop out - its pretty deep.

Know this: scores are only legitimized to the extent that there is someone out there willing to use it/pay for it. The model itself in actuality may not be very concise but if you can convince enough businesses of its usefulness (and more importantly its 'cost effectiveness') then suddenly the model becomes legitimized even if its not much more effective than its equally inspired counterparts.

The big difference however isnt the number of models that exist: its whether U possess decent enough credit that will qualify U for a loan that will be utilized by lenders who pull your Fico score. If you possess a poor Fico score then the score that ultimately will be used to get you approved will almost always be via one of the hundreds of (non)traditional lenders scoring models. And within those models are additional models (shelf and customized models) that as mentioned above will further dissect U demographically to more accurately assess creditworthiness. And as we all know the interest on (non)traditional loans are usually extreme to say the least.

Imagine if everyone had good to excellent credit what that would do to the (non)traditional lenders that now exist bcuz lets face it - there are ppl whose job it is to make a living off of your misfortunes and that is why places like payday loans continue to exist.

Bottom line: as a consumer it is pointless worrying about all the different scores that exist. Its common knowledge that Fico offers lenders an industry score different from consumers. However the scores arent much different from each other as some seem to suggest unless a lender continues to use an outdated scoring model (which many do). Otherwise the main difference (score wise) is going to be whatever customization takes place within the base model to break down each borrower into specific categories. But from a lending standpoint its mostly negligible given that the consumer and lender scores are going to be in the same ballpark with the only significant difference being how much and @ what interest rate one gets approved for.

As for VantageScore, for now (IMO) it should reside in the (non)traditional category. I will submit that some lenders who utilize VS 'MAY' be considered major by industry standards but we dont know that since they have yet to release who those entities are. And the 'many' they claim are using it is questionable as well. But even giving them the benefit of the doubt, to me its like comparing the population of the state of Texas to the population of the entire U.S. That would be how VS ranks against Fico. Therefore if you choose to rely on VS in determining your own creditworthiness then U do so @ your own risk.

That said, if everyone continues to develop their credit so that they can get approved via traditional lenders then all the other (nontraditional) credit scores in existence become obsolete.

** That said I believe the best source for loans/credit cards etc. is via Credit Unions. If you become a member (and I believe its a good idea to do so) then some of your best rates for any type loan imaginable will be found there. So even b4 trying to secure credit thru a major bank I'd recommend going thru your CU first. They are especially great for building/rebuilding credit consumers**

Reply by
griff92201

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On the surface your write up seems interesting, but, I have problems taking anyone serious that uses "bcuz, U, b4" in what is supposed to be a serious topic. Your reader trust score regarding this article is a 3.

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I'm going to jump on the bandwagon here.  I hope you listen to what griff92201 says.  Please use proper grammar and spelling if you wish to be taken seriously.  It's very simple as almost every Microsoft Word variant has built in grammar and/or spell check!  Other than that, I found your post informative!

Reply by
asiachifonlove

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Thank you for so much great information. You are very helpful!

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Reply by
jan731

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Enter Your Replythe three credit bureaus and Rico need to come to a concerns us and get their s%%%% together. It is not fair to consumers, it is a ploy to keep us in the dark,when I purchased my house some tri merge credit was used not Rico, and they say to pay your bills on time well Ido so why did my score drop 75 points because I used my credit cards, I know all about utilization blah blah blah just another way to stick it to the consumer

l

Reply by
shadowsbane0

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TQS: Very thoughtful, articulate, and accurate assessment.

Reply by
shadowsbane0

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I forgot to mention to the grammer Nazi's out there to pull their heads out of thier fourth point of contact and look around.

Language is a living construct. That means is grows and it changes. Just because you aren't used to using language in the same manner does not make you the wiser person. In fact I would posit TQS's response would be easily digested by the younger audiences who frequently have credit problems. The millenial generation has taken the english language in a whole new direction that will probably last quite a bit after my lifetime. We can all thank texting and social media for that. Being a jerk to someone who is trying to help someone else just because you didn't like his modern spelling, is - well just bad form.

Reply by
genhs

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WHAT A READ..   WHAT INSIGHT   &   WHAT A CONTRIBUTION!!!     

I would especially give you a nod relative to you comments about  CREDIT UNIONS! 

spot on Brilliant...    

Gratitude for your epic  Document..

JT

______________________________

________________________________

Credit Karma Team
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Helpful to 130 out of 191 people

Hi JMSchweitzer,

Happy to help clear up some confusion.  You have multiple scores from each bureau, depending on the formula used. You did not mention which formula was used to calculate the TransUnion score of 673.

The score provided on Credit Karma is a TransUnion New Account score ( as well as VantageScore). Different formulas weigh the components of your score differently. The score used to calculate approval for a mortgage is different than the score used to calculate approval for a new credit card. It isn't helpful to compare scores from different formulas. You can read more about this topic here: https://www.creditkarma.com/article/differentscores. 

Reply by
dmoorerepair

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if credit karma IS trans union, whydoes credit karma say my  score is 651 and trans union says its 596?

Reply by
ctb1053

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I noticed when Credit Karma changed how they calculate scores, mine dropped almost 100 points from around 720 to around 630. I thought I had done something, missed a payment or such, to hurt my score. Nope. My FICO score is still over 700. So basically the numbers don't seem to matter, everyone just uses their own arbitrary system depending on which factor(s) they feel are more important. Without consistency between the credit bureaus the best advice seems to be shop around and get offers from businesses who use whichever credit bureau scores you the best.

Reply by
tonyhe1

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If Credit Karma uses Transunion, why isn't every account on Transunion shown?

Reply by
sanofihater

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You should have that in big bold letters on the home page!!  That is very sneaky and underhanded, and to blame consumers for not knowing what model they used to get their score is just asinine!!!  Shame on you!!!!

Reply by
jrmtuba

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Why does Credit Karma show all of my ratings as being much, much higher than actuality?  I bought a car two days ago.  KC showed my credit ratings to be bettwen 70 and 80 points than both of their ratings agencies.  It did n't hurt me quite as badly as I thought; but was they were fantasy numbers.

Reply by
shadowsbane0

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What everyone needs to understand is that credit reporting is a multi-billion dollar business. Unlike when credit reporting first started as a means to determine a persons creditworthiness, now it is all about making a profit. If the majority of the people were reported as being an excellent credit risk, no one would pay the bureaus for their information. To counter this they make up various formulas to calculate your score. The exact calculation used in these formulas are proprietary secrets so they can change them as needed to ensure the bulk of the population remains in the fair to good range. As trends change and the population is more creditworthy as a whole based on economic situations, the bureaus will change their formula to lower the scores an make people seem more of a credit risk than they probably are. When there is more risk out in the market and financial institutions can't make enough loans the formula changes again and scores start to go up. It's all just a game. The bottom line is, unless you need to apply for something that relies on your credit score forget about your score. Pay your bills and debts because - well they are your bills and debts. When you need to finance something start planning for it six months out and do what you need to do get your credit scores in the right range. What you have to do will depend on what you are trying to get financing for. Find the credit model that  matches that transaction and adjust your habits to maximize on it.

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Always check real FICO scores

Helpful to 13 out of 13 people

I lived without credit cards for 6 years with the belief that I should live within my means and without credit.   I paid off my car loan without ever a late payment but when paid off a year ago, I had no open accounts.  My credit score on CreditKarma was 579 becaise I had no open accounts (revolving or installment).

So I began a credit rebuilding plan.  Got a secured credit card from Capital One for $500.  After three months of less than 10% utilization and always paying off completely AFTER statement, I was approved for Capital One QuickSilver unsecured card for $500.  Now I have two credit cards with perfect payment history below 10% utilization each month for 7 months on secured and 4 months on QuickSilver.  

CreditKarma says my credit scores are

TransUnion: 670

Equifax: 666

I am getting ready to apply for FHA loan with low income grant from state for 3.5% downpayment and closing costs (need score of at least 640).  So I decided I needed to know what my REAL FICO score was instead of CreditKarma's FAKO score.

So went to myFICO.com (Fair Isaac Corporation) and purchased FICO Score 3B Report ($29 per month but can cancel anytime) which includes all three credit bureau scores for many score models.  myFICO claims "FICO Score-8 is most widely used for mortgage lenders" and they now have SCORE-9 but not widely adopted yet.  They state this about SCORE-8 "This is the FICO® Score version most widely used by lenders and that's why it is most prominently featured in your FICO® Score explanation"

My FICO Score-8 scores were dismal:

Transunion: 618

Equifax: 604

Experian:  623

I was shocked.  CreditKarma had me eligible for FHA mortgage at 666-670 scores and I was not even close.

Then, I clicked on the little i (information) by "Need help understanding FICO Score versions".  It says "It is very likely your mortgage lender is using FICO SCORE-5 at Equifax, FICO SCORE-4 at TransUnion and FICO SCORE-2 at Experian.

My FICO SCORE-5 at Equifax:  661

My FICO SCORE-4 at Transunion:  678

My FICO SCORE-2 at Experian:  650

These numbers are very close to what CreditKarma was telling me.  My guess is myfico.com is emphasizing Score-8 model but most mortage lenders are NOT using SCORE-8 at present.  Mortgage lenders have to purchase these scores from Fair Isaacs and it is probable they prefer sticking with the ones they are used to and have experience with rather than wade into uncharted waters with newer less tested scoring models.

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Credit Scores

Helpful to 53 out of 56 people

If you want to pay zero interest and still show active credit try the following. Say you charge 100 on January 10th and your statement arrives on January 22nd and has a due date of February 15th. You now owe 100 and if it is paid by 2/15/15 you will owe no interest. Sometime after 1/23/15 you can charge another 100 or so and this statement will arrive around February 22nd with the 100 balance. The account is active and you have incurred no interest charges. Do this with several cards and you have activity, you float a few hundred dollars among several accounts and pay no interest. Vary the amount you carry by a few dollars each month either up or down. Keep the amount you carry on each card low so your utilization overall is low. If your due dates vary among cards, time your charges to the card that has most recently cycled. This allows you to carry the most debt for a longer period without interest charges. This will not work for Credit One since they start charging interest from the day a charge is made. Avoid these guys if you can or use them as a last resort.

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smartblonde51

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I discovered something with my Capital One Quicksilver card that was quite interesting to me. I made a purchase, and returned it a couple weeks later after the bill generated. The credit for the item issued back to my card actually left me with "no payment due" for that month even though it wasn't actually a "payment". I had every intention to make the payment, but was able to skip that one until the next month. Now I don't plan on doing this regularly as I want to actually pay for my purchases, but it's good to know.

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I do this for the majority of my credit cards.  I get paid once a month.  I use my credit cards to pay ALL my bills, including gas and groceries.  I then PAY THEM OFF as soon as I get paid, making sure none of the bills paid are outside the specific card's grace period!   

I'm not loaded, so I DO have a balance on a couple of my cards, but unless God comes along and wipes out everything I own, I get fired, and am forced at gunpoint to pay thousands of dollars at an ATM somewhere, these balances SHOULD remain relatively low and limited to the couple cards they're currently on.  

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These Discussions Are Confusing

Helpful to 46 out of 62 people

Scores are calculated in pieces and credit data  collected from all three credit B.  They break everything down into their so called historical personal spending behaviour and age. In other words, the credit bureaus claim to understand how we spend our money and manage our finances by sorting our data in five seperate categories. These areas selected by them impact how our points go up, or how they go down by balancing the negative and positive information reported. So, here is a good one, if you are late on a payment, you just became irresponsable and worthless costing you, a negative or minus points to drag your long hard earned points down the pike. Now, for being late your score intantly declaines, and to bring them back up it will cost you 100 lashes, you are punished. You will have to re-establish your pristine record back up by making ontime payments for an eternety, and then they decide to bring you back up to the respectable up right citizen sociaty.  So, they look at your payment story (35%), how much money you have oustanding or owe (30%), how long have you had a credit history established (15%) is a big one, what kind (10%) of credit have you used, or are using, and any new credit issued, (which I think is another 10%) recently to you. 

No matter how you look at it, you can be in control to an extent, but for the most part they call the shots, and decide your character, your ethics, your moral standard in your community, and if you are worthy enough to own a piece of property a new or used car, and to what school your kids are able to register next semester. Just ny two cents!

Reply by
jackieblue43

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And then when it is all said and done, they will still say NOOOOOOO and cite "debt to income ratio" too low.

Eff it!!  It's like Gas stations on three corners with three different prices varying by only a few cents each.

Reply by
rogelioelboricua

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I am IN TOTAL AGREEMENT with PicMax!!  The whole credit reporting industry needs to be regulated.  It is abusive & geared to give financial gurus unlimited reasons (excuses) to rip you off,  allows for defamation and character assesinations of real honest, responsible citizens simply because we might disagree with a lender.  I WISH THE FEDERAL GOVERNMENT WOULD GET INVOLVED & STOP THESE ABUSIVE PRACTICES.

Reply by
asiachifonlove

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Helpful to 4 out of 6 people

So sad, so very true and dis-heartening. Thank you for expressing my sentiments in a nut shell.

Reply by
shadowsbane0

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Failed Federal Regulation summed up in one word - LOBBYIST

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credit card payment techniques

Helpful to 36 out of 47 people

i believe a good idea is to arrange with you credit card issuer, wether its a bank or not,to allow each month the minimum payment, or whatever you can afford to be automatically set -up to be taken out of your bank account, this has helped me have a higher credit score --- this way you know your paying on time.

Reply by
DaveClemmons1

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Helpful to 7 out of 13 people

I agree with this idea but do you think it is better if the autmatic payment is set out of the credit card company itself or does t make a difference to set up auto-pyment out of your bank...no difference?

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Reply by
Floridabiker777

52 Contributions
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Helpful to 20 out of 24 people

Sounds like a good idea for your mortgage, car payments, etc.  I'm trying to get my score to 800 so I'm now purchasing new items and putting them on my cc's & paying them off as soon as they hit.  Not sure if this will work.  But after doing the same thing for so long and not noticing much of a change, I figure it's worth a shot.

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