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lookingforsomeanswers

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Does credit karma take into consideration your investments?
This is my first time checking my credit. It was quite a bit lower than I thought it should be (701). I am trying to figure out why my credit would be that low. My credit history is only 5 years or so, and I do not currently have any credit cards (recent graduate, job hunting). I have never had any bad marks on my credit that are being shown to me; however, I do have several student loans, which are paid off regularly and on-time (one of which I fully paid off a month or so ago).

I thought that maybe because of the debt from my student loans, and perhaps my lack of stable income, it make have had a negative effect? However, my student loans do not equal more than investments in my name (stocks, bonds, etc.)...does credit karma take any of those into consideration?

Also, when I inquired into getting a credit card to improve and establish more credit history for myself, credit karma told me that is would drop my score into the high 600s because of the inquiry...which kind of defeats the purpose!

Looking for help and information, thanks so much.

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Your income and investments are not part of your credit report or credit score.  701 is pretty good, but if you want to increase that you need some other types of credit, such as a credit card.  Visit www.bankrate.com or creditcards.org and find a good credit card (no annual fee, no interest to start, reports to all 3 bureaus).  I recommend Discover IT card because they give you your FICO score on your statement each month, and that is hard to come by, plus no annual fee and introductory 0% interest.  

The score you see here is for your use only as a guideline, it is not the same as the scores potential lenders looks at (usually FICO).  Here's what makes up your credit score:  35% is payment history, 30% is utilization (how much you owe vs. how much credit you have), 15% is credit history (how old account is), 10% is mix of credit (credit cards, loans, mortgage, auto etc.) 10% is inquiries (looking for new credit).  When you first get a credit card, your score will drop, but as you make monthly ontime payments, it will continue to rise - 4-6 months.  Also, the Credit Karma "recommendations" are just glorified ads, no guarantees they will do what they propose.  Best of luck!

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Thank you!

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