“But Credit Karma Said…….”

Which scores are lenders viewing. When it’s time for a loan.

Author: Tempestt Luckett

As a professional credit restoration expert, you have no idea how many times I let out a deep sigh and roll my eyes like the Robert Downey, Jr. Meme whenever I hear a friend, relative or client tell me what Credit Karma says about their credit score.

I get it the monitoring site updates every week and provides you with a score base that many consumers think is correct. Let’s break down Credit Karma for a moment. Once you provide CK with your personal information, not only will your VANTAGE credit score populate if you have a credit file, but then you also start to see even more personalized features catered to you. You’ll see credit cards offers you may “qualify” for based off your “credit score” that CK has provided to you, also mortgage loans and even personal loans to help you pay down debt. CK is paid to provide you with this information as they are an affiliate site. Yes it’s free to view your vantage credit score. Once you click on a particular offer CK is paid off that as well and if you receive the offer too.

CK uses a VANTAGE 3.0 scoring model which was created by the three credit bureaus Transunion, Equifax, and Experian to compete with the FICO score model. The reason your credit score seems higher than FICO on a site like Credit Karma is due to the way Vantage breaks down the consumer credit file.

There are reports that CK scores are 1% within your actual FICO score.* Many lenders still use the FICO scoring models to determine your risk factor with providing loans and extending credit. CK scores can reflect higher than your actual FICO, it is advised to contact any creditor an ask what scores they use to determine eligibility as well which credit bureau scores they will pull. The moral of the story is Credit Karma will have you thinking you can get that new car but FICO scores will tell the truth the whole truth and nothing but the truth.

Here is a list of Credit Monitoring sites that uses Vantage Score and FICO Scores

 VANTAGE                               FICO            
Credit Wise (Capital One)            Discover Bank              
Credit Karma                         Wells Fargo                
Credit(.com)                         Synchrony Bank (any credit acct)              
Credit Sesame                        Freecreditscore(.com)              

*source nerdwallet https://www.nerdwallet.com/blog/finance/vantagescore-fico-score-the-difference/