why is my credit score lower on credit karma

Why are Credit Karmas scores higher than what my bank tells me? I have been getting this question often lately. P Before I answer the question, lets review what scores are provided by. P As of my last check, Credit Karma provides consumers with 4 different free credit scores. P All of these scores are based of Trans Unions data only. So what are these scores? Two of the scores are insurance risk scores. P These are not used in lending. One of the scores is a Trans Risk score. P Trans Risk is a Trans Union score model which is not used in lending. I often hear this called a
score copy- cat. It is by no means the same as FICO. Vantage Score- This is a real credit score used in some lending transactions. P Vantage Scoring was developed in 2006 by the big 3 credit reporting agencies, Trans Union, Equifax and Experian. P To date, Vantage Scoring has 3 versions. P The first 2 versions use a score range of 501-990 and the newest Vantage 3. 0, has a range of 300-850. P Credit Karma provides a score based on the older version of Vantage, meaning a range of 501-990. P This leads to much confusion. Now that we know more about Credit Karmas free scores, it is time to answer the question. P Without knowing the actual score model and version your bank uses, it is impossible to give a 100% answer. P I can tell you most lenders and certainly mortgage lenders use FICO scores. P FICO also has many score versions. P The standard score range is 300-850. So why would your bank score be lower than Credit Karmas? P Here are the most common reasons. Only one of Credit Karma s scores are used in lending and it is an old version. P The others scores are not used in any lending transactions so they cant be compared.


Credit Karma only uses Trans Union data so it does not take into consideration Experian or Equifax data which can be different. Most banks use FICO scores. P These scores are not provided by Credit Karma. Great chance you are comparing a score from Credit Karma with a range of 501-990 versus the score your bank is using range with a range of 300-850. P This is not comparing apples to apples. P If I created a score range from 1000-2000 even the worst credit scores would be at least 1000. Credit scoring is very confusing. P As President of Credit Education for CureMyScore. com, I do my very best to make sure each and every client has the full understanding how to maximize their scores regardless of what scoring models are used. PUnderstanding scoring is the first step to Get ready for some huge FICO credit score changes this fall. offers free credit scores to consumers with no strings attached. It is a truly free service: There's nothing to cancel and they don't ask for your credit card number. The sign up process is painless. I was able to receive my free score in less than two minutes. As you can see from the screenshot above, the only catch is that under your free credit score report, Credit Karma will show you offers from various companies like Road Runner, Upromise, and Discover. You can organize the offers based on ratings from other Credit Karma users (think of it as a Digg for financial product offers). According to Credit Karma provides you with special offers based on your credit score. For example, you can get a lower interest rate on credit cards.


You may also apply for offers from cable companies and other businesses. There are no annoying pop-up ads and Credit Karma claims it will not sell your information to anyone. The ads are not a bad trade for a free credit score. In comparison,. If you're not familiar with, the raw numbers might not be very helpful. This is where Credit Karma's comparison charts come in handy. You can check your credit score for free as many times as you want. Credit Karma will keep track of your scores over time, which can help you identify overall trends in your credit score. What information do I have to provide? You have to verify your identity by providing your address, phone number, and social security number. In order to verify your identity with TransUnion, Credit Karma requires standard personal information that anyone would need to access your credit report, including your address, date of birth, and social security number. Since they realize that providing such confidential information may make some people uneasy, they ve put many security measures in place to ensure your safety. Is it safe? Yes. Credit Karma is committed to protecting your information. They have a variety of security precautions in place, including encryption, monitored servers, firewalls, read-only access, and more. More importantly, they won t share your information without your explicit permission. You can learn more about their TRUSTe-certified privacy policy. Does checking my score negatively affect my credit? Checking your score with Credit Karma won t lower your score. Since they re making the credit score request on your behalf, these inquiries aren t shown to creditors and don t affect your credit at all.


How can this be free? Are they going to sell you anything? Credit Karma is ad-supported. However, they re not the pop-up ads that you might be picturing. Instead, Credit Karma provides targeted offers they think might be helpful to you based on your current financial situation. You re not obligated to take advantage of these offers to continue using Credit Karma, and can even opt-out of receiving email offers. Is this my FICO score? The scores Credit Karma provide are real scores straight from TransUnion. However, they are not FICO scores. Because you have so many different scores (there dozens of FICO scores alone! ), the type of score, or even the number you get isn t that important what matters is the changes that you observe over time in a single score, and where that number puts you in relation to other consumers. You can learn more about the scores Credit Karma provides. Can I trust the people behind Credit Karma? Yes. Credit Karma is an honest company whose mission is simply to provide financial information and tools to everyone free of charge. They ve provided scores to millions of members and are continually growing and improving its service. They have an A rating from the BBB, are certified by, and have been featured on The Wall Street Journal, USA Today, CNN, and a. Are there other ways to get free credit scores? Yes, here are some options: More information about Credit Karma and credit scores: Discussions about Credit Karma at and. Nora's comprehensive guide to. Like this article? Pin it!

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