Why does Credit Karma not lower your score?
It's important to point out that checking or monitoring your credit with tools like Credit Karma doesn't affect your scores because it only results in a soft credit inquiry. If you're rate shopping, FICO® recommends that you do so in a short period of time.
Checking your free credit scores on Credit Karma doesn't hurt your credit. These credit score checks are known as soft inquiries, which don't affect your credit at all. Hard inquiries (also known as “hard pulls”) generally happen when a lender checks your credit while reviewing your application for a financial product.
If your Credit Karma score isn't accurate, the problem is probably elsewhere. That is, one of the bureaus made an error or omitted information. Or, the information might have been reported to one bureau but not others.
Here's the short answer: The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus.
This is mainly because of two reasons: For one, lenders may pull your credit from different credit bureaus, whether it is Experian, Equifax or TransUnion. Your score can then differ based on what bureau your credit report is pulled from since they don't all receive the same information about your credit accounts.
Your FICO Score is a credit score. But if your FICO score is different from another of your credit scores, it may be that the score you're viewing was calculated using one of the other scoring models that exist.
Credit Karma is useful for following your credit trajectory—but you should keep in mind that the score they provide is not a FICO score. Credit Karma uses VantageScore, which is similar but generates scores that may differ significantly from FICO, as you've noted.
They may differ by 20 to 25 points, and in some cases even more. When Credit Karma users see their credit score details, they are viewing a VantageScore, not the FICO score that the majority of lenders use. A VantageScore has the same credit score range as FICO, and uses some of the same information as a FICO score.
But how accurate is Credit Karma? In some cases, as seen in an example below, Credit Karma may be off by 20 to 25 points. On this page: Comparing Nate's Credit Scores on Credit Karma vs.
Simply put, there is no “more accurate” score when it comes down to receiving your score from the major credit bureaus.
How do I know my real credit score?
- Online by visiting AnnualCreditReport.com.
- By calling 1-877-322-8228 (TTY: 1-800-821-7232)
- By filling out the Annual Credit Report request form and mailing it to: Annual Credit Report Request Service. PO Box 105281. Atlanta, GA 30348-5281.
For a conventional mortgage in California, you typically need a minimum score of at least 600. If you qualify for certain government-backed loans, however, you may be able to buy a home with a score as low as 500.
Experian vs. Credit Karma: Which is more accurate for your credit score? You may be surprised to know that the simple answer is that both are accurate. Read on to find out what's different between the two companies, how they get your credit score, and why you have more than one credit score to begin with.
First things first: It's perfectly normal for scores to differ slightly among agencies. It's up to lenders to decide which information they report to the major credit agencies — and which agencies they report to in the first place.
Scoring Models: Both agencies use slightly different scoring models to calculate credit scores. This means that the same credit activity can have different impacts on the scores calculated by each agency. They each also consider certain factors more heavily than others when calculating scores.
Mortgage lenders pull all three credit reports
According to Darrin English, a senior community development loan officer at Quontic Bank, mortgage lenders request your FICO scores from all three bureaus — Equifax, Transunion and Experian. But they only use one when making their final decision.
FICO 8 scores range between 300 and 850. A FICO score of at least 700 is considered a good score.
The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.
Heavy credit card use, a missed payment or a flurry of credit applications could account for a credit score drop. Amanda Barroso is a personal finance writer who joined NerdWallet in 2021, covering credit scoring. She has also written data studies and contributed to NerdWallet's "Smart Money" podcast.
Approval Odds are guidelines — not guarantees
But keep in mind that though this determination is based on member data and lender criteria, it's not a guarantee that you'll be approved. Everyone's credit situation is unique, so there's simply no way to make a perfect comparison between our members' profiles.
Can you trust Credit Karma scores?
A: Credit Karma is a legitimate company; however, for a variety of reasons, its scores may vary greatly from the number your lender will share with you when it checks your credit.
FICO® Score 8 is a base credit score that credit providers use to help figure out a potential borrower's credit risk. Your payment history, credit utilization, length of credit history, new credit inquiries, and the types of accounts you have (your credit mix), are all factors that come into play within FICO® Score 8.
Since each agency independently determines your credit scores based on the information in their individual databases, there may sometimes be slight differences. Some lenders also only report to one or two credit reporting agencies, which means your credit history could look different from agency to agency.
For instance, major credit bureaus frequently use the FICO score and VantageScore credit assessment models. However, users have often reported that their TransUnion score is usually lower than other credit scores. That is because the TransUnion credit scoring model is usually stricter than other ones.
Experian has one big advantage over Credit Karma – it is one of the three major credit bureaus responsible for determining your credit score. This makes it a much more reputable brand than Credit Karma, although that doesn't necessarily translate to better service or stronger security.
