Credit karma what’s the catch
Is CreditKarma.ca a safe site to use?
I am super new to r/personalfinance, and just had a quick question about Credit Karma. I am always super paranoid of anything that requires knowing so much personal information, but I understand that is a part of checking credit. Is CreditKarma a safe site? And will it hurt my score to check it on this website?
Thank you for your help!
That’s fair, thank you for the heads up!
And will it hurt my score to check it on this website?
Great, Thank you!
I just started to use it 🙂
There’s even an option to see if the state owes you money.
Im 27, and just finally woke up to the realization that financial stability is my responsibility. Better late than never to make the first step towards a more financially stable you.
Seeing as you are Canadian, you may be interested to learn that /r/PersonalFinanceCanada is a thing.
And second, be aware that your credit score in Canada is much less important than in the US. Unlike the US, Canadian lenders normally only care if your credit score is fine. You normally do not get better rates or terms on a loan if you have an amazing credit score instead of a fine score.
I had NO idea. Thank you so much for all that info! Makes me feel so much better!
I have been using credit karma for the last 5 years to get our credit into better shape. It’s never let me down and it has helped a lot to see hard work actually make a difference. I also recommend staying away from their recommendations, I was foolish enough to take the advice and apply for a personal loan to consolidate part of our debt, they qouted me 19% but the loan company tried to get me to sign on for 29.99%. I was at least smart enough to ask since they didn’t seem too keen on telling me. Other than that, fantastic place to see what’s going on.
Edit: I’ve improved my credit from 534 to 764 since I started using it.
Probably Vantage Score vs FICO.
It’s actually their own proprietary method. Mine is usually off by 20-40 points when compared to FICO.
Which FICO score? You should have 81 of them – Three major scoring models each with nine versions, from each of the three credit bureaus.
I stand corrected on many factors here!
I was not aware there were variants of FICO. The two FICO scores I look at are provided to me by Discover and by Wells Fargo.
Quite probably FICO 8, it’s the most common sort of generic score used.
The new FICO 9 has some interesting improvements, like it weighs medical debt in collections less than other types of debt in collections. And if you have any debt in collections and pay it off, it will have a very, very small negative effect on your credit.
But it’s not widely used yet and may never be.
Supposedly the next FICO scores will be more dynamic. Like right now, FICO scores take into account your credit utilization but it has no memory, but the theoretical FICO 10 will have memory – you’ll have a better score if you’ve been paying off debt than if you’ve started accumulating it.
Just did my best to look it up, aparently the only details they list for Wells Fargo is FICO Bankcard Score 2 using Experian data. Discover, on the other hand, doesn’t list jack shit other than the fact that they use TransUnion data.
FICO Bankcard scores are pretty much just used by credit card companies. Most FICO scores only go up to 850 but Bankcard goes up to 900, so that’s even less useful than Vantage really.
Discover gives me my FICO 8 score. I have the IT card, not sure if that’s different from what you have. But it’s listed in the smallish print underneath the credit factors:
Yep, I have the IT card as well. That also would explain why it is the lowest of all of my scores, seeing as it’s a generic score that covers everything.
That’s not inaccuracy, just different companies using different scoring systems. Your CK score (Vantage) will always be different than your FICO
Keep in mind that Equifax isn’t the scoring model that your bank used, it’s one of the three credit bureaus that scores your information. Credit Karma shows your Vantage score through Equifax and TransUnion.
I use CreditKarma to track trends in my credit. It reports my accounts and balances fairly accurately. If I’m paying stuff on time, I’ll see my credit maintain or slowly build. If I see a sudden drop off, I know I need to investigate.
It doesn’t display your true score since it’s just a soft credit pull. In my experience, it can be as much as +/- 30 points. But it will at least give you a general idea of where you stand.
Lower score != less accurate in terms of your actual credit history; you’d have to look at the details of your credit reports from each agency to determine that (although since more banks use Equifax, it’s likely you had more reported history through them, so a higher score). Also, each credit reporting agency in Canada uses its own scoring algorithm (even if it’s “FICO”), and Equifax offers multiple scoring algorithms to banks to evaluate you based on the type of credit you’re applying for – it’s possible even a generic Equifax score would have been lower than the score the bank gave you.
yeah, they’re showing me a score that is 45 points lower than what it actually is.
My recommendation is be wary of anything that has an unclear business model.
Their method of income is to advertise credit card offers to you. There are potentially other income sources that I am unaware of, all of which are likely reputable (they have a good user base that they likely want to keep).
Things to be aware of: Each organization collects credit information different and calculates your credit score differently so scores will vary. E.g. I have had my credit score calculated by Credit Karma to be higher than most other organizations. /u/BatchoTheGreat has had the opposite. Even if you qualify for one of their credit card offers you may not qualify for all the rewards. E.g. If you already have a credit card through one company you likely won’t get a sign on bonus for another card with the same company.