More proof that CreditKarma's scoring model (and advice) are flawed

For just about anything you want to get off your chest about credit cards.
4 posts
MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

More proof that CreditKarma's scoring model (and advice) are flawed

Postby MemberSince99 » Thu Jul 26, 2012 6:29 am

I logged into CK and was delighted to discover my credit score had jumped from "fair" 692 to "good" 700 since yesterday.

That's still about 70 points less than my TU FICO, but anyway, I wondered what caused the jump, and can anyone guess what caused it?

I kid you not - my last Amex card (Gold charge) fell off. That's it! It had a 100 dollar balance report. That is the ONLY difference.

Just goes to show that the advice and scoring on there is worth just about what we pay for it. With 0 utilization your grade is a "C" but if you let a 1% balance hit it jumps to an "A". I mean come on I realize letting 1% hit boosts your score, but that's just playing a game if you think about it. A 0 balance SHOULD be an A but they have no way to measure if you actually used the card then and assume you didn't. Like I said, pay no attention to what they say, it's a useful tool to monitor your credit free but don't read too much into what they tell you.


American
Centurion Member
Centurion Member
 
Posts: 107
Joined: Thu Mar 29, 2012 7:55 am
Location: Atlanta, GA

Postby American » Thu Jul 26, 2012 9:18 am

Sometimes CreditKarma is generally around my true TU score, but I feel like 90% of the time that's all luck. It's laughable the severity of ups and downs CK calculates. For awhile I was low 700's, CK told me I was 770's. When I opened a new account I kid you not, I dropped 90 points from 740 to 650 on CK. My real CK went from low 700's to 680, a mere 20 point drop.

Use CK as a window into when your cards report, nothing more.
American Express '02: Platinum, Blue Cash Preferred 6k, SPG 2k, Delta Gold 1k
Barclaycard '11: Apple Financing Card 2.5k
Citi: Diamond Rewards 1.5k
Chase: Freedom 500
Discover '12: Discover IT 1.5k

Grupet
Platinum Member
Platinum Member
 
Posts: 88
Joined: Fri Jan 06, 2012 1:04 pm
Location: New York

Postby Grupet » Thu Jul 26, 2012 9:45 am

I really don't understand how it works, maybe somebody can explain it to me...?
In June last year my score on CK was 731 and from there on, my score has been dropping each month, and is now 704. I have no idea why? I don't have any debt, I pay everything on time, have never been late on any payment. I have 3 credit cards, 2 i only use a little bit each month, and then my Amex Platinum which i use for almost everything (between $3000 - $5000 a month).
I upgraded from Amex Gold to Platinum in December last year, but as far as i know, upgrade is only a soft pull right?
Why is my CS dropping each month?
American Express Platinum
HSBC Platinum Master Card
Citi Diamond Preferred Master Card

American
Centurion Member
Centurion Member
 
Posts: 107
Joined: Thu Mar 29, 2012 7:55 am
Location: Atlanta, GA

Postby American » Thu Jul 26, 2012 1:34 pm

Grupet wrote:I really don't understand how it works, maybe somebody can explain it to me...?
In June last year my score on CK was 731 and from there on, my score has been dropping each month, and is now 704. I have no idea why? I don't have any debt, I pay everything on time, have never been late on any payment. I have 3 credit cards, 2 i only use a little bit each month, and then my Amex Platinum which i use for almost everything (between $3000 - $5000 a month).
I upgraded from Amex Gold to Platinum in December last year, but as far as i know, upgrade is only a soft pull right?
Why is my CS dropping each month?


Credit Karma will use your charge card in how it calculates utilization, which is not actually calculated into your REAL credit reports. One of the many flaws of their scoring calculations.
American Express '02: Platinum, Blue Cash Preferred 6k, SPG 2k, Delta Gold 1k
Barclaycard '11: Apple Financing Card 2.5k
Citi: Diamond Rewards 1.5k
Chase: Freedom 500
Discover '12: Discover IT 1.5k



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests