More proof (as if we needed it) that a CK score is worthless

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MemberSince99
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More proof (as if we needed it) that a CK score is worthless

Postby MemberSince99 » Thu Mar 21, 2013 4:55 pm

I checked my CK score just for giggles today after 10 days of not bothering. I hadn't wanted to as Target hit with a balance (I couldn't pay it off in time to avoid the closing of the statement) of 188 out of 1000. I try to avoid that but it happens. So my utilization shot up to 1%. (I know, any FICO guys reading, I'm a true credit terrorist and a threat to all of humanity with such a massive utilization, please accept my apologies for this crime against all credit everywhere and please don't have a heart attack over this heinous thing). Guess what? That apparently was enough to drop my CK score by 8 points. Woohoo.

Good thing it doesn't matter a bit!


TheLethargicAge
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Postby TheLethargicAge » Thu Mar 21, 2013 6:02 pm

Here's some more proof that CK score is worthless:

Today I was checking my CK score (it went up 4 points overnight) when I got an alert from Equifax credit monitoring.

CK - 692
Equifax (FICO) - 762
Blue Cash Preferred ($24K), Costco TrueEarnings ($8K), Better Balance Rewards ($6K), CashForward ($15K), Sallie Mae Rewards ($10K), Quicksilver ($17K), AARP Rewards ($15K), Freedom ($15K), Double Cash ($16.5K), It ($28.5K), Fidelity Investment Rewards ($18K), Cash+ ($11K)

VisaSpeak
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Postby VisaSpeak » Thu Mar 21, 2013 8:31 pm

it cant be that bad can it? my CK says I have 760, but my Equifax is 740. So you still get a range right?

MemberSince99
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Postby MemberSince99 » Fri Mar 22, 2013 6:43 am

Yes it varies. The closest mine has ever been to my actual FICO score is 25 or 30 points difference.

But it is that bad. One of the differences is CK counts inquiries for 2 full years against their "score". FICO counts them for one year. I know this because I saw an inquiry from 2 years ago fall off, and my score went up, where FICO would not be at all affected by that.

websteth
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Postby websteth » Sat Mar 23, 2013 10:30 am

Aside from the way they count inquiries, any balance will kill your score. I think I had one card go up by $50 from what it usually is and it dropped like 10 points. There is about a 15-20 point difference from what I see in FICO and even compared to Credit Sesame. I think it's good still for getting a general idea for what you are at but, I wouldn't take it is the word for where you are at. And what's up with the Insurance score? I've never had mine even remotely look like it's going up but, I still have great rates.
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MemberSince99
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Postby MemberSince99 » Sat Mar 23, 2013 11:36 pm

The insurance score is an even bigger joke. It rates me as terrible, yet I haven't had an accident, ticket or claim since 1988. That's with a lot of miles put on as well. If that's terrible, I really wonder what you'd have to do to get fair.

A lot of what they say can be safetly ignored as can their scores. It's just good to have a free monitoring service, just so people don't put much into what else they say.

RewardHop
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Postby RewardHop » Sun Mar 24, 2013 1:58 am

MemberSince99 wrote:The insurance score is an even bigger joke. It rates me as terrible, yet I haven't had an accident, ticket or claim since 1988. That's with a lot of miles put on as well. If that's terrible, I really wonder what you'd have to do to get fair.

A lot of what they say can be safetly ignored as can their scores. It's just good to have a free monitoring service, just so people don't put much into what else they say.


I agree the insurcance score is useless however I don't think its based on your driving record nor do they claim it is.

What is an auto insurance score?
The auto insurance score—also called a credit-based insurance score—is a three-digit number meant to predict the likelihood that you’ll file an insurance claim. The auto insurance score you receive on Credit Karma ranges from 150 to 950, and it’s calculated using data from your TransUnion credit report. However, it is not the same thing as a credit score. Also, it has nothing to do with your driving record.


http://blog.creditkarma.com/credit-101/insurance-scores/whats-up-with-my-auto-insurance-score/
[size=60]
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Barclaycard Rewards Visa Signature: 2% gas, groceries, utilities
Capital One Quicksilver Visa Signature: 1.5% everything
Chase Freedom Visa Signature: 5% rotating
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Discover It: 5% rotating
SallieMae MC: 5% Groceries, Gas, Amazon
US Bank Cash+ Visa Signature: 5% electronic stores, restaurants
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Postby JSS3 » Sun Mar 24, 2013 7:55 am

I personally use Credit Karma for it's free monitoring service as well as a GUESStimate as to where I'm at. One really can't expect all the bells and whistles when the service is FREE.
(1/13) Fingerhut - $1,100
(2/13) Capital One Quicksilver- $3,500
(3/13) Capital One Quicksilver One- $750 ($19 AF)
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(8/13) Citi Dividend- $1,200
(8/13) Chase Slate- $2,500
(9/13) Chase Amazon Visa Sig - $4,000
(9/13) Victoria Secret- $750
(9/13) Paypal Extras Mastercard- $3,000
(9/13)] MyPoints Visa- $1,500
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MemberSince99
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Postby MemberSince99 » Sun Mar 24, 2013 8:33 am

RewardHop wrote:I agree the insurcance score is useless however I don't think its based on your driving record nor do they claim it is.



What


Then in my case it's an epic fail. I haven't had a single insurance claim since the days of big hair. What exactly they see in my credit that makes me a "risk" is beyond me - the scores and history are good, no collections, lates, etc. Pretty worthless in reality I'd say.

Daniel
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Postby Daniel » Mon Mar 25, 2013 11:04 am

RewardHop wrote:I agree the insurcance score is useless however I don't think its based on your driving record nor do they claim it is.



What



I would like to note that insurance scores are not nonsense, I personally used to design them for auto insurance companies. Typically an auto insurance (or any other type of) score focuses on three general areas, ones average severity of claim, ones average propensity to file a claim, and propensity for fraud. An auto insurance score almost never looks at ones driving record and instead looks only at data that is available from consumer reporting agencies, more specifically credit reports. There are actually a lot of papers on the topic of credit history use in insurance underwriting, as the practice is relatively new (started around 1990).

Here are just a couple items that I can guarantee are used in more than a handful of auto insurance scores. There are quite a few other things that are looked at, but these should at least be somewhat interesting.
How recent your most recent auto trade was opened - If you have new cars, they have more expensive repairs on average and are less likely to be total losses.
How recent your last derogatory item occurred - People with derogatory items are positively correlated with risky driving behavior and with propensity for fraud.
Number of Late payments - This can be related to a few factors, but a couple of groups correlate this with Non-Payment Cancellation risk, in addition to more risky driving behavior.



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