Credit Karma- Looks Awesome!

For just about anything you want to get off your chest about credit cards.
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nismoZtuner
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Credit Karma- Looks Awesome!

Postby nismoZtuner » Sun Jan 26, 2014 8:33 pm

I made a Credit Karma account a few days ago and im barely going over their site and came across this that seems really cool.
[img][IMG]http://i1127.photobucket.com/albums/l640/Cali_kingzx/credit.jpg[/img][/IMG]


I also did notice that not all of their stuff is accurate (i think). I used their score simulator and it seems that if i pay off all my cards that my score will go down 10 points :confused:
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710
BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]
American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]
Chase Sapphire Preferred[7.3]
Inquires: TU(?) EX(?) EQ(?)
TCL-$19,800
Age-22


TheLethargicAge
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Postby TheLethargicAge » Sun Jan 26, 2014 8:56 pm

Take CK's advice with a grain of salt.
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)

MemberSince99
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Postby MemberSince99 » Sun Jan 26, 2014 9:20 pm

As Lethargic said. It's useful for monitoring TU but that score is useless my CK score is 729 but my FICO from MyFICO is 785 and my Barclay's TU08 is 794. Pretty big difference there.


And their advice is horrid. They give you a C grade for < 1 % utilization, but an A for 1-9%. So in other words adding more debt is viewed as a positive. WRONG. There are many other examples of it being kind of a joke, just remember it's worth what you pay for it. (It's free).

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otter
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Postby otter » Sun Jan 26, 2014 10:07 pm

And Credit Karma perpetuates the myth that closing cards hurts your credit score by affecting your AAoA. It may hurt your utilization, but closed accounts continue to report for 10 years (if positive). So you have people who are paying tons of fees with sub-sub-prime cards by First Premier and Credit One who are afraid to close them because it is their oldest card. In reality, closing those type of accounts will probably help people both financially and credit wise (having a First Premier account does not hurt your FICO by itself, but it is probable that prime issuers like Amex and Chase score an open tradeline with FP or Credit One negatively in their internal scoring).
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

takeshi
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Postby takeshi » Mon Jan 27, 2014 8:06 am

nismoZtuner wrote:I also did notice that not all of their stuff is accurate (i think). I used their score simulator and it seems that if i pay off all my cards that my score will go down 10 points :confused:

CK's scores are FAKO's. The scoring simulation is their model and not based on the FICO model that a creditor would use. Even with FICO scoring there are a number of different models used by creditors that can impact the specific score. CK is useful for monitoring your TU report data and for broad trends. Other than that, take it with a grain of salt.

MemberSince99 wrote:And their advice is horrid. They give you a C grade for < 1 % utilization, but an A for 1-9%. So in other words adding more debt is viewed as a positive.

Their credit report card grades are misleading at best but 0 utilization is worse than >0. It's just not necessarily equivalent to 41-60% utilization as CK indicates. Utilization is rounded up so anything that isn't 0 is a 1. Even CK doesn't blindly view more debt as a positive. There's a curve and it drops off to either side of the 1-20% (not 1-9%) bracket. The peak % for a given person may not be the same as the next but it's more likely to be 10% or less.

otter wrote:And Credit Karma perpetuates the myth that closing cards hurts your credit score by affecting your AAoA.

CK uses AAoOA, not AAoA. FICO scores on AAoA.

thom02099
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Postby thom02099 » Mon Jan 27, 2014 9:39 am

otter wrote:And Credit Karma perpetuates the myth that closing cards hurts your credit score by affecting your AAoA. It may hurt your utilization, but closed accounts continue to report for 10 years (if positive). So you have people who are paying tons of fees with sub-sub-prime cards by First Premier and Credit One who are afraid to close them because it is their oldest card. In reality, closing those type of accounts will probably help people both financially and credit wise (having a First Premier account does not hurt your FICO by itself, but it is probable that prime issuers like Amex and Chase score an open tradeline with FP or Credit One negatively in their internal scoring).


AND....to add insult to injury, CreditKarma does not factor in those CLOSED ACCOUNTS in their scoring, while FICO does...as it should. One has a lengthy credit history, full of old, paid auto loans, or personal loans, or old credit cards paid satisfactorily. FICO takes all of that into consideration, for at least 10 years....sometimes beyond. I have old auto loans that are still on my credit reports from the late 90s, factoring positively into my FICO score. CK? Not so much.

CreditKarma and the like are for entertainment purposes only.
Retired, and in the process of retiring cards!
EQ = 846 EX=828 TU = 836 as of 02/2016

MemberSince99
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Postby MemberSince99 » Mon Jan 27, 2014 10:35 am

Even CK doesn't blindly view more debt as a positive.

It does as far as 0 vs higher goes.

flan
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Postby flan » Tue Jan 28, 2014 6:21 pm

thom02099 wrote:AND....to add insult to injury, CreditKarma does not factor in those CLOSED ACCOUNTS in their scoring, while FICO does...as it should. One has a lengthy credit history, full of old, paid auto loans, or personal loans, or old credit cards paid satisfactorily. FICO takes all of that into consideration, for at least 10 years....sometimes beyond. I have old auto loans that are still on my credit reports from the late 90s, factoring positively into my FICO score. CK? Not so much.

CreditKarma and the like are for entertainment purposes only.


CK use TransUnion's 'New account score' which is a score that TU claims predicts default in the first 24 (or maybe 36 months) of account opening. It is a real commercial product that lenders can buy. I do not know if they do, or not.

But outside of the mortgage industry, lenders use a whole lot more than fico scores. They may send you a letter saying they used a fico score, but it's not the only factor (and may not have played any role in the decision). Even if they buy all their metrics from fico, inc, they're not just looking at the classic scores. Fico sell scores that are designed for particular purposes, and many big lenders (citi, boa, chase, amex, probably more) use their own internally developed systems.

As I noted, the CK score is a 'new account' score, so it's measuring risk to a new lender, not to someone you already have accounts with. So it's more sensitive to new accounts, inquiries, and age of accounts than other account review scores are. TU has also decided that closed accounts aren't useful for this. (And frankly, what's your 15 year old auto loan got to do with paying one back today? Very little to nothing, for the most part. An account closed last week might be relevant, though.) FICO sell a pretty similar score, but you'll never be able to find out what yours is....



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