Credit Karma Score Reliability

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GoCreditGo!
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Credit Karma Score Reliability

Postby GoCreditGo! » Tue Aug 18, 2015 1:20 pm

Credit Karma says my score is only 692 for both Transunion and Equifax
Discover, Citi, etc all report my credit as in the 770+

What is the right number?


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kcm7
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Re: Credit Karma Score Reliability

Postby kcm7 » Tue Aug 18, 2015 9:09 pm

What is the right number?


All of them are. Citi and Discover are giving you FICO scores. Karma is giving you your TransUnion "educational" score. Different scoring algorithms, so things are weighted differently, hence the different numbers. Educational scores aren't used in lending decisions. They're used for, well, educational purposes. Useful for monitoring your score and progress, but not for seeing where you stand with lenders.
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG

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CarefulBuilder14
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Re: Credit Karma Score Reliability

Postby CarefulBuilder14 » Tue Aug 18, 2015 10:23 pm

CK doesn't factor in closed accounts as part of your good history. FICO does.

Is a lot of your good history with accounts that are now closed?
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

takeshi
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Re: Credit Karma Score Reliability

Postby takeshi » Wed Aug 19, 2015 7:50 am

kcm7 wrote:All of them are. Citi and Discover are giving you FICO scores.

This.

Don't rely on oversimplications when it comes to scores such as "real", "fake", "right", "accurate", etc. There are a number of scoring models used by creditors to make credit decisions. The score that matters is whatever score a given creditor happens to use. if you're applying to Creditor X and they use the A model based on CRA 1 then that's all that matters. The B model score based on CRA 2 used by creditor Y isn't going to be relevant to Creditor X. Consider relevance of a given score.

Not only is there not just one scoring model but there are 3 CRA's and for most models you will have a score with each CRA.

I'd actually recommend reading up and learning to assess your own reports versus obsessing over the numbers. You won't know exactly what number a given creditor might pull for you but any score is generated based on the data in a report. Good reports will lead to good scores.

kcm7 wrote:Karma is giving you your TransUnion "educational" score.

This is outdated. CK used to provide the TU New Account score which was educational. They switched a while back to VantageScore 3.0 which is allegedly used by some creditors in making credit decisions. I have yet to find anything that indicates who does though.

GoCreditGo! wrote:Discover, Citi, etc all report my credit as in the 770+

Discover provides a FICO 8 based on TransUnion.
Citi provides a FICO 8 Bankcard (not the same as FICO 8) based on Equifax.

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kcm7
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Re: Credit Karma Score Reliability

Postby kcm7 » Wed Aug 19, 2015 10:20 am

takeshi wrote:
kcm7 wrote:
kcm7 wrote:Karma is giving you your TransUnion "educational" score.

This is outdated. CK used to provide the TU New Account score which was educational. They switched a while back to VantageScore 3.0 which is allegedly used by some creditors in making credit decisions. I have yet to find anything that indicates who does though.


Oops! Thanks for the catching and correcting that! Been a good long while since I've logged in to CK, apparently. Looks like the switch happened late last year!
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG



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