How Accurate Are Credit Scores on Credit Karma 2017
Credit scores have become an essential part of our financial lives. Whether you are applying for a loan, a credit card, or even renting an apartment, your credit score plays a significant role in determining your creditworthiness. With the rise of online credit monitoring services, such as Credit Karma, many individuals are now able to access their credit scores and reports easily. However, a common question that arises is, how accurate are credit scores on Credit Karma?
Credit Karma is a popular free online service that provides credit scores and reports to its users. It uses information from TransUnion and Equifax, two of the three major credit reporting agencies, to calculate credit scores. While Credit Karma is widely used and trusted, it is important to understand the accuracy of the credit scores it provides.
To better understand the accuracy of credit scores on Credit Karma in 2017, let’s address some frequently asked questions:
1. How does Credit Karma calculate credit scores?
Credit Karma uses the VantageScore model, which is a credit scoring model developed by the three major credit reporting agencies. It uses various factors, such as payment history, credit utilization, and length of credit history, to calculate credit scores.
2. Are Credit Karma credit scores the same as FICO scores?
No, Credit Karma provides VantageScore credit scores, which are different from FICO scores. While both scores aim to measure creditworthiness, lenders usually rely on FICO scores when making lending decisions. However, VantageScore is gaining more recognition in the industry.
3. Are Credit Karma credit scores accurate?
Credit Karma provides a fairly accurate representation of your credit standing based on the information provided by TransUnion and Equifax. However, it’s important to note that different lenders may use different credit scoring models, which could result in variations in credit scores.
4. How often are Credit Karma credit scores updated?
Credit Karma updates its credit scores and reports on a weekly basis. However, the frequency of updates may vary depending on the credit reporting agencies and the availability of new information.
5. Can Credit Karma credit scores be trusted?
While Credit Karma is a reputable online service, it is always recommended to cross-reference your credit scores with other sources, such as your FICO score from a lender or other credit monitoring services. This will give you a more comprehensive understanding of your credit standing.
6. Why do Credit Karma credit scores sometimes differ from my lender’s credit scores?
Different lenders may use different credit scoring models, resulting in variations in credit scores. Additionally, Credit Karma provides credit scores based on information from TransUnion and Equifax, while lenders may also consider data from Experian. These factors can contribute to differences in credit scores.
7. Can using Credit Karma affect my credit score?
No, using Credit Karma does not affect your credit score. Checking your own credit scores through Credit Karma is considered a soft inquiry, which does not impact your credit. However, applying for credit or loans, which may require a hard inquiry, can affect your credit score.
In conclusion, Credit Karma provides a useful tool for individuals to monitor their credit scores and reports. While the credit scores provided by Credit Karma are generally accurate, it’s important to understand that they may differ from scores used by lenders. To get a more comprehensive picture of your credit standing, it’s advisable to cross-reference your credit scores with other sources, such as your FICO score from a lender or other credit monitoring services.