Hello guys,
How correct is Credit Karma? On Credit Karma, it shows I have a score of 775 and 769, but I received a letter from my bank saying my credit score is more like 693 from Experian. Can Credit Karma be wrong by that much?
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Credit Karma provides free access to credit scores and reports based on information from TransUnion and Equifax, two of the three major consumer credit bureaus. Here’s what you need to know:
- Data Source:
- Credit Karma pulls your credit scores and reports directly from TransUnion and Equifax.
- These scores should accurately reflect your credit information as reported by those bureaus.
- Credit Score Differences:
- It’s common for credit scores to vary slightly between different sources.
- Here’s why your scores might differ:
- Scoring Models: Credit Karma uses the VantageScore model, while your bank may use FICO.
- Data Updates: Credit scores can change daily due to new data being reported.
- Credit Bureaus: Different bureaus may have varying data or scoring algorithms.
- Credit Karma’s Reliability:
- Credit Karma’s scores are reliable for monitoring trends and understanding your credit health.
- While they may not match other reports exactly, they provide a good estimate.
- Action Steps:
- Check Your Reports: Review your full credit reports from TransUnion, Equifax, and Experian to ensure accuracy.
- Dispute Errors: If you find discrepancies, dispute incorrect information with the relevant bureau.
- Focus on Trends: Pay attention to score trends over time rather than minor variations.
Remember that credit scores are dynamic, and different models can yield slightly different results. Use Credit Karma as a helpful tool, but always verify critical information directly with the credit bureaus when needed.