Regardless of your credit score, Credit Karma can help you improve your credit and even help you find the right credit card for your credit score. Here’s what you need to know about Credit Karma. The service works with two of the three major credit reporting agencies, Equifax and TransUnion, so that you can be sure that you are receiving the latest information about your credit record. Unlike some of the other credit sites, Credit Karma provides actual credit scores instead of just providing an estimate. It uses your Social Security number to dig deep into the credit bureaus for any sign of change in your credit status. As your credit changes, you can log in and watch your progress.
There is a delay in reporting
Credit scores may update at different times, so your credit report could experience a lag based on when creditors report your payments. There are also some lenders that only report to select credit bureaus instead of to all three. Some creditors may report faster than others, causing your credit score to change in response, even if it is only temporary.
The credit scoring model varies
Different credit reporting agencies may utilize separate scoring models, affecting how your credit score is calculated. It is one reason why credit scores can vary so significantly. One model may prioritize some facets of your credit more than others, such as late payments or your debt-to-income ratio. For its part, Credit Karma does not use the popular FICO® score for your credit. Instead, it uses the Vantage 3.0 credit score that is based upon TransUnion and Equifax reporting.
It is a mistake
Most credit scores you see on Credit Karma reflect the latest available information provided by credit bureaus. However, sometimes mistakes happen, and they can negatively impact your credit report. That is why it is so important to monitor your credit report, so you know if there are any inaccuracies that need fixing. To help, Credit Karma offers its Direct Dispute tool so you can make an easy appeal to removal inaccurate information. To calculate your score, Credit Karma uses a soft check to pull your current credit score, giving you the most current information available. Unlike a hard credit check, a soft check does not affect your credit, leaving your credit report unchanged by Credit Karma, no matter how many times you check your score. When you log in to check your score, a soft credit inquiry occurs. Because it is a general inquiry and not specific to one application, it is considered a soft credit check and does not impact your score. All said, Credit Karma will not affect your credit score, but it will help you improve it. It could very well be the perfect solution to your financial needs.
