As you guys know Credit Karma is not my favorite credit monitoring service. There are a few things that I really like about it, but accuracy isn’t one. There are 67 different credit scoring model and Credit Karma is using vantage 3.0. Most lenders and companies are pulling your true FICO score. I’ll break down Credit Karma in this video giving you my honest review.
Today we’re going to talk about Credit Karma review.
I’ll tell you a couple things about Credit Karma. As you guys know, it is not my favorite credit monitoring service. I’ve got probably six or seven that I use. It is my least favorite. There is a few things that I like about it, but for the most part it’s not going to be something that I really condone using too much of for accuracy.
So, let me tell you where it benefits you. Credit Karma is using a scoring model of Vantage 3.0.
Now, let me just educate you guys on something that you probably didn’t know. There are approximately 67 different scoring models, 67 different ones, everything from homes, to car scores, and FICO this, and FICO that, and Vantage, and 67 of them, 67 different ones.
67 different credit scoring models
What is accurate, and what is not accurate? Well, let me tell a few things that you need to know FICO is going to be your most accurate scoring model. Okay? FICO 9.0 is actually right now the most accurate, except, and the most riskiest, which you guys don’t know this.
In order to get a true, actually from the bureaus, and I don’t mean Experian.com, TransUnion.com, Equifax.com … Those actually are not your true scores.
You would think that going right from the bureau that you’d have the most accurate score. It is not.
However, when you go to buy a house, the lender is going to pull your true FICO. Okay? In order to get your true FICO you actually have to be a lending company. Okay? So, you’re going to get a code. When I say you’re going to get a code, you’re not going to be able to get this code.
Credit Karma doesn’t get this code. Even my FICO, which of the 67 credit monitoring services is the most accurate, but you’re not going to be able to get the code. Even my FICO does not get this code. The code is actually issued from the credit bureaus to the lenders to give you a mortgage loan.
We have people that go in to get a house, and the lender says, “Hey. You know, we’re going to try to get you approved.” You think by you having a Credit Karma 669 credit score … And you walk in. They say, “Well, what’s your credit score?”, and you say, “Well, it’s 669.” Here’s what Credit Karma does.
This is one of the reasons I just don’t like it, because there could be a 30 point differential, positive or negative, on a Credit Karma, 30 point difference. You walk into a car dealership, or you’re walking in to get your mortgage, and literally you tell them, “I’ve got a 669 score,” and they say, “Man, awesome. We’re going to be able to get you a 2.4 interest rate on your home, 30 year mortgage.
Your like, “Great.” They pull the true FICO, and after they pull the true FICO they find out that you are really a 639, 30 point less than what you thought.
But now you’re at a 3.9% interest rate, which doesn’t seem like a lot, but if it was $100 a month on your payment each month for the next 30 years, it would be a big difference. Right?
In order to get your true FICO, it has to come from companies like Credco. There’s a bunch of companies that actually have this code, but it’s a true mortgage pull. The true mortgage pull is the absolute most accurate credit score on the planet. Car dealerships are pretty close. They’ve got some pulls from different companies. They do not use the code that I’m talking about. They can use like a myFICO, so you’ve got different … where they have like Car FICO and 2.0, and other different scoring models there.
Credit Karma’s great. They put together a great and amazing platform for everybody to use and kind of give you a ballpark of your credit score. Okay? Now, it is free. Right? So, it is a great platform for mullions of people. That’s why it is the most popular, because it’s free.
myFICO might cost you 25, 30 bucks a month, but much more accurate. If you guys are going to get a car, if you’re going to get a home, if you’re going to get credit cards and you want your most accurate score, I would definitely recommend the myFICO.
It is probably going to be the most accurate you can get and pay for. Okay? But if you’re having a lender, a mortgage pull using their code, you’ll ask them if they use a code, that code will bring you the exact credit score that you have. The most accurate, real time score is going to be from a mortgage pull. Okay?
Now, how does Credit Karma make money? The review is this. They’re a free company, but do you really think they’re not making money? It is a billion dollar company. Let me share with you how they make their money.
Do you ever be on Credit Karma and they give you suggested credit cards? Okay? What Credit Karma did was partnered with hundreds of credit card companies as an affiliate.
Every time you apply for their suggested card, whether you have to put down an annual fee or you get approved, that credit card company pays Credit Karma, because they are an affiliate. Everybody trusts Credit Karma, because it’s free. They’re get on there. They’re like, “Let me get a credit card.” You get a credit card from there. Credit Karma gets paid. Millions of people use Credit Karma every single day. So, if you can think about it, that’s how they make their money.
Now, are they the most accurate? No. Is it going to give you a true score? No. Do they make a ton of money? Yes. Is it a great platform for people to get an idea? Yes. But if you’re looking to get credit cards, my recommendation is to pull myFICO, so you can get the most accurate.
We can also give you what they call a secret lenders list. So, after you guys get your true FICO contact me here, and I will give you what they call a secret lenders list.
What this does is it breaks down about 150 credit cards, the credit card names, the credit card … It might say something like, “Capital One Quiksilver.” It may say the state, the state that you’re in, and also it will say the credit limit, and it will tell you the bureau that it actually pulls from. So, you guys aren’t doing a bunch of inquiries.
You find out you’ve got a 715 FICO Score on Equifax. You can go through this list that I’m going to send you guys, and it literally will tell you, “Capital Quiksilver, you should expect about a $10,000 credit limit based on a 705 to 715 credit score.” So, you’re not shooting in the wind. You have a, hey, here’s my score. Here’s accurate. here’s what they’re looking for here. And this is what I should expect in credit limit.
So, I will give each and every person. That’s not a charge. It’s a free gift for you guys for watching Tradeline TV.
If you have any questions on how to get the list, post the questions below. Just put, “I want list,” and I will go ahead and send you guys out an email with the list, so you guys can have it. But definitely go with myFICO if you’re looking for more accuracy. Just to get an idea Credit Karma’s obviously there.
It could be 30 points high, 30 points low. It just depends on how the system’s working.
But that being said, don’t also focus on the credit score. Remember, I could put one trade line on a blank file after we sweep it and get you to a 740 credit score.
That does not mean that you’re going to get approved for every credit card, just because you have a 740 credit score. Okay? There’s got to be other factors, and I can help you with that as well.
If you guys want help with that, how to put the right trade lines on and how to structure it to actually get high limit credit cards, post comments below, “I’m interested in getting credit cards,” or, “I’m interested in getting trade lines,” and I will also take care of you there.
Thank you guys for watching Tradeline TV. As always promised, until tomorrow. Take care.