CREDIT KARMA SCORE VS ACTUAL SCORE FREE

Um, the one agency you don’t have on Credit Karma is Experion, which is okay, it is for educational purposes only, but again, there is going to be a difference between that FICO scoring formula and the uh, VantageScore. Okay? Uh, they’ve now taken on Equifax as well, Equifax is also using the VantageScore through Credit Karma. They were doing it in conjunction with TransUnion, so they were offering the VantageScore pretty much automatically.

CREDIT KARMA SCORE VS ACTUAL SCORE FREE

02:57 Now, when Credit Karma showed up to the party, they were offering a free credit scoring formula.

It might even still be up right now, but typically most people are accessing the TransUnion data directly through TransUnion. TrueCredit was TransUnion’s credit monitoring site and it was super-duper popular and pretty inexpensive. For any of you that have been monitoring your credit for more than a decade, you probably remember TrueCredit. The first website that we really show AdvantageScore show up in, show up on, was a website called. Okay? That formula is showing up on all types of websites. So essentially what it is, they came up with their own formula. I would say probably a big reason if I was in the scoring uh, business, would be to really bypass the licensing fees that they were paying to FICO every time they used FICOs algorithm, because essentially what they’re doing is they’re paying FICO a fee to use that scoring formula. Okay? The reasons behind it, eh, you’ve got to wonder. Experion, TransUnion and Equifax, okay, they got together and they actually created um, they formed a team and they created this new scoring formula called VantageScore.

01:55 Well, a few years ago, the three, the three credit agencies, you have the big three.

So your VantageScore, excuse my bad handwriting, so you’re wondering, what is the VantageScore? Okay? Um, Credit Karma is not using FICO guys, it’s using something called Vantage. Keep in mind, there are a good five or six different recent versions of FICO that are used for different purposes as well, there’s the car lending score, the auto lending score, so on and so forth.

Okay? Now, and then obviously they have you know, FICO 8 and FICO 9, those are for educational purposes only. Uh, but FICO is what the banks and lenders are using. It’s an older version, it’s got to be a good 20 years old. Most mortgage lenders, for you guys trying a home loan are using FICO 4, FICO 5. Um, it’s a scoring formula that banks and lenders really aren’t using, okay.

01:01 The latest version of FICO is FICO 9, produced in 2016.

That is the scoring formula that every bank and lender is using for pretty much everything.

Okay? The FICO score invented by Fair Isaac Company, that has always been the crème de la crème. Okay? The one I always talk about is going to be our good friend, Mr. So keep in mind, you have various different scoring formulas out there. And there really is a very specific reason why your Credit Karma score would be different than what the banks and lenders are using, and the main reason really is the scoring formula. Okay? So let’s break down why your Credit Karma score is different. Every blog is talking about Credit Karma, it’s the free site, everyone’s using it, and we’re going to call this video Credit Karma Versus Everyone. The question I’m getting consistently is, “Why is my Credit Karma credit score, so much different from what the banks and lenders are using?” Everyone’s going after Credit Karma these days online.

Guys, today we’re going to talk about credit karma. 00:00 Hey, what’s up YouTubers, this is Nick Tsoukales with Key Credit Repair.

Credit karma score vs actual score