Credit Karma Score vs Actual Score

You may wonder about the information about Credit Karma score and the actual score whether it is the same or different. If it is different, then how much the score difference is. Here, I have some explanation about Credit Karma score vs. actual score and some other information related to Credit Karma score from some sources.

Credit Karma Score Vs. Actual Score

According to the Raleigh Realty site, one of the best things about service offered by Credit Karma is that it produces the credit report straight from two of the top credit reporting agencies namely TransUnion and Equifax. So, Credit Karma and your actual score reported from TransUnion and Equifax will be close where the number of points will not be much. The one credit Agency that does not report to Credit Karma is Experian and it is where your score’s largest inaccuracy will come from because it relates to your actual score or FICO score.

Credit Karma Score vs Actual Score

On the Garrets Real Estate Group site, it is explained that if you buy a home and you get pre-approved, credit score is one of the most important numbers and the number can have an impact on a lot of things in your lives. There are millions of people who do not actively monitor their credit scores and millions more do not understand the importance of having a good score. Let’s say that you want to develop solid financial habits and improve your financial health. If so, the important first step in reaching the goals is to learn where and how to monitor your credit score.

Furthermore, Garrets Real Estate Group site explains that Credit Karma is at the top of the list year after year when we talk about free services that permit users to be able to monitor and help to understand their credit scores. However, some users have noted that there are some differences between what Credit Karma reports when it is compared to other credit monitoring services.

The Reasons Why You Have to Monitor Your Credit Score

According to Clever Girl Finance, here is the explanation about why it is important to monitor your credit score. If you have a good credit score, it can make your life easier. It is also a big part of financial health. It consists of how long you have had credit, your payment history, your credit mix, how much money you owe, and any new credit accounts that you have.

If you have different credit scores, it will get you different things. Let’s say that you have a high score. If so, you may get low-interest rates from lenders and lower car insurance prices. There are also better offers from credit card issuers. Let’s say that you have a low score. If so, you are able to miss out on these deals. So, keeping track of your credit score is important. Your actions will not only have a big impact on your credit score, but mistakes in your credit report will also be able to lead to a misleading score.

The Reasons Why You Need a Good Credit Score

According to the Clever Girl Finance site, if you have a good credit score, you will have easier access to large loans such as a home loan or auto loan with better terms. It can save your money over the long run and permit you to work towards your other financial goals such as retirement or building a safety net before you decide to work for yourself.

Do you plan on making a major buy like a home purchase or car loan with the help of a lender? If so, you will need a good credit score to make that transaction flow smooth.

The Reason Why You Have to Avoid a Bad Credit Score

If you have a bad credit score, it can lead to difficulty in getting large loans with favorable terms from creditors. Let’s say that you are able to secure a loan with bad credit. If so, it seems that you will pay higher rates. Then, your higher payments are able to add up and it can make it harder to save for your other financial goals.

Monitoring Your Credit for Free with Credit Karma

If you keep track of your credit score on a regular basis, you are able to decrease your headaches. If you are able to find mistakes early, then you are able to take action to delete the false information from your credit report.

Let’s say that the mistake is not known. If so, it can be harder to delete it from your credit history in the future. So, Credit Karma is able to be your option to keep track of your scores for free.

The Accuracy of Credit Karma

It is good news that Credit Karma is free. However, is Credit Karma accurate? According to the Clever Girl Finance, Credit Karma provides a fairly accurate representation of your credit score, but it is important for you to note that there are some limitations that you must realize when you ask about the accuracy of Credit Karma.

You may find that your Credit Karma score is different from your FICO score. It happens because Credit Karma uses the Vantage 3.0 scoring model. Most lenders use the FICO scoring model, so you may find some differences along the way. However, it is not the worst flaw in some situations. If your credit score is high, you may have a high credit score across the board. So, the differences that you find in the scoring models should not affect your loan application significantly.

Is It Safe to Use Credit Karma?

Before you decide to use Credit Karma, you may wonder whether Credit Karma is safe or not. Well, Credit Karma is safe and as explained on the Clever Girl Finance site that the service is not a scam that tries to steal your information or charge your credit card.

However, it is important for you to note that Credit Karma will need your Social Security number to find your credit report. Nevertheless, it is okay to share your Social Security Number to them because it seems that they will not use it for bad things.

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