While Experian compiles your credit report and determines your credit score, Credit Karma simply shows you credit scores and report information from Equifax and TransUnion. Think of it this way — Credit Karma is like a newspaper that writes about the credit scores other companies give you.
Our Verdict: Credit Karma has better credit monitoring and more features, but Experian actually gives you your “real” credit score. Plus it offers the wonderful Experian Boost tool. Since they're both free, it's worth it to get both of them.
This is mainly because of two reasons: For one, lenders may pull your credit from different credit bureaus, whether it is Experian, Equifax or TransUnion. Your score can then differ based on what bureau your credit report is pulled from since they don't all receive the same information about your credit accounts.
Credit Karma uses two of the three major credit bureaus and scores your creditworthiness according to the widely used (but not quite as widely used as FICO) VantageScore system. 6 Your score should be within the same range it is everywhere else, including with the major credit bureaus and its many competitors.
Is Experian Accurate? Credit scores from the credit bureaus are only as accurate as the information provided to the bureau. Check your credit report to ensure all the information is correct. If it is, your Experian credit scores are accurate.
Credit scores help lenders evaluate whether they want to do business with you. The FICO® Score☉ , which is the most widely used scoring model, falls in a range that goes up to 850. The lowest credit score in this range is 300. But the reality is that almost nobody has a score that low.
Credit Karma is different from Experian. While Experian compiles your credit report and determines your credit score, Credit Karma simply shows you credit scores and report information from Equifax and TransUnion.
A: Credit Karma is a legitimate company; however, for a variety of reasons, its scores may vary greatly from the number your lender will share with you when it checks your credit.
There are many different scoring models
Each credit scoring model has its own formula that may take into account different factors of your credit report. And each scoring model weighs different credit factors slightly differently.
Best Overall AnnualCreditReport.com
The Consumer Financial Protection Bureau confirms that AnnualCreditReport.com is the official website that allows you to access each of your credit reports from all three of the major credit bureaus — Equifax, Experian, and TransUnion — at no cost.
Negative information can include late payments, collection accounts, bankruptcy or defaults. Negative information can cause lower credit scores, so the addition of such information can result in a considerable score difference when compared with prior scores.
You can get your FICO® Score for free from hundreds of financial services companies, including banks, credit unions, credit card issuers and credit counselors that participate in the FICO® Score Open Access program and offer free scores to customers.
FICO® Scores are the most widely used credit scores. An industry standard since they were first introduced over 30 years ago, FICO® Scores are used by 90% of top lenders.
Approval Odds are an Estimate, Not a Guarantee
If you apply for a credit card based on Credit Karma's Approval Odds and are declined, Credit Karma recommends that you check your credit report to make sure your information is correct.
But, despite that, you'd be surprised how many borrowers are shocked that their Credit Karma score is lower than the FICO scores their lender uses. Read on to find out why. And most importantly, what you need to know about credit scores when applying for a mortgage.
Checking your free credit scores on Credit Karma doesn't hurt your credit. These credit score checks are known as soft inquiries, which don't affect your credit at all. Hard inquiries (also known as “hard pulls”) generally happen when a lender checks your credit while reviewing your application for a financial product.
Experian is trusted by millions of consumers and businesses and is safe to use. Their free and premium services are readily available but with several layers of protection to shield your information from fraudsters.
If your bank, credit card issuer, auto lender or mortgage servicer participates in FICO ® Score Open Access, you can see your FICO ® Scores, along with the top factors affecting your scores, for free. Below is a list of some lenders participating in FICO ® Score Open Access. Look to see if your lender is listed.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
Consequently, when lenders check your FICO credit score, whether based on credit report data from Equifax, Experian, or TransUnion, they will likely use the FICO 8 scoring model. FICO 8 scores range between 300 and 850. A FICO score of at least 700 is considered a good score.
FICO just provides a numerical credit score, based on an individual's payment habits and the amount of debt they carry. Credit bureaus Experian and Equifax both provide scores, too, but they also provide detailed credit histories on individuals.
What's A Good Credit Score To Buy A House? Generally speaking, you'll need a credit score of at least 620 in order to secure a loan to buy a house. That's the minimum credit score requirement most lenders have for a conventional loan.
That's right; each of the three credit bureaus—Experian, Equifax and TransUnion—assigns consumer credit scores based on the unique information in their credit reports. This means someone may have a different FICO® Score among the different models and a different score from each of the credit bureaus.
Because your credit reports can differ, your scores are unlikely to be the same. Your credit scores are determined solely by the information in your credit reports and if that information is different across your reports, your credit scores will also be different.