Those scores will all vary, and it doesn't matter. Your CreditKarma score is different than one scoring method by FICO, but those comparisons aren't ever going to be equal because they use different scoring methods. This is as intended. Use your CreditKarma score to gauge the overall trend of your credit score.
Why is my FICO score higher than my other credit scores? Every credit-scoring model is different. And credit scores can change based on what credit report is used to inform the model. Those differences can make some scores higher or lower than others.
Overall, Credit Karma may produce a different result than one or more of the three major credit bureaus directly. The slight differences in calculations between FICO and VantageScore can lead to significant variances in credit scores, making Credit Karma less accurate than most may appreciate.
The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.
Credit Karma uses VantageScore 3.0 from TransUnion and Equifax, which can differ from the FICO scores most lenders use. While it provides a useful estimate of your credit health, the scores on Credit Karma might be 20 to 25 points off from your actual FICO score.
Credit scores from the three main bureaus (Experian, Equifax, and TransUnion) are considered accurate. The accuracy of the scores depends on the accuracy of the information provided to them by lenders and creditors. You can check your credit report to ensure the information is accurate.
You have many different credit scores, so some of your credit scores might be higher than the TransUnion and Equifax scores you see on Credit Karma, while others might be lower.
For the majority of lending decisions most lenders use your FICO score. Calculated by the data analytics company Fair Isaac Corporation, it's based on data from credit reports about your payment history, credit mix, length of credit history and other criteria.
A missing payment can lower your score by as much as 100 points. It may take a some time for this black mark to fade from your credit report, but take heart: your credit score usually depends more on your most recent activity than on past credit problems. Keep balances low on your credit cards.
The two big credit scoring models used by auto lenders are FICO® Auto Score and Vantage. We're going to take at look at FICO® since it has long been the auto industry standard.
Why is my FICO® score different from my credit score? Your FICO Score is a credit score. But if your FICO score is different from another of your credit scores, it may be that the score you're viewing was calculated using one of the other scoring models that exist.
Here's the short answer: The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus.
A credit score is a three-digit number that measures your financial health and how well you manage credit and debt. FICO scores are a specific type of score that lenders can use when making borrowing decisions.
Don't be alarmed - it's not unusual to see different credit scores. The score you see on Credit Karma is provided and calculated independently by TransUnion. Other credit information providers may use different credit reference agencies.
A FICO® Score of 650 places you within a population of consumers whose credit may be seen as Fair. Your 650 FICO® Score is lower than the average U.S. credit score. Statistically speaking, 28% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future.
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. Secondly, different credit score models (and versions) exist across the board. As it states on its website, Credit Karma uses the VantageScore® 3.0 model.
Basically, "credit score" and "FICO score" are all referring to the same thing. A FICO score is a type of credit scoring model. While different reporting agencies may weigh factors slightly differently, they are all essentially measuring the same thing.
Once the incorrect information is changed, a 100-point jump in a month might happen. Large errors are uncommon, and only about one in 20 consumers have one in their file that could impact the interest on a loan or credit line. Still, it's important to monitor your score.
The score you see on Credit Karma is based on the information in your credit reports from Equifax® and TransUnion®. These scores are based on the VantageScore 3.0 model. If you see a higher Experian score, it is most likely because Experian may have information from sources different from TransUnion and Equifax.
Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian. Meanwhile, low-credit borrowers with scores of 600 or lower accounted for only 14% of auto loans.