Read on Twitter
Thread: Credit Karma is trending because of differences between VantageScore and FICO. CK's product is valuable, and it's one of the reasons we have such easy access to credit scores now. Before CK, getting a free credit score w/o applying for credit was virtually impossible. https://twitter.com/jjasshole/status/1353764543504248837
That's not to say there are issues with the VS. For the most part, it considers many of the same factors as FICO. But there are some differences. The biggest one I've seen if you have a high credit card balance relative to your limit, the VS punishes you more than FICO for that.
Also, most lenders use FICO, so that one is a better choice if you're checking credit leading up to an application. You can get free FICO score access through Experian and Discover Credit Scorecard. You may also have it already through your bank or credit card company.
Anyway, CK's product is still valuable bc of the credit report information. It's not your full credit report but it gives you the info you need to address potential issues that could hurt your credit. CK offers Equifax and TransUnion reports, which you can pair with Experian's...
To get a full picture of what's on all reports without needing to order the full reports. CK also offers a lot of education -- and full disclosure, I'm a freelancer writer with CK, so I've written a fair amount of it.
Is it ideas to get a VS instead of a FICO score? No. I think using multiple credit monitoring services is necessary, even if they all offer FICO scores bc each one brings something different to the table.
I also think it's important that we provide better credit education.
I also think it's important that we provide better credit education.
It's better than it has been, but people should not be surprised to see huge differences between what they see from their credit monitoring services and what lenders see.
Also, it's really important to note that MOST free credit monitoring services offer the VS, not just CK.
Also, it's really important to note that MOST free credit monitoring services offer the VS, not just CK.
NerdWallet, Credit Sesame, http://Credit.com , Capital One CreditWise, etc. All VantageScores. Even some paid services do (WTF TransUnion?)
Competition in the credit industry is good. FICO has had a monopoly for a long time. Over time, the VS may gain more traction with...
Competition in the credit industry is good. FICO has had a monopoly for a long time. Over time, the VS may gain more traction with...
Lenders, which I think is a good thing because it forces the entire industry to make better models. Also, I'm happy to see that some companies, like Petal, are using alternative credit methods bc credit scores themselves aren't perfect. Expect that approach to become popular too.
