Complaint Review: Credit karma - Internet
- Credit karma Internet USA
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- Category: Credit Reporting Agencies
Credit karma Misleading Internet
*Consumer Comment: Credit Scores
I have been getting my credit monitored by this company thought I was on the right track. My score on credit karma said it
went up to 694, I was so happy because now I could apply for a home loan. Went to the bank only to be told my credit was
612 and they can't help me. All the time wasted I could have been working on improving my score In a different way.This
website had me thinking that what I was doing was working.Very devasted and embarrassed I would sue them if I could. I
even applied for a credit card they suggested to build up my credit. It was denied and went on my credit report.
This report was posted on Ripoff Report on 04/12/2015 05:51 AM and is a permanent record located here: https://www.ripoffreport.com/reports/credit-karma/internet/credit-karma-misleading-internet-1221923. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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#1 Consumer Comment
Credit Scores
AUTHOR: Robert - (USA)
SUBMITTED: Sunday, April 12, 2015
There are no less than a few dozen credit scoring models, and each model will give you a different score even using the exact same information from your Credit Report.
The most widely used model is FICO, but even with FICO there are different models within that scoring model based on what a lender wants to see. This is most likely the one your bank was using. Credit Karma uses Vantage 3.0 which is a model that is trying to be a competitor to FICO but is used by only a small fraction of banks and creditors.
Each model takes different apsects of your credit report and gives a different weight to it. Such as the Vantage 3.0 will ignore any collection accounts that are paid, while FICO doesn't. However, in general if you monitor one scoring model and it is increasing it would most likely have increased in other models.
So while if you say started at a 600(for example) with CK and got to a 694, it is very likely that you started with score well below 600 in the FICO score to get to 612.
Now, just a few notes on "improving" your credit score and getting approved for something like a home loan. You can get "bad" credit very quickly, but unfortunatly there is no "quick fix" to get good credit. Good credit takes time.
First of all regardless of your score if you have any open collection accounts, you will be denied for most types of credit. For a home loan, in general a bank wants to see 2 years(that is 24 months) of "good" credit. That means NO late payments or new collection items, and a "charge off" is just about death to any loan approval.
Next is your credit card balances. It is all about working within your limits. Ideally for any credit card you want to be using no more than 30% of your available credit overall and have no single credit card over 50%. So if you have a single credit card with a credit limit of $1000 you never want to use more than about $300. Other issue is payments. Along with being On-Time, just paying the minimum can be seen as a negative as well.
One more thing specifically for major loans such as home or car loans. The lower your score the higher your interest will be as well as down payment required. In all honestly even if your FICO score was 694 it is likely that unless you had a huge downpayment(20%) that your bank would have approved you.
Because one item your credit score does not show. Your Debt to Income Ratio. This is the amount of your debt vs. your income. For home loans a bank does not want to see your DTI to be more than 28% for the home loan, and about 35% overall. That means if for example you earn about $3,000/month your mortgage(Mortgage,PMI, taxes) can not exceed about $840/month. Where your total debts can not exceed $1050.
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