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Credit Karma Is A Scam

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Credit Karma is one of the top free “credit score and credit monitoring” site online.

But understanding why it’s free will help you understand their information.  CreditKarma.com is an advertising site for credit cards, mortgage loans, auto loans, and even credit repair.  The more that you visit the site, the better the odds of you clicking on one of the ads and potentially a “sale” for one of the advertisers.

So with the credit monitoring you are sent alerts to your email about changes to your report that you should be concerned about.  I’d once received an alert that my credit limit was reduced on one of my credit cards.  I logged into the site to see which one then immediately contacted my bank to investigate.  My bank stated that my limit was NOT reduced.  So CreditKarma.com tricked me into going to their website.

Another misleading aspect to CreditKarma.com is their credit scores.  The scores on the site are “Vantage Scores” which are different from credit scores banks use which are “FICO Scores”.  Each score is calculated differently from the same account information on your credit report.  Most of the time your Vantage score is higher than your FICO score.  So what most people do is assume that their Vantage score of 700 is good enough for a mortgage loan and are shocked to find out their FICO score is actually 640.

The only website online to obtain a mortgage FICO score is MyFICO.com .

If you need any credit or mortgage advice please contact me direct.

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