Can You Really Trust Credit Karma?

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Here’s why you shouldn’t trust Credit Karma for your credit score. 

Have you ever had a sniffle or cough and decided to look up your symptoms on WebMD? One thing leads to another, and the next thing you know, the website tells you that you probably have an exotic disease from halfway around the globe. Unfortunately, Credit Karma works the same way. Today we want to explain the problem with quick credit calculators like Credit Karma and tell you what you should do instead. 

Depending on your needs, Credit Karma could be an okay place to start. However, qualifying for a mortgage is not one of those needs. Credit Karma uses the Vantage credit score, which is different from the FICO score lenders use to qualify you for a mortgage. Credit Karma could be useful if you’re buying a car or need a new credit card, but it isn’t helpful for homebuyers. 

Instead of using Credit Karma, we recommend you speak with a local lender. Not only can they give you an accurate estimate of your credit, but they can help you work through your loan options. Many lenders can even give you advice on how to raise your credit score and qualify for a better rate. 

However, let’s say you aren’t even sure you want to purchase a home yet. Is there a better way to quickly check your credit score online? In our experience, myFICO is the best place to find a baseline credit score on the internet. We’ve seen people’s myFICO score match almost exactly with what their lenders pulled. 

Many local lenders can give you tips to help increase your credit score. 

People commonly ask us how credit pulls can affect their scores. There shouldn’t be anything to worry about as long as you do all of your shopping around the same time. If you drag the process out and continually have to pull your score, however, your credit score could fall. 

Also, don’t apply for a car, second mortgage, or any other large loan when shopping for a home. This will seriously hurt your score. Instead, try to do your shopping within 30 days of your first credit pull. Your score might drop 10 points or so, but it will quickly recover. 

If you need tips and tricks to boost your score or need a great lender, please call or email us. We’d love to speak with you!