You will be surprised to know that Credit Karma, which people think is a credit monitoring site is actually a marketing and referral site. Yes, I was shocked too. They purchased Vantage scores for pennies on the dollar to market to you a score that actually isn’t yours. Another surprising thing about Credit Karma is that they also market credit cards to you that you can get because of the credit score (which isn’t actually yours) that you have.
When you fall into this trap and click the link to the referred credit card, they get $3 or $4 even if your application gets rejected. And if your application gets approved then they receive a commission of $30 or more. If we look at the math, if 3 million users apply through their website and only 33% percent get approved then Credit Karma makes at least $33million quarterly. This huge commission is why you see their ads that look very authentic. They have an enormous marketing budget.
It is very important that you go on an authentic site to look for your credit report. One way to distinguish a fake site from an original is that an original site seldom gives free reports, you have to signup with a payment plan. The free sites that provide your credit report isn’t your own report and should not be trusted at all.
When it comes to credit scores, there are 65 different FICO credit scores combined through all of the credit bureaus. Each scoring model is used for the type of report you have applied for. If you are looking for a report that can help you in getting a loan is the FICO 8 score.
It is also vital to understand what FICO is. FICO stands for Fair Isaac Corporation and is used in most bank lending decisions. It is quite different from Vantage scores as it uses a different algorithm but far kore accurate and reliable. The score range is 300-850, 30 being bad and 850 being the best. So, make sure that you get your credit report from one of the authentic sites that provide FICO scores. If you are getting your report from Equifax, it will be Equifax Beacon 5.0. If you are getting it from Experian, it will most likely be Experian Fair Isaac Version. As for Trans Union, your score will be TU FICO Risk Score Classic 04.
It is advisable that you ask your lender to verify the version of your report before having them to take out your credit inquiry for a loan. We recommend it because this could be the difference between you getting a 3% mortgage or having your request rejected.
We sincerely hope that this article helped you in clearing some of the confusions that you might have regarding your credit score. Should you have any questions regarding credit repair please feel free to contact us at 1-833-353-9273 or firstname.lastname@example.org. Our friendly Credit Specialist are standing by and waiting to address any of your questions or concerns. Don't hesitate call today!!!