Have you ever wondered why credit karma and my fico scores are different
In today's video i'm going to explain the two and i'm going to explain why you probably need both cue the video
Hi guys credit coach q here in today's video i'm going to explain
credit karma
And my fico now if you if you're new to the channel
Please like and subscribe so you can learn credit tips and tricks on how you can put your credit repair experience into your own hands
now guys, one of the first major
differences between these entities is that one is
free free free
free one is free and
you can't beat that but
It does have its limitations. So one thing
Credit karma is completely free. You can sign up at any time. All you need is to put it in your personal
Information and you can get started with credit karma with no money down
No credit cards required now my fico they do charge a monthly subscription fee
I think it's around 40 bucks a month. Um, you probably want to recheck that it might have have changed but
It is not a free subscription
but
They don't have as many limitations as a credit card institution
Now with that being said they are both ran on two different algorithms, right?
credit calmer is using what is called a
vantage 3.0 system
If you log into your credit karma on the first thing that you see under your credit scores is vantage 3.0
Now my fico is using fico
algorithm, which is probably a fico 8 fico 9
and fico 10 is coming out recently, so
They use their own algorithm, which is the most accurate
algorithm
That lenders actually use so lenders actually use fico
They don't use vantage 3.0 and i'm going to explain the difference between the two so vantage 3.0 systems
Basically are an algorithm. That is a guess
From what your score is from what your credit?
Report is showing right?
So what basically credit karma does is that they basically take a screenshot of your credit report and come up with a score based?
off what your credit report
Showing so whatever you are showing your credit report currently
Credit karma or vantage scoring system basically will come up with a a score that they are guessing
Best fits the description of what's on your credit report at the time. So it's basically a guess. That's why you don't have to pay
For a monthly subscription because you are basically getting a guesstimate of what your score is now. I want to also
Advise you guys that if you are using credit karma credit karma has been known to be off
Between 40 to 60 points from what your actual score is
now
another thing
Number two when it comes to the second most
Differences of the the two institutions is credit karma only uses two credit bureaus
Whether my fico actually uses
All three credit bureaus so you own you have three credit reports trans union equifax and mike
current transunion equifax and experian and
credit karma is currently only using
Transunion and equifax. They are not using experian at the time. So
You're basically in the dark when it comes to credit karma because a lot of institutions and a lot of banks only use experian
When it comes to pulling your credit report
And if you don't know what your experience score or report is then you're basically in the dark when it comes to you
Applying to any type of loans or any type of funding because you don't know what that is
so make sure that you are getting
An experian account some way form a fashion because credit card is not going to give it to you
now
another thing
that makes these things different between
the two of them is
You can dispute
items directly within the back office of your credit karma account
Which is kind of awesome if you ask me, so yes credit karma has partnered up with trends union to allow
You to dispute items
Online directly within their software. All you have to do is
pinpoint one
item
and
I'm gonna add that you only can dispute one item at a time
You cannot dispute multiple items or a bulk of items
You want to dispute one item at a time per month or per investigation?
But you click on the account that you are wanted to dispute
They give you a series of dispute reasons you click those and you put your dispute in
Now I some disputes have got removed. I have heard that but I want to give you also an add-on
That if you are disputing
Online you are waiving your fcr rights now
at
We created a amazing software that allows you to do everything yourself
You can dispute over 150 items that's negative on your credit report for 100 different reasons
The software allows you to do everything step-by-step. It's a four-step process
The link is in the bio for you to sign up with that for a dollar now
That software is completely different from credit karma or transunion
and
You keep all your fcra
rights, when you dispute with that software versus credit karma now credit karma when you dispute within a software they basically
wave any
Rebuttal that you can give that the rcra
Basically give you the right to do
now the sa give you a right to rebuke, I mean
um with you a lot of different ways when it comes to things on a credit report and if you dispute online
credit karma, basically and transgender basically waive those rights and it's in the um,
the terms and agreements
now
another thing that makes the credit karma and the myfico app completely different is that
They don't show you your account number
So if you click on any of the dead or any of the derogatory marks or any
Of the accounts that you have on your credit report. They're not going to show you
Any account number now if you are in the dispute process?
you actually need those account numbers to put on the letters when you send out those dispute letters, so
Like like I said add-on if you are disputing
make sure that you add the account number on the letter but
Like I said credit comma don't give you that information
I don't know why but they just don't have that information on the platform
They don't have any of the account numbers associated with the accounts
now one of the good things that I do like about credit karma is
They actually do show you why your score go down. So if you click
on
the main screen and if you click on one of the two scores
once you click on one or two the two scores it's going to
Have a button at the bottom and on the next page and it's going to say
See what's changed now if you click that
This is a very powerful feature guys because any time that your score go up and down
You could use this feature to give you a better understanding on what happened to your credit score on the fluctuation. So
you can use this you can see this and if you scroll down here you'll be able to see that credit karma is giving
this account holder
Accurate information on why they score is going down in different
Months and for different reasons, so it's a very powerful
Tool within the credit karma app. I love it. I use it all the time when it comes to seeing a quick
A quick turnaround when it comes to a score
I log in and I see what has changed and I just absolutely love it
so guys if you use a credit karma use this tool if you ever
Want to understand a little bit better on why your score is going up or down
now
Let's dive into the my fico the my fico app a little bit. Let me um dive into
Their platform a little bit to show you
why mike fico is charging 40 bucks a month to use his software so
The first thing about the myfacal as you can see is that they show you all three of your credit reports
Right, they're showing you all three of the credit reports
in real time and
One thing that I love about my fico is is that they
Actually show you
Different credit scores for different institution that you're applying for. So let me explain so my fico basically
Shows different scores for different industries. So there's you have a mortgage
Score you actually have a auto score and you actually have a credit card scores then all three
Of those scores is different for all three of those industries. So that means if you apply
for a credit card a
auto
And a home all in the same day
All the same time you all get three different scores because you have three different scores for three different industries
And my fico shows you all three of those which is very powerful. So what I tell a lot of my clients
to do before they apply for
A home or a car or a big loan is to ask them
Call the call the institution to ask them. Who do you use? What bank do you use for?
Pulling credit a lot of them use experian
And if you know the experience you go to my cycle you go to what industry that you're applying for
And look at the experian report. It's an awesome
backdoor
underwriters basically platform because my fico
Is the same algorithm and platform that lenders use so it's very very powerful and that's why it's expensive
Because they actually show every description
Of your credit report for each individual industry that you can possibly apply to
Which is very very powerful and to give you a more accurate description
Obviously it's going to show all the of the account numbers which credit karma doesn't
and
It shows different credit reports and different scores like the industry, which is a very powerful product
So guys the difference between the two is a lot, you know one is free
And one isn't one shows you a very detailed description of your credit report and one shows you
A vague description of the credit report, but it's free and it also gives a lot of um different tools
Now guys i'm gonna give you another add-on another thing that I like about credit
Karma, is they give you a full breakdown in an easily simplified form within a back office?
They show you all different the all of the steps that makes up your credit report. You know, they show
All the percentages all of the breaks down to make it for credit reports, which is payment history utilization
credit age
Inquiries
and
Types of credit so they show all of that within their back office
Which is great to show you where you place within those
different entities and what you need to work on so credit karma has a lot of value especially for it to be free, but
if you are in a process of
Applying for a large loan. I would go with the my fico route so I can get a better detailed description
Of my credit report in real time. I would like to see what the lenders are seeing
So I won't get any surprises and I won't waste the inquiry on my credit report guys if you find any of this information
Helpful, please like and subscribe to the channel
So you can learn more information about this and I can produce more information about this guys
My name is credit coach q until next time please. Take care