Which is more accurate, Credit Karma or Experian?
Experian vs. Credit Karma: Which is more accurate for your credit score? You may be surprised to know that the simple answer is that both are accurate. Read on to find out what's different between the two companies, how they get your credit score, and why you have more than one credit score to begin with.
Experian vs. Credit Karma: Which is more accurate for your credit score? You may be surprised to know that the simple answer is that both are accurate. Read on to find out what's different between the two companies, how they get your credit score, and why you have more than one credit score to begin with.
This is mainly because of two reasons: For one, lenders may pull your credit from different credit bureaus, whether it is Experian, Equifax or TransUnion. Your score can then differ based on what bureau your credit report is pulled from since they don't all receive the same information about your credit accounts.
The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.
Which of the 3 Credit Bureaus Is the Best? Of the three main credit bureaus (Equifax, Experian, and TransUnion), none is considered better than the others. A lender may rely on a report from one bureau or all three bureaus to make its decisions about approving a loan.
They may differ by 20 to 25 points, and in some cases even more. When Credit Karma users see their credit score details, they are viewing a VantageScore, not the FICO score that the majority of lenders use.
Your FICO Score is a credit score. But if your FICO score is different from another of your credit scores, it may be that the score you're viewing was calculated using one of the other scoring models that exist.
Here's the short answer: The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus.
Although there isn't a bank that exclusively uses Experian, some banks that typically use Experian data more commonly include American Express, Bank of America, and Wells Fargo.
Checking your own credit report or score won't affect your credit scores. It's an example of a soft inquiry—a request for credit info that does not affect credit scores. Experian, TransUnion and Equifax now offer all U.S. consumers free weekly credit reports through AnnualCreditReport.com.
Which credit score do most creditors look at?
FICO scores are generally known to be the most widely used by lenders.
For the majority of lending decisions most lenders use your FICO score. Calculated by the data analytics company Fair Isaac Corporation, it's based on data from credit reports about your payment history, credit mix, length of credit history and other criteria.
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750.
Why is my Experian credit score different from Credit Karma? To recap, Credit Karma provides your Equifax and TransUnion credit scores, which are different from your Experian credit score.
When the scores are significantly different across bureaus, it is likely the underlying data in the credit bureaus is different and thus driving that observed score difference.
Key Takeaways: While you can find financing with any credit score, a good credit score for a car loan is usually between 670 and 850. Your credit score is affected by many factors including payment history, amounts owed/utilization, length of credit history, credit mix, and new credit.
Although VantageScore's system is accurate, it's not the industry standard. Credit Karma works fine for the average consumer, but the companies that will approve or deny your application are more likely to look at your FICO Score.
The reason is, Credit Karma utilizes the VantageScore 3.0 model, which could be dissimilar from the FICO score usually adopted by lenders.
Information from Experian is just as accurate as info from the other two major credit bureaus (Equifax and TransUnion), and products like Experian Boost aim to help the roughly 50 million people in the U.S. with little-to-no credit history get credit scores that accurately reflect their credit risk.
Credit score and mortgages
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
What day of the month does Experian update?
Each month: Credit Card A reports your payment and balance information to Experian on the first, to TransUnion on the 10th and to Equifax on the 20th. Credit Card B reports to Experian on the seventh of the month, to TransUnion on the 15th and to Equifax on the 24th.
| FICO Score Ranges | Rating |
|---|---|
| 580-669 | Fair |
| 670-739 | Good |
| 740-799 | Very Good |
| 800+ | Exceptional |
As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.
- Check your credit card or other loan statement. Many major credit card companies and other lenders provide credit scores for their customers. ...
- Talk to a nonprofit counselor. ...
- Use a credit score service.
Although Experian is the largest credit bureau in the U.S., TransUnion and Equifax are widely considered to be just as accurate and important. When it comes to credit scores, however, there is a clear winner: FICO® Score is used in 90% of lending decisions.
