Do you use Credit Karma to get your free credit score? Over 110 million members do. Credit Karma is an online credit service that provides actual credit scores pulled from two of the major consumer credit bureaus. What's the catch? Credit Karma allows you to monitor your credit information for free, but receives compensation from third-party advertisers and when customers are approved for loans or credit cards through their site.
Unfortunately, the Federal Trade Commission (FTC) just ordered the company to pay $3 million to their users. The FTC said that Credit Karma falsely claimed that consumers were "pre-approved" and had "90% approval odds" to get them to apply for a credit card. According to the FTC, nearly one-third of people who applied for those offers were ultimately denied and that misrepresentation impacted their credit scores. Credit Karma said it disagrees with the FTC but is settling to avoid disruptions. While Credit Karma, which is owned by Intuit , is one of the most popular free credit score sites, here are three other ways you can get your score for free.
Credit score vs. credit report
Your credit score is one of the most important financial numbers in your life. Financial institutions use it to determine whether you qualify for a loan or a credit card, as well as your interest rate. Your score can also determine how much you pay for your insurance premiums and many employers and landlords pull your credit as part of the screening process.
Your credit report, on the other hand, lists your bill payment history, loans, current debt, and other financial information. It shows where you worked, lived, and whether you've been sued, arrested, or filed for bankruptcy.
Federal law gives you the right to get a free copy of your credit report every 12 months. Through Dec. 2022, everyone in the U.S. can get a free credit report each week from all three nationwide credit bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com. It is important to note that your credit report and credit score are two different things.
Free credit reports provided by the nationwide credit reporting agencies do not include credit scores. While you are entitled to a free credit report, you are not entitled to a free credit score. To get your score you can buy it from one of the three major credit reporting agencies or other third-party companies that use one of the credit bureaus. Be careful of programs offering "free scores" if you enroll. They may offer a free trial period, but they are generally not really free. Credit Karma was one of the first sites to offer a free credit score. Here are other sites where you can also get a free score.
Experian
Experian is one of the three major credit bureaus. Experian allows you to get your FICO Score for free. Checking your credit score is considered a soft inquiry and will not lower your credit scores. If you want your VantageScore, a credit score that was developed by the three national credit bureaus, you will have to pay $7.95.
Credit Sesame
Credit Sesame is a credit and loan company, similar to Credit Karma. You can get your free credit score from TransUnion with a free Credit Sesame account. You can upgrade to a premium Credit Sesame plan for credit report and credit score info from all three bureaus. Like Credit Karma, Credit Sesame earns a small fee from financial institutions, but only after you close on a loan or credit card.
Your credit card company
Your credit card company may provide a free score. The following card issuers do:
- Capital One
- American Express
- Discover
- Citi
- Chase
In some cases, you don't have to be a customer to enroll. You can sign up and receive your weekly TransUnion credit score reports from Capital One even if you don't have a Capital One card. Chase also gives you a free credit score with Chase Credit Journey. It's free for everyone and you don't have to have a Chase account. Chase Credit Journey uses VantageScore 3.0® by Experian. Contact your credit card companies to see if they offer a free credit score.
With so much at stake, it is important to maintain a good credit score. Checking your credit score frequently will help you better understand your current financial situation. It can also help you detect any inaccurate information. These three ways to get your score are worth using to monitor your credit to ensure it is healthy!
FAQs
The atypical scoring model used by Credit Karma, coupled with the absence of information from Experian, the third of the three major credit reporting agencies, tends to make Credit Karma scores differ from scores pulled by other companies and financial institutions.
What are 3 ways to find out your credit score? ›
Here are a few ways:
- Check your credit card, financial institution or loan statement. ...
- Purchase credit scores directly from one of the three major credit bureaus or other provider, such as FICO.
- Use a credit score service or free credit scoring site.
The atypical scoring model used by Credit Karma, coupled with the absence of information from Experian, the third of the three major credit reporting agencies, tends to make Credit Karma scores differ from scores pulled by other companies and financial institutions.
Is there a way to get all 3 credit scores for free? ›
To request all three credit bureau reports for free, visit annualcreditreport.com. Click the “Request your free credit reports” button and follow the three steps to get your credit reports. You'll need to fill out a form and choose the credit reports you want to receive.
Does Credit Karma show all 3 credit scores? ›
Credit Karma works with Equifax and TransUnion, two of the three major consumer credit bureaus, to give you access to your free credit scores and free credit reports. (Experian is the third major consumer credit bureau.) Credit Karma can offer free credit scores and reports because we make money in other ways.
How can I check my credit score quickly? ›
There are a few main ways to get your credit scores.
- 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.
Fortunately, checking your own score is considered a soft inquiry, so it doesn't hurt it.
- Get free credit reports directly from the credit bureaus. ...
- Use a free credit score app or website. ...
- Check if your bank or credit card provider already offers free credit score monitoring.
Overall, Credit Karma may produce a different result than one or more of the three major credit bureaus directly. The slight differences in calculations between FICO and VantageScore can lead to significant variances in credit scores, making Credit Karma less accurate than most may appreciate.
How far off is Credit Karma from FICO? ›
However, its accuracy can vary based on several factors. Credit Karma uses VantageScore 3.0 from TransUnion and Equifax, which can differ from the FICO scores most lenders use. While it provides a useful estimate of your credit health, the scores on Credit Karma might be 20 to 25 points off from your actual FICO score.
Why is Credit Karma in trouble? ›
In September 2022, the FTC announced an enforcement action against Credit Karma, alleging that the company used claims that consumers were “pre-approved” for a credit card or had “90% odds” of approval to entice them to apply for offers that, in many instances, they did not qualify for.
Build a credit history
- Open and manage a current account responsibly, sticking to any agreed overdraft limit.
- Pay your bills on time; consider using Direct Debits to avoid missed payments.
- You could apply for a credit builder credit card and pay it off in full each month.
One of the best ways to access your FICO® credit score for free is through Discover Credit Scorecard. This program is free whether you are a Discover customer or not. To get started, you'll be asked for some personal information, including your Social Security number.
How to get a 100% credit score? ›
Make regular payments on time
Paying your accounts on time and in full each month is a good way to show lenders you're a reliable borrower, and capable of handling credit responsibly. Old, well-managed accounts will usually improve your score - although be sure to read about the potential impact of unused credit cards.
Should I trust Credit Karma? ›
The credit scores and credit reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. They should accurately reflect your credit information as reported by those bureaus — but they may not match other reports and scores out there.
Why is my FICO score so much higher than Credit Karma? ›
This is because Credit Karma makes use of another credit scoring model compared to many lenders and possibly does not have access to all the data required to calculate your credit score.
Is 650 a good credit score? ›
A 650 credit score is generally considered “fair.” A score in this range may limit you from certain financial opportunities. Payment history, monitoring your credit and lowering your credit utilization ratio can be helpful ways to improve this score over time.
What are the 3 types of credit scores? ›
Yes, there are three main types of credit scores: FICO® scores, VantageScore®, and insurance scores. In each case, your credit score is a three-digit number that represents your creditworthiness. Credit scores are based on a history of your credit accounts, including: Mortgage loans.
What 3 things make up your credit score? ›
FICO Scores are calculated using many different pieces of credit data in your credit report. This data is grouped into five categories: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%).
How are all 3 credit scores calculated? ›
Credit scores are calculated using these five key factors from data gathered in your credit reports: Payment history, amounts owed, length of credit history, new credit and credit mix. We'll explore the five factors and examine how they impact your credit score in depth below.
What 3 credit bureaus determine your credit score? ›
Credit scores provided by the three major credit bureaus -- Equifax, Experian and TransUnion -- may also vary because not all lenders and creditors report information to all three major credit bureaus. While many do, others may report to two, one or none at all.
