Why is Your Credit Karma Score Different?
Folks are always asking me: “Ryan why in the world is the Credit Karma score that I get a hundred and fifty points higher than what was given to me by my mortgage broker?”
The reason is simple; there are literally hundreds of different credit score algorithms or calculations out there today.
Typically the consumer credit score (the one you get from places like Credit Karma or freecreditreport.com) is going to be significantly higher than what a mortgage broker pulls. The reason for this is that those algorithms are strict and get updated more frequently. So even with the exact same information on your report depending on where it’s pulled you’re going to get a very different score.
The other consideration is that not all creditors report to all 3 bureaus.
So why did I have three different scores with each credit bureau? Your TransUnion score was a 681 Experian is a 670 and Equifax was a 593. Why is there that big of a discrepancy between the three credit bureaus?
The answer is simple; not all things report to all three credit bureaus. For instance, if you have a collection account that’s with a small local collection agency and they may only choose to report to one of the three bureaus. For the example, I just gave we will say that was Equifax. That’s why the score is so much lower with Equifax.
Understand not all things report to all three bureaus and remember that if you see a single report drop.
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