Why is my Credit Karma score not accurate?

Why is my Credit Karma score not accurate?

Credit scoring is not monolithic. Different agencies use varying models (like FICO and VantageScore), resulting in diverse scores depending on the specific algorithm and intended purpose—mortgage, auto loan, or general credit assessment. Thus, expecting consistent scores across platforms is unrealistic.

Credit Karma uses the VantageScore model, while many lenders use the FICO score. The two models use different algorithms to calculate credit scores, which can lead to different results. Additionally, Credit Karma may not have access to all of the information that lenders use to calculate FICO scores, which can also lead to different results.

Here are some of the reasons why your Credit Karma score may not be accurate:

• You have different credit accounts. Credit Karma only has access to the credit accounts that you have linked to your account. If you have other credit accounts that are not linked to your Credit Karma account, those accounts will not be included in your Credit Karma score.
• Your credit report contains errors. Credit reports can contain errors, which can impact your credit score. If you believe that your credit report contains errors, you should contact the credit reporting agencies to dispute the errors.
• Your credit utilization is high. Credit utilization is the amount of credit that you are using compared to your total credit limit. High credit utilization can negatively impact your credit score.
• You have recently applied for new credit. Applying for new credit can temporarily lower your credit score. This is because each time you apply for new credit, a hard inquiry is placed on your credit report. Hard inquiries can stay on your credit report for up to two years.

If you are concerned about the accuracy of your Credit Karma score, you should contact Credit Karma for more information. You can also obtain a free copy of your credit report from each of the three major credit reporting agencies (Equifax, Experian, and TransUnion) once per year.