Credit Karma is a well-liked site for checking credit scores, but it is essential to note what it is all about and its shortfalls in accuracy, such as:
Type of Credit Score
VantageScore vs. FICO: Credit Karma provides VantageScore, which is just one of many credit models available, such as FICO scores, that many lenders deem important when determining potential borrowers. Simply put, scores will vary based on the model in question.
Data Sources
Credit Reporting Agencies: Credit Karma gets this information from two major credit agencies, TransUnion and Equifax. The results may differ if a lender relies on Experian (the third agency related above) or utilizes a specific scoring system.
Timing and Updates
Real-Time Updates: Scoring is regularly updated by the team at Credit Karma. However, there may be certain delays in receiving reports from creditors. If you have made any recent adjustments to your credit, including those who pay their invoices on time or those who make debts, that would not be updated in Credit Karma.
Different Criteria
Lender Evaluation: Lender evaluations will not only be based on credit scores but also on other elements like debt reports, debt-to-income ratios, employment duration, and many others. The net effect of such evaluations can differ from what is displayed on Credit Karma.
Although Credit Karma is a great resource for tracking your credit or getting a general idea, it may not provide you with the score that a lender would look for. For more accurate estimates, it would be wise to check your FICO score or access your full credit reports from all three credit reporting agencies.