Credit Karma vs FICO

Whether you’re fixing your credit or just wanting to know where you stand, there are many credit score sites available that claim to offer free credit scores, between them there are two most popular sites, Credit Karma vs FICO. Here’s more information about their services.

Credit Karma
Currently, Credit Karma is one of the most popular sites, offering its members credit score updates, monitoring services, and personalized advice on how to improve your score. Credit Karma makes its money by offering promotions to its members from partner companies. For example, if you apply for one of the “personalized credit cards offers” they suggest to you using their link, they’ll get a kickback from that credit card company. While you can easily opt out of emails at signup, you’ll still get offers when you visit the website. Credit Karma’s Better Business Bureau rating is currently a B- which is likely due to 390 complaints filed within the last three years. Once you’re ready to open a Credit Karma account, what benefits do you receive? The website primarily centers around breaking down your credit information and analyzing the information to help you make financial decisions and gauge what areas might need attention. One of the most appealing features for many users is the access to free credit scores.

FICO
FICO, officially the Fair Isaac Corporation, is a credit-scoring company whose eponymous scores are the biggest competitors to Vantage. Over the last several years, there’s been an uptick in the number of credit card issuers and banks offering free FICO scores to their customers but there was always a catch — you had to have a credit card or a checking account to get your score. Discover is changing things up by offering a free FICO credit scorecard to anyone, you don’t to be a Discover account holder to qualify. Getting a look at your Discover credit scorecard and free FICO score is a relatively simple four-step process. There’s no credit card needed and in just a minute or two, you can see how your score adds up. With Discover’s free FICO score, there’s no catch. You don’t need to be a card member, and as long as you are willing to submit your personal information, you can see your score for free. This is most likely a result of a trend that’s happening within the financial industry, with respect to free credit scores.

Credit KarmaFICO
- Credit Karma is an independent website that, among many other features, gives users free access to their Vantage 3.0 credit score- FICO, officially the Fair Isaac Corporation, is a credit-scoring company whose eponymous scores are the biggest competitors to Vantage
- Credit Karma does not provide a true FICO score- Fair Issac company (FICO) is the only company than can calculate your actual FICO score
- Credit Karma uses a VantageScore- Discover (FICO) uses true FICO score

Conclusion
In conclusion, Credit Karma generally runs a lower number than the same services in the real world, in this case FICO. The two site use different math formulas. Credit Karma fully says over time, they have modified the math formula they use. In the real world, FICO has higher number than Credit Karma. Overall, to avoid confusion It looks like one should go directly to the both major credit reporting agencies to get their true Credit Score.

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