How Does Credit Karma Compare to Your Actual Credit Score?

Credit Karma hooks users up with free credit reports, but they aren’t always an accurate representation of how lenders see you. If you’re using Credit Karma to improve your credit or monitor potential issues, your data is safe. If you’re using it to see if you’ll qualify for low interest on that car loan, you’ll need to get a copy of your FICO score instead.

Read on to learn about how Credit Karma evaluates your credit score and what Credit Karma does to ensure your security. We’ve also put together the best identity theft protection services you can use to protect your credit and identity.

How reliable is Credit Karma?

Credit Karma is a quick way to check on your credit and anything that may affect it, but it may not be a reliable way to evaluate your ability to take out a loan. This is because your scores on its platform can differ greatly from what lenders see. Most lenders will look at your FICO score, but Credit Karma uses the VantageScore 3.0.

If you’re using Credit Karma to evaluate your creditworthiness, you may want to consider other sources as well. Checking your FICO score is the best way to check how a lender will see you. FICO scores are available on your annual free credit report.

VantageScore vs FICO

VantageScore and FICO use similar methods of reporting your credit score, but they aren’t the same. VantageScore updates more frequently, while FICO has a more stable form of evaluation. FICO outlines a quantitative scoring process, which is why it’s probably the preferred reporting method for lenders.

How FICO calculates scores:

• Payment history (35%)
• Credit utilization (30%)
• Length of credit history (15%)
• Mix of credit accounts (10%)
• New credit accounts (10%)

How VantageScore calculates scores:

• Payment history (40%)
• Credit utilization (20%)
• Length of your credit history and your mix of credit accounts (21%)
• Amounts you owe (11%)
• Recent credit behavior (5%)
• Available credit (3%)

There’s no official way to compare VantageScore 3.0 scores to FICO. Sometimes it may work out similarly, other times it may be completely off. The best way of checking your creditworthiness is to just obtain your FICO score.

Is Credit Karma safe?

Yes, Credit Karma is safe. The problem is that it may not be as effective as you hope. As far as security is concerned, its website has a robust and plain-language privacy policy.

• Promises not to sell or share your information with unaffiliated third parties.
• Uses 128-bit encryption (or higher) to transmit data.
• Has a dedicated incident response team to evaluate issues.
• Works with independent third parties and bug bounty programs.
• Uses external security auditing.

Any entity that allows for external, third-party evaluation and audits is as safe as it can be in our current tech environment. While nothing is infallible, third-party auditors and bug bounty programs mean you can trust the service is doing everything it can to remain a safe service that users can trust.

How to protect yourself from identity theft

You can safeguard your credit and identity by staying on top of your credit score. Services like Credit Karma are good for alerting you to changes in your credit, but you can go a step further by being proactive about your credit and identity monitoring.

• Keep your credit frozen unless you’re using it.
• Check your credit report as regularly as possible.
• Don’t give out information on calls, emails, texts, or websites you didn’t initiate the first contact with.
• Use credit and identity theft protection software.

Identity theft protection services

A credit and identity theft protection service takes the manual work out of monitoring your identity. Features differ by service and plan, but most will:

• Monitor your credit and financial information.
• Monitor anything linked to your SSN.
• Provide you with insurance and a remediation specialist in case of an incident.
• Give you actionable steps to securing your identity.

Here are some of our favorite providers:

FAQs

Bottom line

Credit Karma is a safe service that can give you a snapshot of your credit but may not be the best evaluation tool. If you’re looking to monitor and build your credit, including improving your credit score, Credit Karma has thoughtful tips and programs to help. If you’re evaluating your credit score to apply for a loan or other service, you’ll need to check your FICO score instead.

If you’re serious about monitoring your credit and protecting your identity, we suggest signing up for an identity theft protection program. The best programs monitor your identity and help if you ever become a victim. Identity theft can be a nightmare, and these services ease the pain.