Credit Karma vs. Experian

Credit Karma vs Experian

Credit Karma or Experian? Is one better than the other? How are they different? We will be going over everything you need to know about Credit Karma and Experian. 

Maintaining a clean credit report and a favorable credit score are two related conditions that require every utmost dedication and unwavering commitment to achieving financial well-being. Information is the cornerstone of all these actions and decisions hence the need for appropriate tools. Credit Karma and Experian are two financial management platforms most commonly used to report and measure your credit. 

Credit Karma 

Credit Karma’s business model works around providing credit stability for its registered members and clients via www.CreditKarma.com. A registered member can access credit scores and credit reports from TransUnion and Equifax, two of the three main credit reporting bureaus in the country. 

Credit Karma conducts its business exclusively on the digital platform making its accessibility easy and broad because of its online presence. Members can sign up and constantly monitor their credit details for free. Upon joining, users are permitted to register their banking and credit accounts. 

Credit Karma’s interlinked algorithm can display the accounts’ details, offering the ease to analyze and plan on credit building and financial planning to maintain a favorable credit score and general financial health. Accessibility is greatly improved and optimized on mobile platforms as there exists a user-friendly mobile application that runs on android and iPhone operating systems. 

Credit Karma also issues credit alerts should there be any suspicious change on the credit report. This aspect reinforces financial vigilance and forestalls identity theft. It provides financial calculators and free education materials on personal credit management. Constant reviews also enable users to make informed decisions about their finances.

Related: How Often Is Credit Information Updated On Credit Karma?

Does Credit Karma hurt your credit? 

Using Credit Karma will not hurt your credit score as they check your score using soft inquiries. Only hard inquiries, used by such merchants as  banks, and auto dealers, will affect your credit score. Hard inquiries are when lenders access your credit report and review your application before lending money. 

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Credit Karma Cost 

 Also, from the user’s standpoint, Credit Karma is entirely free. Free credit scores, free credit reports, and free credit monitoring and alerts. If you get a product through one of Credit Karma’s recommendations, the bank or lender pays Credit Karma. The Credit Karma website gives credit ratings and strives to help you improve them. One can also file federal taxes and state returns for free via Credit Karma.

 Experian

Apart from being one of the three main Credit Reporting bureaus, Experian offers credit services, marketing services, decision analytics, and consumer education and enlightenment services. 

The Experian platform offers free credit reports, downloaded in PDF format.  There is also an option for free credit scores. Registered members can use the Experian hotline to speak to a real person and consult about their concerns about Credit and their credit reports. 

Experian offers Experian Boost, where you can link the bills and subscription services you are using such as Netflix, Hulu, AT&T, to boost your credit score. 

Like Credit Karma, the website provides an interactive platform with financial counsel materials and how-to-do-it audiovisual components. Every Wednesday at 3:00 p.m. Eastern Time, there are live programs streamed on social media networks to manage one’s Credit. Experian offers the FICO Score.

What is a good Experian score?

A good Experian score is generally anything above 700. 

Bad – 300- 579

Fair – 580 – 689

Good – 670 – 739

Very Good – 740 – 799

Excellent – 800 – 850

Experian Cost

Experian, on the other hand, typically generates the FICO score and is not entirely free. A package consisting of Credit reports from the three bureaus (Experian, TransUnion and Equifax) and a FICO can be accessed at $39.99. This pack included credit factors that raise or lower your scores.

Why is my Credit Karma score different from Experian?

Credit Karma generates a Vantage Score while Experian issues the FICO score.

Credit Karma consolidates and offers a Vantage credit score from TransUnion and Equifax. A Vantage credit score is a rating developed by the three reporting companies to reflect an individual’s creditworthiness. 

The most influential elements in the calculation of a Vantage score are the person’s payment history and the age and type of Credit. Other elements are the amount consumed from the credit limit, the current debt, recent credit inquiries and available Credit. 

Vantage Score is different from the FICO score, which requires a calculation based on more than one account and six months. Vantage Score is updated weekly and can use data from one month. The Credit Karma website issues Credit reports belonging to TransUnion and Equifax bureaus. Credit Karma, however, doesn’t issue the FICO score. Credit Karma also does not give Experian Credit reports.

Related: Credit Karma vs FICO Score 

VantageScore Factors 

  • Total credit usage, balance and available credit: Extremely influential
  • Credit mix and experience: Highly influential
  • Payment history: Moderately influential
  • Age of credit history: Less influential
  • New accounts opened: Less influential

FICO Score Factors 

  • Payment history: 35%
  • Amounts owed: 30%
  • Length of credit history: 15%
  • Credit mix: 10%
  • New credit: 10%

Which Credit Report is More Accurate?

While there are different scores, models and calculations for each score, 90% of lenders in the United States use the FICO score to determine creditworthiness. 

Is Credit Karma or Experian More Accurate? 

Since 90% of major lenders use the FICO score, checking to make sure your FICO score is correct should be a priority. Experian, which is one the three major credit bureaus, uses the FICO score, while Credit Karma uses the Vantage Score. So checking your score on Experian will be more accurate according to lenders. Both scores should be close, so if you notice a big difference between the two you should investigate as there is most likely an error. 

Whether you decide to use Credit Karma or Experian is your personal choice. What you should focus on more about is your credit score. If you have a bad credit score you should try to increase your score to give you the best odds at getting approved for your dream home, buying a car, getting an engagement ring, applying for a home renovation loan or a personal loan. All of these life goals that we work so hard for can be achieved with good credit. 

The Easiest Ways To Increase Your Credit Score


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