Which Is More Accurate: Experian or Credit Karma? - YouTube

What is more accurate Experian, or  Credit Karma? By the end of this episode,  

we're gonna go through the pros and cons  of each. Make sure you watch to the end.

In this episode, we're gonna dissect Credit Karma  and the credit scoring algorithm that they use,  

and why it's not necessarily relevant. We'll  also compare Experian and Credit Karma. I'll  

give you the rundown for each and the perks for  using each then we'll look at specific scenarios  

to find out which of these services would better  suit your needs. All right, let's get to it. Okay,  

let's start with Credit Karma? What I like about  Credit Karma is it gives you a credit score  

with just a click of a button. Another thing that  I really like about Credit Karma is it's literally  

opened up credit to millions and millions  of people, where before people were kind of  

confused about credit scores and also about credit  in general. Credit Karma opened up this world to so 

many people that probably never would have had the  opportunity to to look at or evaluate their credit  

and scores and what they're eligible to purchase  Credit Karma in terms of kind of how they operate,  

it's a free service. They don't have all three  credit bureaus, they only have TransUnion and  

Equifax. They don't have Experian, which is going  to be one of the biggest credit bureaus, they also  

use a less widely, I wouldn't say known because  it's well known but a less widely used scoring  

metric, and it's called Vantage score. Okay,  now in terms of experience website, they have,  

of course, the Experian Credit Report, but they  actually use Fico. And FICO is going to be the  

credit scoring algorithm that all lenders use.  In most cases, well, I'm not gonna say all that  

90% of lenders are going to use in most cases. And  I didn't want to get too much into the whole FICO  

algorithm versus the Vantage score algorithm.  I've created videos on both of those, okay,  

in terms of Experian, and the fact that they use  FICO. FICO actually uses a much broader base, or a  

much broader data set to calculate scores. There's  a whole lot more to that. But I'm not going to  

dive too deeply into that. When it comes to the  Credit Karma, they use a much thinner data set,  

when it comes to their vantage score algorithm. In  terms of cost credit, Credit Karma is going to always be  

free, they monetize off selling you financial  products. So remember, in this world,  

nothing truly is free. In fact, in economic  terms, there's a statement that says there's no  

such thing as a free lunch. And what that means  is is that if it's free, it's really not free,  

somebody's paying for int. In terms of Credit  Karma, you're paying for it when you click on  

that auto loan that they're recommending, or  that business card that they're recommending,  

or that personal card that they're recommending,  or that personal loan that they're recommending.  

Now, Experian does kind of the same things, they  do have a free service and allows you to see your  

Experian Credit Report, and also your FICO eight  benchmark score. Within FICO, there's hundreds of  

scores, the benchmark score is going to be if  there was a comparison, there's it's going to  

be comparable to your vantage score. One of  the things I really like about the experience  

service is you have the ability to upgrade,  of course for a fee, to get all three of your  

credit reports. Again, Credit Karma gives you  two for free Experian will give you all three,  

and then they also have the ability, if you go  with the experienced service to pull your industry  

specific scores. You're gonna be able to see your  auto loan scores, you're gonna be able to see one  

of your mortgage scores, you're gonna be able to  see your bank card scores, and then of course,  

all of your benchmark scores. With the experience Experian service, they're only going to show you the  

industry specific scores on your experience side  of things. So TransUnion and Equifax, you're not  

going to see your industry specific scores. For  those credit bureaus, you're gonna actually have  

to go through FICO. If you want to see those both  Credit Karma and Experian are fantastic at keeping  

you engaged. Both have a plethora of resources for  educational purposes. Again, they have your credit  

scores, and they have all kinds of different  bells and whistles that keep you coming back  

and keep you interested in their websites. One of  the primary differences is is that Credit Karma is  

free. Experian is going to cost you some money  if you want to upgrade to your industry specific  

scores and you want the full suite of services.  So kind of in summary Credit Karma is going  

to offer you educational resources, it's going  to offer you mobile access on your cell phone,  

which is very nice. It's getting new credit  card recommendations, loan recommendations,  

it's going to kind of give you a general idea of  what your credit looks like. Experian is gonna  

give you a much more detailed look at your overall  credit. It's gonna give you credit monitoring,  

it's gonna give you identity theft insurance,  it's gonna give you credit and loan matches,  

Dark Web surveillance, a car management hub,  and a credit summary that includes personalized  

suggestions. What I like about Experian is that  they offer a secondary service which you know,  

you can take it for what it is, it's called  Experian boost and it does allow you to add your  

utilities and your streaming services so it can help your credit scores depending  

upon what industry you're trying to purchase  in. Right now, there's a big movement to reach  

people haven't had access to credit. And they're  gonna start using more self reported things like  

this to actually grow out those scores. I do  like the service-ish. The one thing I don't  

like about Experian boost is that you have  to give them your bank account information  

so that they can pull that data. I'm not a fan of  giving the credit bureaus any more information,  

they've already got all of our information.  Many years ago, we had a breach with Equifax,  

I'm not sure that I'm on board with giving  them access to my bank accounts also,  

just a personal preference. Now before we go on,  I do want you to know that I'm not getting paid  

from Experian or Credit Karma, I'm simply just  giving you my opinion and the way the services  

both work. If you want more of my opinions, please  like this video and subscribe to my channel. I'll  

be working hard to bring you a video each  week day over credit lending real estate  

and other relevant personal finance topics. Okay,  now let's look at some different situations where  

the Experian service or Credit Karma might serve  you best. First off, if you're somebody who is new  

to credit, there is no doubt that Credit Karma is  a great starting place. For all the reasons that  

I've mentioned before. Even though the scores at  Credit Karma, the Vantage score isn't necessarily  

going to be the scores that lenders use when it  comes to qualifying you for any specific purchase.  

It's still a great beginning at kind of seeing  how things work, opening up credit to yourself  

seeing credit scores that may or may not be what  the lenders are pulling, but you kind of get an  

idea of what's going on. Now if you're a  little bit more of an experienced buyer.  

And you're in a situation where you're going to  make a purchase, whether it be for your auto loan  

purchase, whether it be for a home, or maybe  you're looking for a new high limit credit card,

Experian is going to be the better service  for you. And the reason is because they're  

going to have those industry specific scores  and those higher value tools, of course,  

you're going to have to pay for those scores.  Credit Karma doesn't cost anything but then you  

get what you pay for. You don't get the industry  specific scores that lenders are actually looking  

at. Because Experian uses FICO and FICO has  been around forever and it's the preferential  

credit scoring algorithm used in the United States  and most of the world, FICO is never going to give  

those scores away for free. In my opinion, if  you're okay with paying fees Experian is going  

to be the better service. It's going to give you  the widest scope of scores and the more in depth  

services. If you've had credit challenges,  or just need help with your credit then

have a gift for you. I'll have my team complete  a complimentary credit analysis tailored just for 

you. The only cost to you is going to be that you  purchase a smart credit report. This report gives  

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