Credit Karma Vs MyFico What's the Difference?! - YouTube

Have you ever wondered why credit karma and my fico scores are different

In today's video i'm going to explain the two and i'm going to explain why you probably need both cue the video

Hi guys credit coach q here in today's video i'm going to explain

credit karma

And my fico now if you if you're new to the channel

Please like and subscribe so you can learn credit tips and tricks on how you can put your credit repair experience into your own hands

now guys, one of the first major

differences between these entities is that one is

free free free

free one is free and

you can't beat that but

It does have its limitations. So one thing

Credit karma is completely free. You can sign up at any time. All you need is to put it in your personal

Information and you can get started with credit karma with no money down

No credit cards required now my fico they do charge a monthly subscription fee

I think it's around 40 bucks a month. Um, you probably want to recheck that it might have have changed but

It is not a free subscription

but

They don't have as many limitations as a credit card institution

Now with that being said they are both ran on two different algorithms, right?

credit calmer is using what is called a

vantage 3.0 system

If you log into your credit karma on the first thing that you see under your credit scores is vantage 3.0

Now my fico is using fico

algorithm, which is probably a fico 8 fico 9

and fico 10 is coming out recently, so

They use their own algorithm, which is the most accurate

algorithm

That lenders actually use so lenders actually use fico

They don't use vantage 3.0 and i'm going to explain the difference between the two so vantage 3.0 systems

Basically are an algorithm. That is a guess

From what your score is from what your credit?

Report is showing right?

So what basically credit karma does is that they basically take a screenshot of your credit report and come up with a score based?

off what your credit report

Showing so whatever you are showing your credit report currently

Credit karma or vantage scoring system basically will come up with a a score that they are guessing

Best fits the description of what's on your credit report at the time. So it's basically a guess. That's why you don't have to pay

For a monthly subscription because you are basically getting a guesstimate of what your score is now. I want to also

Advise you guys that if you are using credit karma credit karma has been known to be off

Between 40 to 60 points from what your actual score is

now

another thing

Number two when it comes to the second most

Differences of the the two institutions is credit karma only uses two credit bureaus

Whether my fico actually uses

All three credit bureaus so you own you have three credit reports trans union equifax and mike

current transunion equifax and experian and

credit karma is currently only using

Transunion and equifax. They are not using experian at the time. So

You're basically in the dark when it comes to credit karma because a lot of institutions and a lot of banks only use experian

When it comes to pulling your credit report

And if you don't know what your experience score or report is then you're basically in the dark when it comes to you

Applying to any type of loans or any type of funding because you don't know what that is

so make sure that you are getting

An experian account some way form a fashion because credit card is not going to give it to you

now

another thing

that makes these things different between

the two of them is

You can dispute

items directly within the back office of your credit karma account

Which is kind of awesome if you ask me, so yes credit karma has partnered up with trends union to allow

You to dispute items

Online directly within their software. All you have to do is

pinpoint one

item

and

I'm gonna add that you only can dispute one item at a time

You cannot dispute multiple items or a bulk of items

You want to dispute one item at a time per month or per investigation?

But you click on the account that you are wanted to dispute

They give you a series of dispute reasons you click those and you put your dispute in

Now I some disputes have got removed. I have heard that but I want to give you also an add-on

That if you are disputing

Online you are waiving your fcr rights now

at

We created a amazing software that allows you to do everything yourself

You can dispute over 150 items that's negative on your credit report for 100 different reasons

The software allows you to do everything step-by-step. It's a four-step process

The link is in the bio for you to sign up with that for a dollar now

That software is completely different from credit karma or transunion

and

You keep all your fcra

rights, when you dispute with that software versus credit karma now credit karma when you dispute within a software they basically

wave any

Rebuttal that you can give that the rcra

Basically give you the right to do

now the sa give you a right to rebuke, I mean

um with you a lot of different ways when it comes to things on a credit report and if you dispute online

credit karma, basically and transgender basically waive those rights and it's in the um,

the terms and agreements

now

another thing that makes the credit karma and the myfico app completely different is that

They don't show you your account number

So if you click on any of the dead or any of the derogatory marks or any

Of the accounts that you have on your credit report. They're not going to show you

Any account number now if you are in the dispute process?

you actually need those account numbers to put on the letters when you send out those dispute letters, so

Like like I said add-on if you are disputing

make sure that you add the account number on the letter but

Like I said credit comma don't give you that information

I don't know why but they just don't have that information on the platform

They don't have any of the account numbers associated with the accounts

now one of the good things that I do like about credit karma is

They actually do show you why your score go down. So if you click

on

the main screen and if you click on one of the two scores

once you click on one or two the two scores it's going to

Have a button at the bottom and on the next page and it's going to say

See what's changed now if you click that

This is a very powerful feature guys because any time that your score go up and down

You could use this feature to give you a better understanding on what happened to your credit score on the fluctuation. So

you can use this you can see this and if you scroll down here you'll be able to see that credit karma is giving

this account holder

Accurate information on why they score is going down in different

Months and for different reasons, so it's a very powerful

Tool within the credit karma app. I love it. I use it all the time when it comes to seeing a quick

A quick turnaround when it comes to a score

I log in and I see what has changed and I just absolutely love it

so guys if you use a credit karma use this tool if you ever

Want to understand a little bit better on why your score is going up or down

now

Let's dive into the my fico the my fico app a little bit. Let me um dive into

Their platform a little bit to show you

why mike fico is charging 40 bucks a month to use his software so

The first thing about the myfacal as you can see is that they show you all three of your credit reports

Right, they're showing you all three of the credit reports

in real time and

One thing that I love about my fico is is that they

Actually show you

Different credit scores for different institution that you're applying for. So let me explain so my fico basically

Shows different scores for different industries. So there's you have a mortgage

Score you actually have a auto score and you actually have a credit card scores then all three

Of those scores is different for all three of those industries. So that means if you apply

for a credit card a

auto

And a home all in the same day

All the same time you all get three different scores because you have three different scores for three different industries

And my fico shows you all three of those which is very powerful. So what I tell a lot of my clients

to do before they apply for

A home or a car or a big loan is to ask them

Call the call the institution to ask them. Who do you use? What bank do you use for?

Pulling credit a lot of them use experian

And if you know the experience you go to my cycle you go to what industry that you're applying for

And look at the experian report. It's an awesome

backdoor

underwriters basically platform because my fico

Is the same algorithm and platform that lenders use so it's very very powerful and that's why it's expensive

Because they actually show every description

Of your credit report for each individual industry that you can possibly apply to

Which is very very powerful and to give you a more accurate description

Obviously it's going to show all the of the account numbers which credit karma doesn't

and

It shows different credit reports and different scores like the industry, which is a very powerful product

So guys the difference between the two is a lot, you know one is free

And one isn't one shows you a very detailed description of your credit report and one shows you

A vague description of the credit report, but it's free and it also gives a lot of um different tools

Now guys i'm gonna give you another add-on another thing that I like about credit

Karma, is they give you a full breakdown in an easily simplified form within a back office?

They show you all different the all of the steps that makes up your credit report. You know, they show

All the percentages all of the breaks down to make it for credit reports, which is payment history utilization

credit age

Inquiries

and

Types of credit so they show all of that within their back office

Which is great to show you where you place within those

different entities and what you need to work on so credit karma has a lot of value especially for it to be free, but

if you are in a process of

Applying for a large loan. I would go with the my fico route so I can get a better detailed description

Of my credit report in real time. I would like to see what the lenders are seeing

So I won't get any surprises and I won't waste the inquiry on my credit report guys if you find any of this information

Helpful, please like and subscribe to the channel

So you can learn more information about this and I can produce more information about this guys

My name is credit coach q until next time please. Take care