Re: Credit Karma, is it good or bad?
11-14-2011 05:05 PM
I love CK.
The Good: It allows me to get an idea as to when my credit cards report to TU. I can also get my utilization, and I can see when a new TL reports to my CR. I recently had a new inquiry and CK advised me promptly and accurately.
The Bad: You cannot see your actual CR. So if a new TL shows it is difficult to know what exactly is reporting. Also, their card recommendations are less than stellar. According to them I only qualified for an Orchard card. If I followed their recommendations I would not have an Amex Zync, nor a new Barclays card.
The Ugly: The scoring is something to laugh at! CK's algorithms is geared towards revolving TL's. I started with 2 credit cards totaling $2600 with 20% reporting CK gave me a 667 credit score. I added one card with a $300 dollar limit and my score went up to 697 (with added inq). I closed that same account in a month and my score went down to 627 (utility went down to 9%). I recently opened a new revolving TL with $2500 balance the score went back up to 697 (16% utl reporting). Myfico score was a bit more consistent reporting in the 660-670 range.
I generally use CK as a guideline as to when I can check my Fico score or pull the trigger on a new TL. The service has it's uses however, scoring is NOT one of them. And I'm pretty sure Chase and Capital One have stock in their product!
As always YMMV
I don't know how their score works, but when my total credit line goes from 27k to 32k, and util went from 23% to 16%, my score went from 745 to 710.
BankAmerica Cash Rewards - $10,000
Chase Freedom - $10,000
Chase Sapphire Preferred - $5,000
Chase Ink Bold - $5,000
Citi Platinum Select - $2,600
Discover More - $4,000