Posts: 101
Registered: ‎04-28-2009
Re: Credit Karma, is it good or bad?

teenastie wrote:

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 Smiley Wink

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.

AmEx Blue Cash Everyday - $1,100 - need CLI or will close
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