topic Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc response in General Credit Topics

Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Anonymous — Thu, 22 Aug 2019 00:51:20 GMT

Hi all

4 months out of my BK7, I managed to get a Discover IT secured (did not burn them). I'm becoming far more serious about my credit and rebuilding it... I'm learning so much I never knew or was taught. Many thanks to the folks in this forum and others.

As I plod through this rebuilding process, I've started using all those sites/apps to keep tabs on my score, and because I've become somewhat obsessed, I decided to get Experian's program ($19.99/mo, daily Exp score, monthly EQ and TU) and use that as a recurring charge on that new Discover card and PIF each month.

But, it occurred to me after reading various places about being wary of FAKO scores, because they are not those used by banks and lenders, due to the Vantage score method used in their calculation, that why don't those companies use the REAL scores? Why would literally each one -- Nerdwallet, Credit Karma etc etc use FAKO scores and not real ones? It is suggested on these boards that we use them to guide or track our progress, but those sites do not actually claim that. In fact, it often seems like they think these are the real scores we should know. And they are consistent too: my TU score is the same across all of them.

Just wondering what your thoughts were about this...

Thank you and thanks for this great space to talk about rebuilding

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Jnbmom — Thu, 22 Aug 2019 00:59:59 GMT

@Anonymous wrote:
Hi all

4 months out of my BK7, I managed to get a Discover IT secured (did not burn them). I'm becoming far more serious about my credit and rebuilding it... I'm learning so much I never knew or was taught. Many thanks to the folks in this forum and others.

As I plod through this rebuilding process, I've started using all those sites/apps to keep tabs on my score, and because I've become somewhat obsessed, I decided to get Experian's program ($19.99/mo, daily Exp score, monthly EQ and TU) and use that as a recurring charge on that new Discover card and PIF each month.

But, it occurred to me after reading various places about being wary of FAKO scores, because they are not those used by banks and lenders, due to the Vantage score method used in their calculation, that why don't those companies use the REAL scores? Why would literally each one -- Nerdwallet, Credit Karma etc etc use FAKO scores and not real ones? It is suggested on these boards that we use them to guide or track our progress, but those sites do not actually claim that. In fact, it often seems like they think these are the real scores we should know. And they are consistent too: my TU score is the same across all of them.

Just wondering what your thoughts were about this...

Thank you and thanks for this great space to talk about rebuilding

These sites are "FREE" so you get what you pay for. And they can claim anything, but they are not FICO and most of not all lenders do not use them.

And I believe Exp's 19.99 is daily EXP, but quarterly EQ and TU, unless they changed it recently. You do however get alerts from all three.

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Anonymous — Thu, 22 Aug 2019 01:01:49 GMT

Right I get that. I'm just wondering why they ALL do it. Wouldn't you think even just one would offer a paid service/option to get your real score, because I assume it costs money? It's just weird to me that they all do FAKO and misrepresent the fact they they do it.

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Anonymous — Thu, 22 Aug 2019 01:03:45 GMT

It is monthly. I just checked my subscription

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Brian_Earl_Spilner — Thu, 22 Aug 2019 01:09:14 GMT

VantageScore was created by the big 3 bureaus as a competitor to FICO, in 2008. It's a real score, just not the one that's predominantly used. It has it's pros and cons just like FICO. To answer your question, it's probably cheaper for everyone to offer these scores rather than FICO. With VantageScore only being used in about 10% of lending decisions, it makes sense to me that they would be offered at a discount in order to increase its visibility and use.

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Anonymous — Thu, 22 Aug 2019 01:16:40 GMT

Thank you BES, that makes sense. I guess I'm not sure why someone doesn't make an app/web service that pulls your FICOs and then combine them with the useful services that those others provide.

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Jnbmom — Thu, 22 Aug 2019 01:33:03 GMT

@Anonymous wrote:
It is monthly. I just checked my subscription

Are you sure, I have the 19.99 and it's quarterly?

And on their website for 19.99 it states it is Quarterly for 3-Bureau Report & FICO Scores

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Anonymous — Thu, 22 Aug 2019 01:36:54 GMT

I just took a screenshot... Not sure how to share it here

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Jnbmom — Thu, 22 Aug 2019 01:38:04 GMT

@Anonymous wrote:
I just took a screenshot... Not sure how to share it here

Ok not sure but they have never given monthly access to reports AND scores for 19.99 a month?

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Anonymous — Thu, 22 Aug 2019 01:40:37 GMT

In the list of Premium features:
"Monthly 3-bureau Report and FICO scores"

I think I signed up from within the iOS app. I noticed a price difference. It was weird.

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Jnbmom — Thu, 22 Aug 2019 01:42:00 GMT

Hmm yeah I saw that at 24.99 a month as advertised?

I am gonna complain then I pay 19.99 for quarterly

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Anonymous — Thu, 22 Aug 2019 01:44:10 GMT

Experian Credit Works Premium

They also offer a 9.99 in the app and the free version

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

Andypanda — Thu, 22 Aug 2019 19:22:23 GMT

Having fako might prevent anti trust issues for fico.

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

AverageJoesCredit — Fri, 23 Aug 2019 01:53:38 GMT

Doesnt say Fico its Fako lol, just sayin

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc

iced — Mon, 26 Aug 2019 14:05:01 GMT

@Anonymous wrote:
Hi all

4 months out of my BK7, I managed to get a Discover IT secured (did not burn them). I'm becoming far more serious about my credit and rebuilding it... I'm learning so much I never knew or was taught. Many thanks to the folks in this forum and others.

As I plod through this rebuilding process, I've started using all those sites/apps to keep tabs on my score, and because I've become somewhat obsessed, I decided to get Experian's program ($19.99/mo, daily Exp score, monthly EQ and TU) and use that as a recurring charge on that new Discover card and PIF each month.

But, it occurred to me after reading various places about being wary of FAKO scores, because they are not those used by banks and lenders, due to the Vantage score method used in their calculation, that why don't those companies use the REAL scores? Why would literally each one -- Nerdwallet, Credit Karma etc etc use FAKO scores and not real ones? It is suggested on these boards that we use them to guide or track our progress, but those sites do not actually claim that. In fact, it often seems like they think these are the real scores we should know. And they are consistent too: my TU score is the same across all of them.

Just wondering what your thoughts were about this...

Thank you and thanks for this great space to talk about rebuilding

My two cents:

It's only a matter of time before the VS (aka "FAKO") scores get traction and start to become meaningful. The problem today is FiCO has largely monopolized the scoring market, which enables them to basically extort their exhorbitant fees for their service from lenders.

VS was created by a few lenders in direct response to this problem, and while it gained traction with the credit monitoring sites due to its free nature, getting lenders to change policies is a much slower process.

To be clear, lenders aren't not moving to VS because it's somehow inferior or wrong; it does weight some stuff differently so it can produce a different score from FiCO, but it's still a decent gauge of things. The outrage you hear around here is mostly around this difference, since they want to know what score they're being judged against, not a different model. It's like wanting to know what the questions on the test are going to be rather than trying to improve your actual knowledge on the subject, asking for a practice test, and getting one with questions different than what's on the actual test. Instead, I believe that lenders don't adjust to anything as sweeping as overhauling their approval processes overnight, or even overyear. It will happen eventually, and people are starting to report auto dealerships and few other small to medium financial institutions using VS to assess creditworthiness.

The number of people who actually have excellent VS scores and poor FiCO scores are very, very few. The tension seems to be with borderline cases where every 5-10 points matter for them. In my case, my VS scores are about 50 points higher than my FiCO scores, but it's not really making a difference in my acceptance so I'm fine. I've also attributed that difference to the fact that VS has no memory of my 6-7 year old lates while FiCO does. When they fall off in 2 months, I may well see my FiCO go up to nearly match my VS score as well.

Re: Why are they FAKO? Credit Karma, Nerdwallet, Credit Sesame, Wallet Hub, etc etc response

Anonymous — Mon, 26 Aug 2019 17:05:23 GMT

Wow very helpful response!!! Thank you!!