Why is my bank turning up a different credit score than what's being displayed on Credit Karma?
So my Equifax Score is 630 and my Transunion score is 631 according to credit karma. I've been opening secured loans and paying off/disputing my debts for years to get it where it is.
But when I applied for an FHA home loan the other month, my credit score came back as being around 420. They said they used the standard service that every mortgage lender uses (including 1 I'd never heard of), and that's what my "average" score came back as.
What in the heck is going on here?
- StephenWeinsteinLv 75 months agoFavorite Answer
Because Credit Karma makes up its own scores that are only available on its website and are not used by any banks, anywhere in the world.
When you apply for a home loan, the bank calculates scores using the "FICO" formula, which is completely from what Credit Karma does. They may be basing the score of the same credit report, but the similarity ends there. Credit Karma uses its formula, which is different, and gives a different result.
- Badge 203Lv 45 months ago
They average your scores, and use another formula to obtain your score. But even with a score in the 600's you would be hard pressed to find a lender to finance a home. Your disputing bad accounts is also wearing out. And disputes do get a resolved in 60 to 90 days, and then go back on your score. I am betting your credit game caught up with you
- ntLv 65 months ago
My scores vary by usually 2-7 points. Way back when i had a credit card balance the differences were as high as 15-20 points but mostly because of the timing of when the reports were pulled.
One score was a good bit higher but when I looked into it, that score was using a higher scale. That one has since changed so my scores are all closer now.
Things like inquiries, balances and so forth can add up depending on the pull dates but in the intermediate term, there are no big differences.
- NeverLv 75 months ago
There are minor differences between scores. Not enough for me to actually PAY for a real score.
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- No MercyLv 75 months ago
i see the problem here - instead of PAYING your debt u prefer to DISPUTE it. and then u wonder why no one wants to land u the money
- A HunchLv 75 months ago
There is a credit score called FICO.
This is the back-bone of the credit reporting systems. If a lender is paying the FICO company to have their credit score calculation, then you will get the FICO credit score.
But Equifax is using the Equifax create reporting system which may be a little bit different than another companies. And Transunion is using the Transunion create reporting systems which is a little bit different than other companies. And to add another twist to it - Credit Karma might be adding their own spin to it which makes it different that Credit Sesame. And Credit Karma & Credit Sesame may both be different than Identity Guard.
Now to make it even more confusing different types of lenders also put there own spin on it: credit cards, car loans, mortgages, etc are all slightly different.
Stop worrying so much about the "specific" score and worry about what is on the report.
- no negative transactions like late payments, repos, charge off, judgements etc.
The lender who ran the credit score for your mortgage, should provide you a copy of the credit report. You can read it to find out what brought your score down.
Regardless of whether your score is 630 or 420, you are in no position to be getting a mortgage.
- ErikLv 75 months ago
Maybe they used FICO. My FICO score is 30 points higher than my Vantage score (Equifax/Transunion).