Friday, September 11, 2009

Unscientific Inquiry on Accuracy of Credit Karma's Credit Score

Credit Karma ( provides a free no-hassle credit score without the usual 30 days free bait followed by extravagant automatic enrollment. Instead, it recuperates its costs with targeted advertising offers based on your credit history.
I don’t oppose automated targeted ads. We are already bombarded with many of them unknowingly and often they provide better matching offers. I checked my Credit Karma's scores a month ago but had an uneasy reservation when I learned that Credit karma provides its own “proprietary credit score” on scale of 300 to 850 (same scale as FICO Score of Equifax).
All of us who have done a credit score check from all 3 credit bureaus know that the credit scores differ by a few points. Credit scores are slightly different because each provider uses somewhat different algorithms. However, all credit scores are calculated from payment history (~35% weight), credit utilization (i.e. how much balance you have on card, ~30%), length of credit history (~10%), types of credit, and recent inquiry (high multiple credit inquiries are negative, ~10%).
In order to find the accuracy of credit scores, I briefly subscribed a trial offer (and canceled same day) and pulled credit scores from all 3 credit bureaus. In comparison to my Credit Karma scores, credit score differ as follows (difference in parenthesis); Transunion (0 points), Experian (+17),and Equifax or FICO (+7). The low difference in Transunion score maybe because Credit karma utilizes Transunion's service to calculated its scores. As a safe guard I also asked my cousin M to check his scores. He found his Experian score was 12 points lower than Credit Karma’s score.
In conclusion to my little unscientific experiment, Credit Karma’s credit scores are reliable. It gives free tools. There is no need for not signing up for the service since it’s free. I would love to hear about your own Credit Karma's experiment.

Photo. Screen Shot


  1. My credit karma score differed by 15 points from my fico score which was generated as part of my mortgage application yesterday. Not too bad for a free service.

  2. I agree, the score seems to be within 2 to 4% of the FICO or any other credit scores.

  3. My Credit Karma score has exactly the same value as the one from TransUnion, but is bigger than Experian's score with 30 points. But on Experian's report I have fewer hard inquiries compared with TransUnions report. Credit Karma's report looks identical with TransUnion's report.

  4. Indeed it seems that Creditkarma is using Transunion's report and formula to generate the credit report.

  5. I was suffering from credit card debt since 3 years and I have tried a lot to maintain my credit score on those days but failed to do that. I have got lot of help from to solve my debt queries on those days. Recently I have solved my all debt problems and got a deep relief from my debt burden . Now I am trying to build a good credit score for my future. Thanks for your awesome article....:)

  6. I also agreed to your points because credit score is very much important to make your life financially free and to achieve financial freedom . You can use some financial freedom tips to make it worthwhile for you. Hope it will help to those also who are looking to get out of debt disaster.