Credit Karma vs My Fico 💳 🚘 🏠 The Truth About Credit Karma... How To Raise Your APPROVAL ODDS!!!

hey guys how you doing today today I'm gonna be going over what the differences are between Credit Karma and my FICO my name is roddy walker i like to go over financial slash motivational tips basically anything that helps you guys grow your life so today i'm gonna be basically going into both these apps I got them pulled up on my phone let's go over into this I like to keep a little folder for all my credit applications the two ones that I'm talking about today that I mainly use is Credit Karma in my FICO so let's talk about Credit Karma first because most people have probably heard about Credit Karma so we go into my Credit Karma app right here and we see that TransUnion is at 7:31 and Equifax is at 7:28 Wow you know that's pretty good I'm pretty pleased with that score right now you got a lot of different features in Credit Karma like right when you look in it you see that you have this credit option that lets you look in here and look at your credit health which is very helpful for people understanding how your credit score is created as you can see you got six factors that determine your credit you got your heart in Cory's you got your age of credit you got your credit utilization payment history derogatory marks and total of accounts each of these make up a section of how they score your credit how you rank in certain areas is gonna determine on how high your score is so as you can see in four categories I am in green which is a good category it's considered good now super green is like exceptional to be exceptional you have to have 21 plus accounts open to be exceptional in that credit ranking it shows that I have 13 so I'm still in the good but I'm not in the exceptional yet so that's how the total accounts will work is that's how much credit and this is car loans this is credit cards this is anything that has to do with credit its mortgages it's not just cards so just remember that two payment history is another huge one payment history you need to have a really solid payment history now you can see I've only had problems twice so my payment history is looking pretty good right here 315 payments out of 317 I did make some mistakes in the beginning and you can see it hasn't really affected me in long run big thing is credit utilization this is a huge factor so as you can see I have a total limit of two thousand eight hundred and seven hundred and seventy four dollars of credit that I can spend as you can see I'm only spending about two thousand one hundred forty-four out of that that means that I'm only using seven percent of all the credit that I own that is very important if you want to be in the exceptional range which I am in this category which is very doable for most people to get into this category you just have to be with all your cards you have to be barely using 7% of the limit to be in this category this will jump your score remember guys this is for every credit bureau one thing about Credit Karma is they have TransUnion and they have Equifax those are the two credit bureaus but they're actually three which will go over that in a minute but just remember that okay so things I need to work on is I need to work on my age of credit I've been working on trying to get a lot of credit established I just want to get it out of the way so my oldest account had been five years but the newest account I've had was in the last two months right that's the last time I got a new card so I need to work on my age of credit history I need to once I get enough you know that won't be as much a factor but I tell people to don't worry about this as much because it's not as a big credit factor as payment history and credit utilization those are the two biggest factors this one will not affect your credit as much if you're getting new credit cards as long as your credit utilization and payment history is on par and another thing inquiries inquiries will affect your credit this is another factor your score only goes down five to ten points and it can recover in the next three months usually maybe even six months but it usually doesn't take that long to recover as long as you're paying off the balances and you get an inquiry every time you apply for credit and it's a hard inquiry that's when they actually pull your credit if it's a soft inquiry then they don't pull your credit they basically have something on file that pre qualifies you so you have to be able to know the difference and most of them are gonna be hard pulls if it means getting another credit card on your belt a lot of times it's worth it do it in space times like I would get maybe one credit card every three to six months take that five ten point ding boom because you got a new balance it helps you build up your score you could go up even more than five or ten points because you added a new account so that helps you with the account total which we talked about with that factor so I'm gonna get out of Credit Karma because there's just so much to it but one thing I want to emphasize before I leave it Credit Karma the way they factor their scores is the Vantage 3.0 metric and the reason why this is important is because that makes it the Credit Karma score inaccurate let's go ahead and go into my FICO and I can explain more about what I mean by it makes the score inaccurate so you have my FICO which my FICO is a $40 a month but there's a reason why you're paying $40 a month because you're getting accurate credit scores so when we go into my FICO not only do we see Equifax TransUnion we also see experience because it's a triplet there's three of them there's three credit viewers for consumers there's three main ones that report each Bureau could be used by a different Bank like Chase can use TransUnion US bank could use like Experian and Equifax when you're applying for different banks you want to know what credit bureau they use now right off the bat when we go in here we see that FICO score eight FICO score eight is a is a scoring metric by FICO and one thing you need to understand about this FICO app and FICO in general is FICO is what lenders use to look up your score this is this these are the scores they were looking at when they're looking to a preview so you go into Credit Karma you'll notice right off the bat let's just go right back into it come on credit card right okay you'll see 3731 TransUnion 728 Equifax all right let's go right back into this now let's look at Equifax 657 TransUnion 698 none of those are even in the 700s that's a big ass deal the reason why that's the biggest deal is because you think that you're in the 700 and you're in the 600 and you're trying to apply for things that usually get approved in the 700 you're gonna have a hard time now the only 700 I have in FICO is Experian you're gonna learn a lot today I'm not I'm not lying guys you're gonna learn a lot so here's another catch this FICO score a is just an overall of all your scores averaged together if you really want to get the real deep down score in this FICO lap this is why it costs $40 a month it's because you get individual reports from each type of credit so you got three types of main credit you got mortgages and as you can see we go into mortgages and we see the FICO scores in there look at that it's even lower 624 663 630 that means the mortgage FICO score is different than the auto in the in the credit card FICO score the mortgage is actually usually lower it's usually like 20 or 40 points lower than your actual other scores so we go into auto loan boom it's a little bit higher right Equifax is still a little bit low but TransUnion went a little bit higher and Experian went a little bit higher and then we'll go into last one credit cards it was more like my specialty boom my credit cards are actually higher credit card scores for my FICO credit card score the important thing to know about this guy's is that you actually have different scores for what type of credit you're applying for so if you're applying for a mortgage you have your mortgage credit score if you're applying for an auto loan you have your auto loan credit score if you're applying for your credit card you have your credit card score so this is very important when applying for stuff because you don't just have one credit score you have multiple if you're doing a credit card one credit card companies actually look at more than one score not often but they sometimes do so if you look around you'll see we have FICO three scores even a FICO 9 score out all on it just kind of timed out on me it probably thinks I'm going crazy and stuff so let's go right back into there okay so you got FICO li FICO 5 4 & 2 that's all one score and then you got FICO 3 and then got FICO 9 it's good to try to do some research and figure out which one of these scores are they looking at or which category you're in so if you're in credit cards this is where they mainly do it they might do it in the auto I believe - let's just check real quick yeah so autos got FICO score 8 you can see boom but I'm thinking that in Auto if I remember correctly I think they mainly use 5 4 & 2 but as you can see there are lenders that do look at FICO score 8 and FICO score 9 you want to figure out what that lender uses and then when you go to a mortgage it's pretty cut-and-dry they only use five four and to score they only actually have a five bore and two scores in the mortgage they don't let you do a FICO score eight and the mortgage they don't let you do a FICO score nine in the mortgage they don't mess around with mortgages that's like the biggest type of credit you can get and then credit cards of course they got four different types of scoring metrics which we went over so type of score a FICO score nine five four and two three so those are important to know because you want to see hmm which FICO score are you looking at so if I go into my credit card are you looking at FICO score eight TransUnion or are you looking at FICO score five four and two Experian like this is gonna be a total different outcome when you're applying for things so this is very important and this is what my mentor taught me during that timeframe so it's important to learn and try to use these when you're going ahead another great thing about this app that makes it worth great money is that you get your credit report which some of you guys want that paper each month you can pull out your FICO score credit report and it will come to you if you're paying this $40 a monthly you get all three bureaus you get to click into it and guess what you get to see your real credit report you get to see things that lenders get to see you can see I have 19 accounts in here why did Credit Karma say only at 13 because they don't have what FICO has they're not paying attention to it the same way so you can see you know it's it shows you everything about your accounts it's important for you to be able to see what the länder see because if you're seeing something different than what the lenders see you're gonna think that you owe I can apply for this and that okay so here's another thing I want to show you in the FICO score 8 the simulator so you can see if I paid my bills down in the next 24 months I would be at 7:42 748 756 as an overall FICO score 8 overall score with all the three scores put together like this is what the simulated score would look like my goal is to try to get there my goal is to try to make that happen the cool thing about the simulator is you can keep adding new variables like this is why it's important to use the simulator before you apply it because it says apply for new credit boom score automatically went down negative five points you see you can change the amount of months if I apply it in three months Wow now the score went up five points twenty points and five points so the difference between applying now versus three months my score goes up you can test this and see like oh what if I got a student loan what would that look like well then I got an auto loan what would that look like this little simulator thing is nice and it's accurate because it's like go now FICO is the number one credit karma use of span tidge 3.0 which is a cool system for scoring because it makes your score look a little better than this but lenders are not gonna see that and they're the people that approve you for credit so you have to understand that this is why it's important to have this app now I didn't want to make the investment at first guys I didn't want to you know pay all this money up top to some credit card company just to see my credit you know I loved Credit Karma I was a Credit Karma kid and I loved it but you know when you're playing with the big boys and you they they can see your score for what it really is you got to be able to understand it as well so one more thing I want to go over I think this is how I'm gonna wrap up the video it is just another way of showing the credit factors in a better way that FICO does it then Credit Karma so when you go into your insights but just as a will thing that you just swipe up you have those credit factors that I was talking about and here this five that control your score so you got your payment history and your amount of debt which is the utilization when I was talking about so these are the two biggest factors you can see either the biggest pieces on the will these three smaller pieces are length of credit history amount of new credit because your length of credit history has to do with the average amount that your accounts have been open so if you have new ones it messes with your oldest accounts average so your average gets smaller when you get new accounts when you have older accounts so that's one thing to factor in as well so it's good to actually get a bunch of counts as much as you can as soon as you can if you want your average accounts to be long because you have to keep getting new ones every year it's not gonna totally hurt your credit by the way like I've learned that this doesn't kill your credit but it is going to affect it as long as you're adding new accounts and your paint your payment history is flawless you never missed a payment you're always on time and think of your limits as if you could only spend if you had $10,000 but I'm only gonna let my sauce spend no more than $100 on that account now you guys are probably wondering like what the hell like that's weird but that's good practice especially if you're new to credit you need to be using the least amount of money as possible I'm using 8% so like I told you I have like thirty thousand dollars I can spend in credit right now I'm only spending around two grand out of that thirty thousand because it may impact your score it makes a big difference so look at this credit factor will you can see that each one is for each Bureau to like you can look at Equifax you can look at TransUnion you can look at Experian because sometimes they're different depending on what you apply for you get denied on the one and not the other it's important to understand this kind of stuff so guys I realized I took a lot of your time today and if you stayed till the end of this video I really appreciate that please let me know what you thought about this video in the in the comments because let me know if you enjoyed it please like and subscribe if you got any value out of this hit that notification button you know see what kind of videos are coming out later I really appreciate guys you tuning in if you have any more questions I'd love to answer them so just pop them in the comments guys alright guys well thanks for coming today and I'll talk to you soon

Channel: Roddy Walker

Views: 307,576

Keywords: Credit Score, Credit Karma, My Fico, Credit Repair, Credit Building, How To, Good Credit, Transunion, Equifax, Experian, Money, Cash, Cashback, Travel Rewards, Signup Bonus, Approval Odds, Apple Card, AMEX, Chase, Lenders

Id: HwVJlDid3iM

Length: 14min 46sec (886 seconds)

Published: Thu Sep 05 2019