I also pulled one of the reviews from the website…
“I recently used Credit Karma in Canada (where I live) to determine if I would be able to get a mortgage on a new home. My score from them show my credit to be well into the good category at 716. I then approached a company for a mortgage ( I would never have considered this with a bad score). I was contacted within a few hours that my credit score was 618. I asked this company if they had the right name. When I told them my documented score, I was informed that they do not recognize credit Karma’s information. Therefore I find Credit Karma to be useless. I wonder how many others have had doors slammed in their face by this. My wife has not been well and it was very hard on her. Thanks for nothing Credit Karma.”
For my clients, I recommend either Privacy Guard or Credit Check Total to monitor their credit reports and scores. These sites cost about $20-$30 per month to access/track new credit reports and scores. This is the least expensive way that I’ve found to obtain new credit reports and scores that we use for our credit repair service.
Privacy Guard uses a “Credit Xpert” score which is fairly similar to a “FICO score” that banks use to risk grade you for a loan.
Credit Check Total uses a “FICO 8” score which is a generic consumer credit score. This is also very close to a score banks use to grade you.
FICO has designed over 50 different scoring models designed for specific industries (mortgage, auto, credit card, etc..) which will all produce a different 3 digit score ranging from 300-850. Are you confused yet?
If you’re thinking of applying for a loan/credit, go to MyFICO and purchase all of your FICO scores. Their cost is about $60 for all your FICO scores. This will be accurate information that will show you the same scores that the banks will see to approve or deny you.
Share this post with anyone you know that uses Credit Karma!
What Credit Score do You Need to Buy a Home?
When it comes to mortgages and credit scores, there are two really important questions to ask:
–What credit score do I need to qualify for a mortgage?
–What credit score do I need to get the lowest interest rate on a mortgage?
These different but related questions are important if you are looking to buy a home. And the second question is particularly important. With a high FICO score, you can literally save tens of thousands of dollars in interest over the life of a home loan. So let’s take a look at both questions. And if you don’t know you score, be sure to get you free credit score.
What credit score do you need to qualify for a mortgage?
The first thing to keep in mind is that qualifying for a mortgage involves a lot more than just a credit score. While your FICO score is a very important ingredient, it is just one factor. Lenders also look at your income and level of debt, among other things.
As a rule of thumb, however, a credit score below 620 will make buying a home very difficult. A FICO score below 620 is considered sub-prime. In the past there were mortgage companies that specialized in sub-prime mortgages. Because of the challenges in the credit market over the last year or so, however, sub-prime loans have become difficult if not impossible to obtain.
A FICO score between 620 and 650 is considered fair to good credit. But keep in mind, this range of credit scores does not guarantee you will qualify for a mortgage, and if you do qualify, it won’t get you the lowest interest rate possible. Still, to buy a home aim for a score of at least 620, recognizing that other factors weigh in the decision and that some banks may require a higher score.
What credit score do you need to get a low rate mortgage?
It use to be that a score of about 720 would yield the lowest mortgage rates available. Today, the best rates kick in with a FICO score of 760. And interest rates go up significantly as your credit score drops. To give you an idea, the following table shows current rates by credit score and calculates a monthly principal and interest payment based on a $300,000 loan:
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