What’s the best website for everything credit scores and reports?
We’ll, the jury as well as innovators are still deliberating on that. However, there are many good online platforms that will give you one and/or two of your credit reports. Creditkarma.com is one of those websites.
Creditkarma.com Gives Two Free Credit Reports: TransUnion and EquiFax
What credit scores types does creditkarma.com provide?
I want to be very clear about this. So help me God. They provide the VantageScore, not FICO!
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Whats’s a VantageScore?
A VantageScore is a credit score jointly developed by the three major credit bureaus. Like FICO, it aims to predict how likely a borrower will repay debt. It’s used by about 10% of lenders, landlords and financial institutions to evaluate creditworthiness.
The three credit bureaus, got tired of paying FICO. Everytime they run their credit reports content through the FICO algorithm (which is trusted by 90% of lenders), they got to pay.
Lenders do not use the VantageScore formula often because they deem FICO more reliable, as a predictor of behavior. They also feel, like I do, that a bureau creating its own risk-predicting formula may be a conflict of interest.
What matters most for VantageScores
VantageScore prefers not to use percentages to describe how much weight it gives various credit factors, as FICO does, but instead describes them in terms of influence.
Payment history is “extremely influential.”
The age and type of credit and the percentage of credit used are “highly influential.”
Total balances and debt are “moderately influential,” and recent credit behavior and debt are “less influential.”
However, VantageScore has also broken down its contributing factors this way in the past:
- Payment history: 40%
- Credit age and mix: 21%
- Credit utilization: 20%
- Balances: 11%
- Recent credit applications: 5%
- Available credit: 3
