As a home lender, though, I also type of hate it. While it tells people their credit history, it isn't really the same credit standing I'll be using with regards to loan application which in turn leads to disappointment for my clients. So why isn't it exactly the same score? Good question. Let me explain.
Credit Karma is really a custom credit history calculated using the VantageScore scoring model. To clarify, a 'scoring model' is simply term to the way the math is completed. While technique VantageScore scoring model has become growing since its creation, it's still not the principle credit scoring system available. The main scoring model available today may be the FICO score.
A Credit Karma score is not exactly the same as a FICO score. FICO continues to be around since 1989 and would be the leader inside credit scoring arena first primary reason - it may be the model finance institutions have to use. In the mortgage arena at the very least, lenders have to use a FICO score into their loan approval when they are selling their finance to Fannie Mae, Freddie Mac or FHA. Seeing most loans are offered to those entities, it's easier for mortgage companies just to use the FICO scoring system in general.
The issue with this is how the VantageScore as well as the FICO calculations are not the same and they offer the user different credit worthiness numbers. If a potential homebuyer turns into a higher VantageScore from Credit Karma, they will often think they're in great shape to buy a house. They then might have to go out and locate the house they love and officially apply with regards to mortgage just to have the lender pull their FICO score and learn which they actually don't qualify.
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