Does Credit Karma Give You a FICO Score?

Credit scores are an important part of your financial life. They determine whether you get approved for credit cards, loans, mortgages, and more. They also impact the interest rates you’ll pay. So it’s essential to monitor your scores regularly.

Many people use Credit Karma to check their credit scores for free. But does Credit Karma actually give you your FICO score? Let’s take a closer look.

What is a FICO Score?

FICO scores are the most widely used credit scores in lending decisions FICO stands for Fair Isaac Corporation, the company that created the FICO scoring model.

Lenders use FICO scores to determine your credit risk. These scores range from 300 to 850. In general, the higher your FICO score, the lower your perceived credit risk.

There are several different FICO score versions tailored to specific types of credit:

• FICO Score 8: The most commonly used FICO score. Used for credit card applications, personal loans, student loans, etc.

• FICO Auto Score: Used for auto loan applications.

• FICO Bankcard Score Used for credit card applications

• FICO Mortgage Score: Used for mortgage applications.

So when you check your “FICO score,” you need to know which version you’re looking at. The score lenders use depends on the type of credit you’re applying for.

What Score Does Credit Karma Provide?

Credit Karma provides your VantageScore 3.0 credit score for free. This is a credit score created by the three major credit bureaus – Equifax, Experian, and TransUnion.

VantageScore and FICO scores differ in a few key ways:

• Scoring model: The algorithms used to calculate the scores are different. So the same credit report factors (payment history, credit utilization, etc.) are weighted differently.

• Score range: VantageScore ranges from 300-850, the same as FICO. But the scores from each model won’t directly correlate. For example, a 720 VantageScore doesn’t equal a 720 FICO score.

• Versions: There’s only one base VantageScore (3.0). But FICO offers many industry-specific versions.

So while Credit Karma provides free access to credit scores, they aren’t FICO scores. If you apply for credit, lenders will most likely use your FICO score – not your VantageScore from Credit Karma.

Why Does it Matter?

You’re probably wondering why it matters whether Credit Karma gives you FICO scores or VantageScores.

Here are a few key reasons:

• FICO is more widely used: Like we mentioned earlier, FICO scores are used in over 90% of lending decisions in the U.S. So your VantageScore probably won’t align with the scores lenders look at.

• Scores can differ significantly: While both score types generally range from 300-850, your actual scores can differ quite a bit between models. A 700 FICO score doesn’t necessarily equal a 700 VantageScore.

• Risk assessment differs: Factors are weighted differently in the FICO and VantageScore models. This means you may be perceived as higher or lower risk depending on the model.

• Impacts rates/approvals: Since lenders use your FICO scores, those are what determine whether you get approved and what rates you pay. VantageScores don’t have a direct impact.

So checking your VantageScore through Credit Karma isn’t useless. It can provide some insight into your general credit standing. But FICO scores give you a much better idea of how lenders view your creditworthiness.

How to Check Your FICO Score for Free

The good news is you have several free options for checking your actual FICO score:

• Credit cards: Many issuers like American Express, Bank of America, Chase, Citi, and Discover provide free FICO scores to cardholders through their online accounts.

• Banks and lenders: Some banks, mortgage lenders, and financial institutions offer free FICO access to checking account holders or applicants.

• myFICO: You can sign up for a free account at myFICO.com which provides your FICO score based on Experian data.

• Experian: Sign up on Experian’s website for free access to your FICO 8 score based on your Experian credit report.

• Credit unions: Some credit unions provide members with free monthly FICO scores.

Checking your real FICO score from time to time is important – especially before applying for new credit. It provides the most accurate picture of your credit health from a lender’s perspective.

Credit Karma Score Factors

While Credit Karma doesn’t provide FICO scores, it’s still useful for monitoring your credit. Here are the main factors that go into your VantageScore 3.0 on Credit Karma:

• Payment history (32%): Whether you pay your bills on time, including credit cards, loans, etc. Recent late payments hurt more.

• Credit utilization (23%): How much of your available credit you’re using. Lower utilization is better.

• Credit history length (15%): The average age of your credit accounts. Older is usually better.

• Credit mix (10%): Whether you have different types of credit – credit cards, loans, mortgages, etc. Variety helps.

• New credit inquiries (10%): Applying for multiple new credit accounts recently can lower your score.

• Available credit: Having access to more unused credit helps your score.

• Depth of credit: A healthy mix of installment loans and revolving credit cards boosts scores.

• Outstanding debt: Owing less debt relative to credit limits improves scores.

Monitoring these factors through Credit Karma can give you an idea of what’s helping or hurting your credit. Just keep in mind it uses VantageScore, not FICO.

Improving Your Credit Karma Score

Here are some tips for improving your VantageScore on Credit Karma:

• Pay all bills on time. Set up autopay if needed.
• Keep credit utilization low on all cards. Aim for 30% or less.
• Don’t close your oldest credit accounts. Maintain credit history.
• Limit new credit card applications. Too many hurt your score.
• Ask lenders to remove incorrect negative information from your credit reports.
• Build your credit if needed. Get a secured card or become an authorized user.
• Monitor your VantageScore regularly and watch for any drops. Address issues quickly.

Building healthy credit habits takes time, but you should see your scores slowly improve as you follow these tips. Of course, different factors impact FICO and VantageScore. But in general, these tactics will optimize both score types over time.

The Takeaway

Credit Karma provides free access to VantageScores, not FICO scores. While VantageScore gives you an idea of your credit standing, lenders actually use your FICO when making decisions. So it’s important to check your real FICO periodically too.

There are several ways to access your FICO scores for free, including credit cards, banks, lenders, and third-party sites like myFICO and Experian. Monitoring both FICO and VantageScores ensures you have a complete credit picture.

Understanding the differences between the scores Credit Karma provides versus your actual FICO scores helps set accurate expectations when applying for credit. Check your FICO before any major applications to avoid surprises!