Just real quick… Another warning about Credit Karma. I just got an alert from them, here it is below. It quite literally says ‘Now is the time to take on those new negative marks below’…
They go on to characterize ‘Negative Marks’ as “Bankruptcies, Liens, Late Payments and Accounts in Collection. I am sure you can imagine I am vigilant about my credit, and receiving an email such as this nearly made me lose my cookies… so, I did what they had hoped I would do… Frantically logged onto Credit Karma, fearing the worst.
The thing is, this is what I was greeted with:
I then went to my accounts and found nothing new that was derogatory/delinquent or even mildly negative, despite their proclamation. My scores actually increased, according to their bogus scoring model.
So, basically, be careful. Credit Karma is free and does serve a purpose. In my opinion, it is best used for unauthorized inquires and other signs of fraud. Also, updating of payment info and possibly also trends on scores. Other than that, it is useless. Clearly the information isn’t terribly reliable and it is mostly used by Credit Karma to incite fear so you take an action. As a matter of fact, if I click my ‘recommendations’, it suggests that I actually open another card, to help with that pesky interest. What is doesn’t mention is that bey opening another card, I will receive an inquiry, which can drop my score, and then, if approved, I will have another account on my credit, which can lower my score and finally, shorten the average history of accounts, which could lower my score.
Credit Karma bills itself as an educational tool for folks. They use fear and a lack of understanding of credit as tactics to make money off of their members.
Folks, if you want honest advice, read the blog, or give us a call. Just be careful with Credit Karma and other services like this. On hint… if the product is free; your the product.