Why is Credit Karma and Experian scores different?

Answered by Edward Huber

Credit Karma and Experian scores can be different for a few reasons. It’s important to understand that Credit Karma and Experian are two separate entities that use different methods to calculate credit scores and compile credit reports. Here are a few factors that contribute to the differences between the two:

1. Credit Bureau Differences: Experian is one of the three major credit bureaus, along with Equifax and TransUnion. These bureaus collect and maintain credit information from various sources, such as lenders and creditors. On the other hand, Credit Karma obtains credit score and report information from Equifax and TransUnion. Since the bureaus may have different data on file, it can lead to variations in the scores and reports presented by Credit Karma and Experian.

2. Scoring Models: Another reason for the differences in scores is the use of different scoring models. Credit Karma primarily uses VantageScore, which is a credit scoring model developed by the three major credit bureaus. On the contrary, Experian uses the FICO scoring model, which is widely used by lenders. These scoring models have different algorithms and weight different factors when calculating credit scores. As a result, you may see variations in your credit scores between Credit Karma and Experian.

3. Timing and Updates: Credit scores are not static and can change over time. However, Credit Karma updates its scores and reports on a weekly or monthly basis, while Experian updates its data in real-time. So, the scores you see on Credit Karma may not always reflect the most recent information and can differ from the scores provided by Experian.

4. Data Sources: Credit Karma and Experian may also have access to different sources of data. While Experian collects information directly from lenders and creditors, Credit Karma relies on data provided by Equifax and TransUnion. If there are discrepancies or variations in the data reported by these sources, it can lead to differences in the scores and reports presented by Credit Karma and Experian.

5. Credit Monitoring vs. Credit Reporting: It’s important to note that Credit Karma primarily focuses on credit monitoring and providing consumers with access to their credit information. On the other hand, Experian is a credit reporting agency that compiles credit reports and provides credit scores based on the information in those reports. This difference in focus and purpose can also lead to variations in the scores and reports provided by Credit Karma and Experian.

The differences between Credit Karma and Experian scores can be attributed to variations in the data sources, scoring models used, timing of updates, and the focus of these entities. It’s important to regularly monitor your credit and review information from multiple sources to get a comprehensive understanding of your credit standing.