There are a few reasons why your FICO score may be higher than your Credit Karma score. Let’s delve into the details.
1. Different scoring models: FICO and Credit Karma use different scoring models to calculate your credit score. FICO is the most widely used model by lenders, while Credit Karma uses the VantageScore model. These models weigh various factors differently, so you may see differences in your scores.
2. Data sources: FICO scores are based on information from all three major credit bureaus: Experian, Equifax, and TransUnion. On the other hand, Credit Karma pulls data from TransUnion and Equifax. If the data reported to one bureau differs from the others, it can lead to variations in your scores.
3. Timing of updates: Lenders and creditors may not report your information to all three credit bureaus at the same time. This can result in discrepancies between the reports used by FICO and Credit Karma. For example, if a lender reports to TransUnion but not Equifax, your FICO score may be influenced by that information while your Credit Karma score may not.
4. Credit utilization: Another reason for score discrepancies can be the timing of credit card balance updates. Credit Karma updates your credit card balances frequently, while FICO scores are typically based on the balance reported by your credit card issuer at the end of your billing cycle. If your balance changes frequently, it can affect your Credit Karma score but not your FICO score.
5. Scoring range differences: FICO scores range from 300 to 850, while VantageScore ranges from 300 to 850 as well. However, the way scores are categorized may differ. For example, a FICO score of 720 may be considered excellent, while a VantageScore of 720 may be categorized as good. This difference in categorization can lead to variations in how your scores are interpreted.
It’s important to note that while these factors contribute to score differences, the overall trends and patterns in your credit history should be relatively consistent across both FICO and Credit Karma scores. If you notice a significant and unexplained difference, it may be worth investigating further to ensure there are no errors or discrepancies in your credit reports.
Personal Experience: I have personally experienced variations between my FICO score and Credit Karma score. In my case, the score difference was primarily due to the timing of updates and differences in the scoring models used. It’s always helpful to regularly monitor your credit and understand the factors that can influence your scores.