Credit Karma vs. NerdWallet | HelpAdvisor.com (2024)

FAQs

How is NerdWallet compared to Credit Karma? ›

NerdWallet only pulls one credit score from TransUnion once a week, unlike Credit Karma, which gives you two scores updated daily. You can see the factors that go into your credit score, ranked from highest impact to lowest: payment history, credit utilization, age and mix of accounts, balances, and recent inquiries.

But, just how accurate are Credit Karma scores? They may differ by 20 to 25 points, and in some cases even more. When Credit Karma users see their credit score details, they are viewing a VantageScore, not the FICO score that the majority of lenders use.

Approval Odds are guidelines — not guarantees

Even if your Approval Odds are “outstanding,” “excellent” or “very good,” remember that the issuer — not Credit Karma — always has the final say in whether you'll actually be approved.

NerdWallet's top competitors include SmartAsset, Frank, and Credit Sesame. SmartAsset is a financial decision-making platform operating in the personal finance and investment advisory sectors. The company offers a range of tools and services d…

Is NerdWallet accurate? The accuracy of the information displayed is entirely dependent on the accounts you link with NerdWallet. To see the most accurate information, connect all of your bank accounts, credit cards, loans, and your home value, where applicable.

The reason is, Credit Karma utilizes the VantageScore 3.0 model, which could be dissimilar from the FICO score usually adopted by lenders.

Why is my FICO® score different from my credit score? Your FICO Score is a credit score. But if your FICO score is different from another of your credit scores, it may be that the score you're viewing was calculated using one of the other scoring models that exist.

The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.

If you decide to enroll in both services, keep in mind that the FICO Score based on Experian data is calculated differently than the VantageScores based on TransUnion and Equifax data you'll get from Credit Karma. Your FICO Score may differ from your VantageScores because of those different calculation methods.

Although VantageScore's system is accurate, it's not the industry standard. Credit Karma works fine for the average consumer, but the companies that will approve or deny your application are more likely to look at your FICO Score.

Who is suing Credit Karma? ›

The FTC alleged that many people who got “pre-approved” credit offers from Credit Karma were not approved. As a result, they wasted time applying and sometimes saw their credit scores drop when their applications were denied.

The credit scores and credit reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. They should accurately reflect your credit information as reported by those bureaus — but they may not match other reports and scores out there.

Consider whether your primary concern is tracking your finances or managing your credit score. Credit Karma is likely the best option for you if your primary concern is managing or improving your credit score. If your primary concern is budgeting and finance tracking, NerdWallet is likely the better choice.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

When you sign up for a free NerdWallet account, you'll be able to view your TransUnion VantageScore, link your bank accounts to track your spending, see your upcoming bills so you can keep an eye on your cash flow, and keep track of your net worth.

We use industry-standard security controls, such as cryptography, to protect your personally identifying information. And our partners TransUnion and Plaid do the same.

Becoming a registered user of NerdWallet is free and gives you a dashboard displaying your finances. You can get a TransUnion credit score and link financial accounts to track cash flow and net worth. There's also a free app you can download for easy access anytime.

WalletHub is a decent Credit Karma alternative for people who want free access to their credit scores and not much else. Like Credit Karma, WalletHub provides education about financial topics and makes recommendations for financial products — but in a much more transparent way.

(It's free.) Any features for which a fee may be charged are optional and must be opted into.