09/29/2023
Mortgage Credit Score vs. Credit Karma Score: Know the Distinction 🔍🏠
Your credit score used for mortgage qualification and what you see on credit karma serve different purposes and are often not the same score. See below for more details:
Mortgage Credit Score:
✨Utilizes various models to calculate scores, typically generating three scores based on different models. The qualification process generally relies on the middle score of the three.
✨Tailored specifically for mortgage applications, taking into account elevated risk factors such as payment history, credit utilization, the number of installment loans, collections, and other pertinent factors. This specialized approach often results in a lower score compared to what may be observed on Credit Karma, given the consideration of heightened risk factors.
Credit Karma Score:
✨Primarily functions as an educational tool to aid consumers in monitoring their credit health.
✨Based on specific factors, it offers a generalized overview of credit but does not extend to encompass additional risk factors beyond payment history, credit card utilization, late payments, credit history, and hard inquiries.
