I'm loooooooving me some Credit Karma, so much so I decided to do a Credit Karma App Review!
Okay, okay, this is not a new relationship. I've loved Credit Karma for the last 5 years. Yup. (no new friends)
Not too long ago the only way to get your credit score (aka your money GPA), was to pay for it. Although you could get your free credit report once each year from the 3 main bureaus (Trans Union, Experian & Equifax), reading them was like trying to do high school algebra. Remember? Solve for x.....Your #credit score is basically your grade for your money management skills. Click To Tweet
Enter Credit Karma....
Not only does CK give you your score for FREE, they also give you your FREE credit report all year long (no more once a year). On top of all of that awesomeness, they fully explain what your credit score and report mean. Jackpot!
Already loving Credit Karma like I am? Sign-up here now: http://thebudgetnistablog.com/creditkarma
If you've been following me for awhile you know that I was a preschool teacher for over 10 years.
Five years after this picture was taken, I lost my job during the height of the Recession, because my school lost its funding. At age 24 my credit score was an 802 (basically a strong A). After losing my job, I couldn't afford to pay the mortgage for the home I bought at age 25 and my 802 credit score fell to a 547 (basically a D / D-).
I didn't even know my score was so bad until I checked Credit Karma. At first I was devastated, then I started reading the CK site and learned more about how credit was calculated. I used this knowledge to bring my score from a 547 to a 750 in a year and a half. Not bad considering my house was foreclosed upon and a foreclosure is a huge F on a credit report.
Sidebar: here's how credit is calculated...
The five components are:
1) Inquiries: 10% : Each time you authorize (usually by supplying your social security number), someone other than you access to your credit report, your score potentially goes down by 8-30 points.
2) Type of debt: 10% : Having different types of debt shows that you're an experienced borrower.
3) Length of credit history: 15% : The longer you’ve had credit, the better. Be sure to keep that in mind when deciding whether or not to close a credit card.
4) Utilization: 30% : How much of your credit limit you’re using. Using more than 30% of your limit is a HUGE no-no and will drag down your score.
5) Payment history: 35% : Basically, it measures whether or not you pay by the due date, and whether you pay at least the minimum amount required.
There are 5 components that make up your #credit score. They are... Click To Tweet
I used the knowledge I learned from Credit Karma to not only raise my score, but to raise by Honey's score too.
Enter Superman (my boo).
When we first started dating 2 year ago, his credit score wasn't the greatest. Yes, I asked... I'm The Budgetnista.
How did I ask? He wanted to get a car and wondered what his score was, so I had him sign-up for Credit Karma. Within minutes we were able to see both his score & report. After playing with the CK simulator on their site, he saw that if he paid off the one credit card he had (it was nearly maxed out with super-high utilization), he could dramatically raise his score.
He paid it off with some savings and his score jumped nearly 100 points in 3 months! Woot Woot!
So basically Credit Karma was kinda like my financial relationship coach.
How Credit Karma Works:
1) You join for free here: http://thebudgetnistablog.com/creditkarma
2) You'll be asked to verify that you are who you say you are. Example: your past addresses, last 4 digits of your Social Security number, employment history, etc.
3) After signing up online, get the free app for your phone.
Joining Credit Karma is fast, easy, and 100% free! They DO NOT ask for any credit card info.
- Access to your FREE Credit Score anytime
- Exclusive savings based on your score
- Tools to track your credit score
- Valuable credit and finance content
- Calculate and research to find best rates
NOTE: The most up-to date credit report & score can be gotten directly from your lender. CK and other sites get your updated score & number after the credit bureaus send it to them. This video explains further.
Sooooo, what are you waiting for? I know it can be scary getting pulling your report and score. The good thing is, as soon as you know, CK will help you to begin making it better. I hope you found my Credit Karma App Review helpful.
Yes? Are you ready to get started? Click here to begin getting your credit-on here: http://thebudgetnistablog.com/creditkarmaI now know how to get my credit score, credit report and how to begin to manage both for free! Click To Tweet
Tiffany "The Budgetnista" Aliche
My Lisa Rule: I have 4 sisters and Lisa is the baby (we’ll she’s not a baby anymore). Of all of my sisters I’m the most protective over her. Before I share any product or service with you, it must pass my Lisa Rule.
What’s the Lisa Rule? If I would not advise Lisa to use a product or service, I won’t advise you to. YOU are my Lisas. I feel protective over you and your financial journey.
Credit Karma passes my Lisa Rule. Yes, I am affiliated with Credit Karma, but I would not recommend a product or service that I didn’t believe was helpful and useful.