Mortgages January 24, 2018

Get The Credit Karma App

Credit Karma App, It’s free and it’s handy. Get It

Credit Karma App. Perhaps the most important feature is to quickly note what it says. Are there any changes? Did your score go up or down? What caused the change.

If you work through all parts of this app you will be given enough hints that you can see what to adjust or do to raise your score.

It’s wise to try and get your score into the 800’s. In the hundreds of credit reports I have seen very few people are in the 800’s. Even though a low 700 score may qualify you for a loan or to get insurance, the rate you pay may be lower by getting into a higher bracket and result in a lower cost to you.

One credit advisor I took a recent class from pointed out that there are different scoring systems for different applications. Even though your credit report in Credit Karma may show a somewhat different score than the one your loan office pulls for your mortgage, the info is just the same. The accounts, the balances, and the details are all quickly available on Credit Karma.

When the app was first introduced it was less pertinent. Currently they have arrangements with two of the major credit bureaus and the info is relevant. Two is enough in most cases. For example a mortgage lender will take the middle score as their decision score and with two of the three major bureaus you for sure have the middle score.

Your creditors update your information in batches. Some do it monthly some twice a month. Credit Karma tells you when the next update is for their application.

I recently added a credit card for my personal use. First I applied for it. I actually did it from the Credit Karma app. It made a suggestion on an appropriate card for my score. The application was accepted immediately. The next day the request showed up on Credit Karma as an inquiry. More than three inquiries in a quarter bring start to bring you score down a couple of points or more. After receiving the card, I used it. In about six weeks I could see my new score, which raised  20 points because of the large amount of unused credit the new card provided.

Credit Karma is one of those great apps to have on  your phone or tablet. It’s meaningful and is an easy way to do a regular checkup on this important part of your financial picture. Don’t let any negative  you have heard keep you from downloading it.

By the way, as good as the app is, the desktop version of your Credit Karma account is even better. You will find much more information,  more teaching tools, and a clearer look at your credit information. My suggestion is to make it a regular habit to check the app and at least monthly take a thorough journey through the desktop.

I was recently asked “how high should my score be”? The answer to that question is as high as you can get it. The benefits are more than in feeding your ego, they can show up as a lower interest rate or even a lower insurance rate. That’s right, insurance companies run a credit score on you. What has this world come to? Oh, by the way, shoot for an 800+ score, few there be that get to that.

The higher your score the lower the interest rate you will earn. keep on moving it up.

Larry K Cragun – Windermere Real Estate

Residential and Condominium Professional