One of my favorite productivity blogs, MakeUseOf.com, recently published an article about a free credit score service called CreditKarma.com. CreditKarma seeks to approximate your credit score based on factors that the Fair Isaac Company (FICO) has made public – but note that CreditKarma does not provide a FICO score.
Apparently, however, CreditKarma has done a decent job in identifying credit scoring factors so that its credit score will give you some insight as what FICO or the other credit scoring models will produce.
CreditKarma also contains a number of helpful tools, including a home affordability calculator, a debt repayment calculator and a loan amortization calculator.
I signed up for a free CreditKarma account to see how the service works. It asks you to create a user name and password, and then asks for your address and social security number. You then receive an email asking you to verify your request. Next, the system asks you to authorize it to access your Trans Union credit profile. The Trans Union system then generates questions to verify your identity (i.e., “your credit profile suggests that you have lived or live on one of the following streets” – and you get 4 choices. There are three of these questions.
If you answer the ID questions correctly, CreditKarma then generates a score, which is obviously based on your Trans Union report.