At the Potempa Team, we get this question all the time: “Why is my credit score different than what Credit Karma says?” The short answer? Not all credit scores are created equal—and lenders use a different scoring model than what you see on most free credit check tools. Let’s break it down.
The Truth About Credit Karma and Other Credit-Monitoring Tools
When it comes to your credit score, those “free credit monitoring” tools can be a little misleading. Products like Credit Karma utilize a model called the VantageScore to calculate your credit score. It helps you keep tabs on your credit health, but it’s not the score lenders use when you’re going through the mortgage pre-approval process.
The number you see on something like Credit Karma might be thirty to fifty points higher (or lower) than the one a lender sees. Why? VantageScore weighs things a little differently. For example, it may put more or less emphasis on certain types of debt or late payments, and it might update faster (or slower) than your FICO score.
Understanding the FICO Score and Its Role in Helping You Buy a Home
When it comes to getting a mortgage, your FICO score is the one that matters. Mortgage lenders, such as the Potempa Team, use industry-specific versions of the FICO scoring model, which are designed to assess risk for home loans. These scores are pulled from the three major credit bureaus—Experian, Equifax, and TransUnion—and each one may look slightly different.
Unlike VantageScore, FICO mortgage scores put more weight on things like your payment history, how long you’ve had credit, and how much of your available credit you’re using. They also tend to look more conservatively at factors such as late payments, collections, or a short credit history.
What You Really Need to Get Pre-Approved for a Mortgage
If your goal is to buy a home, the key is to build strong credit habits that demonstrate to lenders your financial reliability. You’ll also want to start the pre-approval process early enough to make any necessary adjustments.
Here are a few smart moves to help you get mortgage-ready:
– Pay everything on time.
– Keep credit utilization low.
– Hold off on opening new credit cards or financing a car while preparing to buy.
– Don’t close old accounts. The age of your credit history matters, so keep older cards open if possible.
– Get guidance from an expert lender.
At the Potempa Team, we’ll help you understand your current credit score and map out a plan of action to help you achieve your goals if you’re not quite ready to buy. Reach out today and let’s get you one step closer to homeownership—using the numbers that truly matter.
