Personal Finance

Credit Karma has switched scoring models

  • Last Updated:
  • Jan 28th, 2018 10:11 pm
[OP]
Sr. Member
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Mar 3, 2005
771 posts
412 upvotes
Mississauga

Credit Karma has switched scoring models

Credit Karma has switched scoring models today.

Instead of the TransRisk (i.e. the same educational score purchasable directly from Trans Union) - they now offer the CreditVision risk score. (The same score that Capital One and RBC provide).

This is a good move. This new score is closer to the real scores that creditors use than the 'educational' score.

More details at: https://help.creditkarma.com/hc/en-ca/a ... re-change-

https://www.creditkarma.ca/credit/i/wha ... arma-uses/
62 replies
[OP]
Sr. Member
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Mar 3, 2005
771 posts
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Mississauga
The CreditVision Risk score is actually kind of interesting.

It looks at trending.

i.e. two different people with identical balance and utilization can have different scores depending on whether balances are increasing or decreasing.

See some information at: https://www.transunion.ca/resources/tra ... ion-as.pdf
Deal Addict
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Aug 24, 2016
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Where am I? That is …
Hopefully this is a sign that TransUnion will kill off the TransRisk Score once and for all.
Really tired of hearing the same posts every day, “why hasn’t my TransUnion score moved in over 6 months”.
“Why is my TransUnion score 100 points lower than my Equifax score”
That model needed to be killed off ages ago.
Deal Addict
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Aug 24, 2016
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Where am I? That is …
This model seems to nose dive with new inquiries, and possibly utilization.
I had a couple trades that reported higher than normal utilization recently, and have applied for 2 credit cards this month, and my score according to the CV model went from 776 on January 1st to 692 today :lol:
Those are the only changes.

Image


From excellent to good in 3 weeks haha
[OP]
Sr. Member
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Mar 3, 2005
771 posts
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Mississauga
I think the Jan 1 score is an anomaly.

Mine shows generally flat (some minor up and down) for last 3 months - going up 91 points on Jan 1 and back down the following week.

I have no inquiries since Jan 1 to now, no significant balance change. Utilization <20%.
Screen Shot 2018-01-22 at 16.33.08.png
[OP]
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Mar 3, 2005
771 posts
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Mississauga
coolintheshade wrote:
Jan 22nd, 2018 4:23 pm
This model seems to nose dive with new inquiries

I concur.

Following this score on RBC and Capital 1 since August of last year - I saw my CreditVision Risk Score decrease go from 778 up to 802 and then down to 680-690 (the decrease after hard inquiries and 4 new accounts).
Jr. Member
Jan 2, 2009
173 posts
47 upvotes
Wow I just checked mine, It went up over 100 points since I checked it like a week ago, never saw it that high
Deal Addict
Mar 26, 2006
1876 posts
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OTTAWA, Canada
My wifes chart slowly dives with account closures, but no big hit for new inquiries... but only 4 hits over 12 months, all over 9 months ago
Deal Addict
Oct 8, 2012
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TBD
coolintheshade wrote:
Jan 22nd, 2018 4:08 pm
Hopefully this is a sign that TransUnion will kill off the TransRisk Score once and for all.
Really tired of hearing the same posts every day, “why hasn’t my TransUnion score moved in over 6 months”.
“Why is my TransUnion score 100 points lower than my Equifax score”

That model needed to be killed off ages ago.
I have a hunch that those questions and threads aren't going anywhere lol. I agree, I'm tired of it as well.
Newbie
Jan 19, 2018
31 posts
5 upvotes
I like the new model, somehow my credit score jumped 50 points with this new model...
As per new model my credit score is 887..not sure if it is correct..
Seems little inflated ...

My wife score has jumped 30 points to 853...hmmm

The only thing we did was applied for secured line of credit in 1st week of January, which was approved in 2nd week.
With my limited understanding, if bank made another inquiry in January for this line of credit, our credit score should have a negative impact..

What do you guys think, can this be true representation of credit score or is it inflated ?
Newbie
Jun 30, 2008
5 posts
Canada
I figured I'd check here to see what was up. Credit score which usually hovers around 790-820 went from 790 last I checked earlier this month to 894 today and nearly the same with my wife's (showing 876). It suggests it was 892 a month ago which was not the case so this change appears to be retroactive using the new scoring method. Oddly I had applied for a credit card this past week and the hard inquiry shows up yet the score has increased.
Newbie
Jan 19, 2018
31 posts
5 upvotes
Seems like there is an issue with the new scoring system...
Doesnt look correct to me
Jr. Member
Jun 6, 2016
123 posts
53 upvotes
Scarborough, ONT
Seems I've taken an 80 point nosedive with this score model... Maybe due to 3 hard inquiries in 3 months?
Is this now what lenders look at when they pull TU?

EDIT: Reading that creditvision paper is actually kind of interesting, and it seems it really would better reflect a persons credit worthiness over time.
Example: My friend recently bought a house... When she applied for a mortgage she was initially declined since all her credit cards were at the limit. The mortgage broker told her to borrow money from people to pay off the cards, reapply a month later, then take out cash on the cards again to pay people back after the mortgage was approved. Obviously this is BS tactics, but it worked for her approval. This new model would stop people from pulling that kind of stuff.
Sr. Member
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Jul 9, 2016
663 posts
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Peterborough
Alex383 wrote:
Jan 22nd, 2018 7:57 pm
Seems I've taken an 80 point nosedive with this score model... Maybe due to 3 hard inquiries in 3 months?
Is this now what lenders look at when they pull TU?

EDIT: Reading that creditvision paper is actually kind of interesting, and it seems it really would better reflect a persons credit worthiness over time.
Example: My friend recently bought a house... When she applied for a mortgage she was initially declined since all her credit cards were at the limit. The mortgage broker told her to borrow money from people to pay off the cards, reapply a month later, then take out cash on the cards again to pay people back after the mortgage was approved. Obviously this is BS tactics, but it worked for her approval. This new model would stop people from pulling that kind of stuff.
Agreed. It would also work in people's favour who are generally trying to do better. If of the 6 years of credit history on someones file, the first two or three were complete R9 garbage, but they've since turned a new leaf and have a couple credit cards they've used extremely responsibly for the last 3 or 4 years, it'll look more favorably on them than some auto-deny algorithms currently used. It's silly that on some models your score will jump up after a 6 year old paid collection falls off. On some new models paid collections don't even act as a negative factor.
Sr. Member
Feb 17, 2017
583 posts
303 upvotes
Calgary
This one doesn't seem to rate charge cards (on utilization) so harshly either, which does seem to be an issue with a lot of credit scoring models.

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