Equifax, TransUnion, Credit Karma, Borrowell: Should you trust your credit score? (Marketplace)

♪ ♪>>Asha: Do you know
what your credit score is?>>Yes, I do.
>>It’s actually… It’s good.
>>Asha: Do you want to say it?>>No! It’s good! It’s a good credit score. It’s above average.>>Asha: Your credit score. It used to be taboo. Now it’s out in the open. And how did you find it out?>>Credit karma. I use Borrowell, so they
send me a monthly report. Credit Karma and Borrowell.>>Asha: If those names ring a
bell, it’s likely because of commercials like these. Seems our score will
decide our future.>>You know, I’m wondering if
now is the right time for us to have a kid. I’m not sure we’re
ready financially.>>Just check your credit
score for free at borrowell.com.>>Yeah!>>Asha: Lenders and landlords
use scores to help decide how financially risky we are, and
what interest rates to charge. So millions of us are signing up
to learn our three digit number. But are all
scores created equal? And just how reliable are they? Our credit score crew is
about to test that out. Michael Deng. He’s a brand ambassador and
goes by his last name only. Kristal Ramroop, a logistics
manager with two young kids. And Raman Agarwal. Owns his own company
and employs 55 people.>>Asha: Credit score crew. How are you doing?>>Great!
Thank you.>>Asha: Why are you three
interested in your credit scores?>>One should know how
much score they have. If they are borrowing money from
the bank, it is very important to credit score,
play a big role.>>This is something
close to home for me. I mean, I like being
educated on things in life.>>I don’t know my credit score.>>Asha: You’ve never
checked your credit score?>>I’m going in as blind! That’s the game plan.>>Asha: We’re
testing four companies. Two give out a free score. Credit Karma, based in the US. And Borrowell, a
homegrown Canadian company. And we’ll test two that
charge for a credit score. Equifax and TransUnion.>>Asha: Here’s the scoop. The higher your score, the
higher the chances a lender will loan you cash or
give you a credit card. It’s based on many factors,
including whether you pay off bills on time, how much money
you owe, how long you’ve been borrowing, what types of credit
you have and how often you ask for new credit. First up, Credit Karma.>>I got it.
>>Asha: You’re in?>>I got it.
762.>>Asha: 762 is very good
according to Credit Karma.>>Yes, it is.>>Asha: The
karma’s alright with you.>>Yes, it shows my credit cards
here, too, all my credit cards. Everything it shows.>>So, mine’s fair,
Which I expected. I do keep up with it, because I
did file for bankruptcy, so it shows me the information on my
bankruptcy and when it will be discharged and
closed, which is great.>>Asha: Let’s see
what’s going on with Deng. Wow!
What? Can you read out
your score, please?>>811.>>Asha: And it says you are…>>Excellent. I think.
I’m confused. I don’t know. I guess I’m doing
something right.>>Asha: Our testers
don’t just get a score here. Credit Karma
serves up credit cards.>>I’m at 19.97 for a
President’s Choice card. MasterCard.>>Asha: And you?>>Canadian Tire
for a 19.99 percent.>>Asha: And Raman?>>American Express card. It’s called Cobalt Card
at 19.99 percent interest.>>Asha: So, let me
get this straight. You are all being offered the
same interest rate, and you have different credit
scores across the board.>>Correct.>>It’s strange.
>>Asha: Does that make sense?>>Not at all.>>Asha: It says right on the
site, an offer based on your score. Next up in our test,
Borrowell, another free score. There you go. You’re in!>>637. Wow. What did I do?>>Asha: Raman’s stunned. He was just at 762. Now his score has
dropped 125 points. What happened?>>I have no idea. I have absolutely no idea.>>Asha: And look, on the other
credit score, Credit Karma said you were doing very good.>>Correct.
>>Asha: Now, you are…>>It’s showing
I’m below average. I cannot understand this.>>Asha: He’s worried because if
he wanted a loan, his low score could mean a
higher interest rate. Kristal’s score tanks, too. By almost 100 points.>>It’s a huge difference.
It’s shocking actually. Say for example you were on
Credit Karma and you go in with that credit score thinking, you
know, you’re doing pretty well and then you try something
else out and it’s the complete opposite, it’s
kind of deflating.>>Asha: And Deng is
also going downhill.>>I am now an average Ontario
person at 770 apparently.>>Asha: I mean, you’re still
excellent but you’re not as excellent as you were with
Credit Karma, sorry to say.>>Exactly. So I wonder what I did in the
past two minutes to lose it.>>Asha: Check it out. Borrowell recommends credit
cards, and lots of loans, too. And what kind of
interest rates are there?>>Well, it says here, it’s
pretty high, though, Fairstone. I don’t know who they are,
asking for 26.99 percent interest.>>Asha: And while Kristal has
the lowest score, she gets the biggest offers. Loans up to 60 grand. That’s a lot of money.>>It is.>>Asha: Okay, let’s pull out
the plastic for the next two scores. They cost about 20 bucks. Starting with Equifax.>>So you just hit
“view my product now”?>>Asha: Kristal’s
score is back up.>>Yeah, well, I feel like
Equifax, like, you are paying, now you’re paying for a product
that it should be more accurate.>>Asha: Raman’s paid
Equifax score is also up.>>Strange. I’ve got a better
score here now. What the hell they are
showing me a different score?>>Asha: And Deng?
Keeps on sliding.>>It’s about an 80 point
difference from what we started with. So I started off
my day very well. I had, like, 811 and every
little test I did it just went boop, boop, boop.>>Asha: So, what’s in
store for our final score? It’s from TransUnion. Do you think this credit score
will be better or worse than the others?>>Hard to say.>>Asha: Yeah.>>I don’t know.
I’m kind of scared.>>Asha: Oh, wow.
>>Yeah. So mine went into, ah,
very poor on TransUnion.>>Asha: And the
grade score is F.>>Yeah, it’s F.>>Asha: What do
you think about that?>>Disappointing. I mean, it’s gone, we’ve gone
through four different credit sites and I mean
nothing is really consistent.>>Asha: But
Deng’s on the rebound.>>All right, I’m in.>>Asha: Let’s see.>>Back up.
I am at 7…>>Asha: 98! Good stuff, man!>>Get it!>>Asha: This is looking up. Unlike the free sites,
TransUnion and Equifax aren’t pitching credit cards or loans.>>This is more just
a plain information.>>Asha: And Raman? He’s up by two points. So, here are the final results. Three testers,
four companies. Four different credit scores. These roller-coaster results are
making our testers scratch their heads.>>Does every company have
their own formula to it? Or there’s one
standardized one for everything?>>Asha: We’ve shared our
results with the companies in our test. Credit Karma declines to come on
camera and won’t comment on our findings. TransUnion and Equifax won’t
give us an interview either. And Borrowell? Their CEO, Andrew
Graham, is about to step up. [ ♪♪ ]>>It really is a confusing and
frustrating system in many ways. I’m really sympathetic to
that and that’s really why we’ve tried to make it
more transparent. So, what we’ve done is made it
possible for consumers to see that information quickly and for
free so they can advocate for themselves.>>Asha: But Kristal wonders
how she can advocate for herself without knowing
which score lenders use.>>Do they go based on the free
websites that you can access or do they go based on the bigger
guys like TransUnion or Equifax?>>Asha: Good question. Consumers are wondering
what can we trust, then? What score can we trust? Which company is giving
us the clearest picture?>>There are many different
types of credit score in Canada and they’re calculated
slightly differently. Every lender will have their own
secret sauce for how they make loans, and they may use a
different type of score. The score we give out is a
very commonly used score.>>Asha: Same deal with Credit
Karma, Equifax and TransUnion. They say their scores are
used by banks and lenders too. But which ones? They won’t tell us. It’s time for test number two
with our credit score crew. All right. You’re going to take these
credit scores, we’re going to send you off in some
real life situations. I will be coming with you
but hanging back a little. We’ll see what happens. Let’s go. We want Deng to find out
if he can score a set of wheels with his credit scores. Like this Credit Karma
commercial suggests.>>Let me hop in and
get a feel for it.>>Asha: So, he’s meeting
with auto sales manager Ronan Frawley.>>I have always wanted a
high-end car where I can feel the speed underneath my feet.>>Well, you’re in
the right place.>>Yeah. I’m just wondering if these
would do anything for me?>>These are credit scores
you have printed online?>>Yeah, man, these
are the free ones.>>Yeah. Okay. These are good to know for
yourself personally, but really they don’t bear any weight in
terms of an automotive purchase. We’re gonna be looking at many
other variables including credit score. But from an automotive lender’s
perspective, this really wouldn’t have any impact
whatsoever on lending.>>What about the one I
pay for on a monthly basis? Does that do anything for me?>>No, not at all. It’s not worth the paper
it’s printed on unfortunately.>>Oh, man.>>Asha: Turns out the car
people request their own score on you which could be different.>>Nothing like the commercial
I saw online on Credit Karma, swipe and you get a new car. Swipe and new car.>>Yeah.
No, not quite.>>Not quite.>>Asha: So Deng’s scores
don’t pass the test drive. But at least he gets to
take a car out for a spin. Next up, Kristal and
I are in Toronto’s Condotown chatting with property
manager Sabine el-Ghali.>>For your properties when you
go to rent them out would these credit scores be
something you would consider?>>We don’t accept
outside credit reports. Some people would actually
submit these and then I have to tell them I’m sorry
I can’t accept it. Thank you for submitting it. We have to do it ourselves.>>Asha: Listen up. Sabine’s looking for
something specific.>>It gives you a number but I
don’t see it saying a Beacon score anywhere on them.>>Asha: Say what? There’s something
called a Beacon score?>>Sometimes when we run it
it’s even higher than what they presented.>>But not lower?>>We’ve had lower as well.>>Asha: Okay, then. Kristal’s four
scores don’t cut it here. So what’s Raman going to hear
when he shows his scores to mortgage broker, Vince Gaetano? Vince owns monstermortgage.ca.>>Let’s take a look at them. Okay. This is a client score and not
necessarily the same score I would secure when I
pull my credit bureau. This is a general score. As a mortgage professional
I pull a Beacon score. That’s the score our lenders
want us to present to them with the mortgage application.>>Asha: It’s that
Beacon score again. It’s used by most
lenders in Canada. But here’s the catch. It’s only available to
businesses and it’s kept secret from you and me.>>All these scores that are
being provided to consumers free or by paid purposes are not
necessarily Beacon scores.>>Asha: This is
your Marketplace. [ ♪♪ ]>>Asha: Three testers, four
companies, four different credit scores that don’t
seem to mean much.>>Why don’t we come on in?>>Asha: Thanks to this mortgage
broker, Raman’s going to find out his secret Beacon score.>>Why don’t you have a seat?>>Sure.>>Asha: It’s risky because a
business checking up on him could lower his score. But he wants to know,
so he’s going for it.>>So, Raman?
>>Yes.>>I have your score.
>>Okay.>>I can’t show you the score
but your Beacon score is a lot different than any of those four
reports you showed me today.>>Let me ask you, is
it higher or lower?>>It’s extremely higher.>>Oh, my God.>>And you’re in the top ten
to 15 percentile of Canadians. And I have an obligation to
keep the reporting of the credit score private.
>>I see. You can’t disclose
the numbers at all?>>I can disclose the number. Your credit score is 829.>>Oh, my God!>>Asha: Wait.
What? That’s way higher than
all his other scores. We take that news to Borrowell. One of our testers went to a
mortgage broker and had a hard credit score check and
it was a Beacon score. His Beacon score was 829. Borrowell’s score was 637. So the Beacon score is almost
200 points higher than the score he got from your company. Can you explain that?>>There are many different
types of credit score in Canada and they are calculated
slightly differently. It is a complicated system
and we’re the first to say it’s frustrating for consumers. We didn’t build the system. We’re trying to help add
transparency to it and help consumers navigate it.>>Asha: Then maybe he can
help answer this next question. All our testers took their
scores to a car dealership, a mortgage company, along with
a property rental management company. All of them said their
credit scores were useless. They couldn’t use them,
they couldn’t run them. What do you make of that?>>If you talk to any lender,
any bank that’s making lending decisions, they’re
absolutely using credit scores.>>Asha: So, which
credit score are they using?>>There’s a variety of
credit scores in Canada. The credit score we give is a
mainstream credit score used by many of the banks.>>Asha: Mainstream how? If we’re being told it’s
not being used, how is it mainstream?>>It’s absolutely being used.
We’re using it for one. I mean, look, the good news is
if you are doing things like paying your bills on time and
not maxing out your credit cards you’re gonna see improvements
across any kind of credit score you pick. So, I think
that’s the power here. [ ♪♪ ]>>Asha: But who’s
really got the power? Seems like Americans
may have the upper hand. Remember that
secret Beacon score? It’s not a secret in the US. They call it a fico score there
and consumers can get it easily. And remember those offers
coming through the free sites?>>19.97.>>26.99 percent interest.>>Up to 59,995.>>Asha: Borrowell and Credit
Karma get a cut of any offer you are approved for by a loan
company and Vince Gaetano has a lot to say about that.>>The end result is you are
giving them permission to pull your report. And that data is very valuable
to lending companies, to marketers, to anyone that
needs to sell you financing.>>You have many loan companies
out in the marketplace that are offering these types of services
because they want to market to you at the appropriate time when
you’re at your most vulnerable.>>We show his
concerns to Borrowell.>>It really doesn’t
reflect how we run our business. We want to connect people to the
best financial products if and when they need them. Many, many, many people that
use Borrowell have never taken a financial product with us
and that’s totally fine.>>Asha: And get this, if
you can find the fine print on Borrowell’s site, it says their
score may not be the same score used by third parties and is
provided to you for educational use. Bet you missed it in the
Credit Karma commercials, too.>>The score you see on
Credit Karma is provided for educational purposes.>>And may be different than
the score your lender uses. [Laughter]>>I think they should maybe
advertise that a bit more, that it’s not necessarily the same
score that other agencies or people pulling
their score would see.>>Asha: And those TransUnion
and Equifax scores you pay for? They’re also for
educational use.>>What is someone’s
actual credit score? Who knows that?>>It’s hard to fathom that a
company would exist to give you a credit score that may not
be accurate and may not be completely needed. [ ♪♪ ]

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100 thoughts on “Equifax, TransUnion, Credit Karma, Borrowell: Should you trust your credit score? (Marketplace)

  1. To be fair, with identity theft on the rise, it's actually a good thing to have at least an indicator just in case someone is screwing with your credit. Credit bureaus are also notoriously incompetent in keeping their records on people straight. Through these tools I was actually able to find out that they accidentally put my sister's student debt under my credit report. Took me months to get it corrected.

  2. It’s shocking that a 17 minute video on credit scores gets the basics wrong.

    To clarify:
    CreditKarma & Borrowell are are not credit bureaus, they are just portals that report scores of individual credit reporting bureaus.

    Equifax, TransUnion & Experian are credit reporting bureaus. Their scores could be different as they collect data from different sources and at different times in a month.

    Beacon or FICO is a scoring model and may use all three credit reporting bureaus individual scores to arrive their own Beacon/FICO score

    That simple!

  3. In the U.K, cash is king…. everyone gets a fair chance, even those like myself on low income…..these credit score systems are basically just so the companies can keep consumers in debt by continually borrowing and spending…

  4. I have an 822 and I've never paid a dime and interest. I've never carried a balance. If you're going to be carrying a balance, you shouldn't have a credit card.

  5. Interesting fact. Borrowell states in their app that the score is provided by Equifax, while Credit Karma states theirs is from TransUnion. I also did see the credit request I made get reflected in the Credit Karma (TransUnion sourced) score and detailed breakdown. So there is a linkage and the scores reflect reality. It good to know that they are not the same as those provided to lenders, however. This also changes the value proposition for using these services. They help you manage your rating to some degree, but only so far as good financial practices and being able to see indidivual detailed credit information will take you. I enjoyed this episode and found it useful.

  6. My bank gives me my foco score and it’s always lower than the score any other company gives me. And even though they tell you how they get the fico score I find it hard to understand. Credit karma is much easier to keep up with

  7. My mortgage lender told me they pretty much only use Experian's FICO Score, it's sometimes lower and sometimes higher than my TransUnion VantageScore and it updates less frequently.

  8. Why don't they teach us this in school, So we can really be prepared? And why they keep the list a secret for us not to know??? If we knew then we know what to do and be more responsible and etc. We can all win¿? I learned the hard way. Now I have very good credit etc. But boy I remember when I use to be so ignorant when it was for credit 😔 Still learning and investigating and etc. Like come on. What a mafia🙊🙉🙈

  9. Elephant in the room Risk Factor
    This is a jaded and bias view of credit
    I've sold houses I've sold cars I've got credit cards
    when you go to apply to a retail store chain they pull your credit and calculate it differently
    When you go to apply for an auto loan they pull your credit and it calculates it differently
    When you go to apply for a home loan they pull your credit and it calculates it differently
    One thing I haven't seen any of in this video is the buyers viability how much they make a month
    If you make a substantial amount of money say 100 plus thousand a year and you pay your bills on time yeah your scores going to be 800plus
    But if you make $100,000 a year and you don't pay your bills yeah your score is going to be 600 or less to lenders it's risk factor
    how long you been at the job how long you been at your current residence how long have you had payments
    I got a $4,000 personal loan had it for 2 months my credit score went from 0 to 750 but my income was only $2,000

  10. No one would give me car loan for credit score of 750.
    Only my credit union gave me the loan cause they know my credit history well in detail and they know how much money I have in my accounts. I think if you have a stable job and money in your accounts, that’s when the loan application is usually approved not because you have a high credit score.

  11. So why do we have to pay for this services or even check the free ones if they don’t really matter since lenders, dealers etc rely on their own reports. SMH 🤦🏾‍♂️

  12. I respect Borrowell CEO for been a man enough to come on camera and answer questions. Kudos sir. 👍🏿👍🏿👍🏿👌🏿🙏🏿

  13. Its not that simple, even FICO has 49 'flavors' https://blog.credit.com/2015/04/how-many-fico-scores-are-there-114574/, taking into account different variables. But yes, in general it is the most widely accepted US score.

  14. Credit history, utilization percentages, and amount paid determines trustworthy-ness to lenders, your credit score means little in comparison.

    Building a credit history over years, making card payments on time, not over extending your borrowing, and having different kinds of loans on your report helps show you are reliable.

  15. You think those companies will give you anything for free. No way. They resell your information to lenders , banks , credit card companies and so on

  16. If you don’t know about the equifax data breach, then please look into it! Link below

  17. Credit score company’s act like a affiliate to the banks and private borrowing firms. They simply introduce you to credit cards or loans and they make a profit for a referral. Simple as that. That’s why you see ads next to your credit score. That’s why they can’t offer you a fix API on the ad. Only after you perform the “hard credit search “ the beacon one they show you the API. Clever business model

  18. You wanna beat the credit system? Have patience. Save your money up and then buy cash! I knew the credit system was a scam when I went to buy a car and hey had a totally different score than equifax, transunion, experian, and credit karma. When I asked what their lending went by since this big auto maker dealership financed their own auto loans, they told me that they use their own credit ranking system instead! Companies do what they want to give themselves advantages. If you are generally responsible (even if not perfect), you can still get plenty of things regardless.

  19. The actual way credit scores work are not public knowledge. Companies like Credit Karma use an accepted model, but they are not going to match your real score exactly. Also, it doesn't even matter. When you apply for credit the lenders are not really looking at your score anyway The lenders each use their own models and just looking at your history. They have their own criteria for whether or not you will get your loan and what your rate will be and it's based on all the account details in your history, not some number.

  20. If there were such a thing as a Debit Score, then nobody would focus on being in debt all the time and the business model of the banks would crumble.

  21. I like how they are all concerned with the credit card interest rates…. These people's credit scores should be at 300. They're dumb.

  22. Instead of fixating on that three digit number, focus on what is in your report. Know when things will drop off the report and know what things added will improve it. The people in this video are very simple minded.

  23. It's not rocket science. And yes, having a very good to excellent credit score does make a difference. You will never ever under any circumstance see anybody with poor credit carrying World Elite Mastercards or Visa infinite cards. And practically most credit cards in Canada and the US have an APR of 19.99%. Its your score that determines the types of cards your eligible for, not your APR. Your not applying for a mortgage. I had to stop watching after 4:00 as the lack of knowledge and common sense was beyond absurd.

  24. So basically, if we are in the US, we need to use myFICO (since it’s apparently the same as BEACON score in Canada) or something to get our REAL scores.

  25. Credit score is all conjured up. I havent borrowed money for anything in 25 yrs. Yet i have a score much higher than 0. WAKE THE **CK UP!

  26. Credit Scores are based on your credit report which we can all see for free. Why wasn't this mentioned in the video? It is upsetting that this was not discussed, as the credit report makes up how lenders give out financing. Please answer this.

  27. I thought borrowell pull their scores thru equifax and credit karma pulls from transunion? But the difference is huge wow.

  28. I haven't checked my credit since 2009, I don't even use my SSN, I tell everyone I don't have one. You know there's no law requiring one to have a Social Security Number. If you want to open a account make the Agency or Business provide you with a TAX Payer Identification number..

  29. I remember when I first migrated to Canada this was one of the new things to me cause back where I came from we use cash all the time. I applied for a credit card at a bank and they denied me one due to not having a credit history and Im like what is credit history, what is that? Lol

  30. Clearly the host didn't take them to a bank to apply for a credit card.
    and you can get your free credit report once a year

    As the person from Borrowell said, there are a variety of scores. for example, credit card issuers will not use the same score as a property leasing officer, an auto loaner, or an insurance company recognizes. for example, when you buy a laptop, the standard you have in your mind must be different from that when you are looking for a used car, unless the only concern is the price tag. Money lenders behave the same way, they know what they want to look at and what is important to them.
    I believe the credit score you get from different companies will vary because those companies cannot get all your credit data at the same speed.

    By the educational purpose, it means
    1. no hard inquiry = no business involved, your credit score will not be affected;
    2. your behavior in the past few months makes you deserve that kind of score. in other words, if you have a good business habit, like paying your bills on time, managing your financial status wisely, you will have a better and better score. but if you told the bank that you couldn't pay off your debt or let them take your car, your house, or your other properties to an auction, even though you don't need to pay all the money you owe, your credit score will definitely go south, which will make it harder for you to borrow money from the next money lenders.
    Does this make sense to those who still think the scores they pull up are 'useless' or the score system is a scam?

  31. Just another layer of scams, to keep the working class held down even further. Things are only going to accelerate with technology

  32. And still nobody knows why arent these company's burned to the ground together with their owners, just like nobody knows their credit score

  33. At 43, never owned a credit card, I only use my debit card once when I get my wages, rest transactions are done by cash.

  34. Trans union is absolute trash. They mixed me up with someone else and my bank caught the mistake years later. I told them about it. They sent me an email about the results of the Trans Union investigation and it was unreadable… gibberish… i shook my head and said this is a company the bank uses

  35. I dont get it, why the americans are buying stuff when they dont have the money.
    Thank god this isnt a thing in the EU. We only loan for a house, maybe a car (but thats a rarety)

  36. Credit card interest are high because there is no physical asset tied to them that the lender could take back to become whole again. This is also why auto loans and mortgage interest rates are so low. Interest rates are a function of the risk the lender takes to lend to you. Also, if credit card interest rates are such a big deal to some, there are plenty of cards with 0% for 12-18, but suck as for every day use. If I were a lender, and I knew that credit card interest rates were important to you, I wouldn’t lend to you. Why? Because you probably want to hold a balance on these cards, and I don’t want to be complicit in your own financial suicide.

  37. Seems like the best point of this show is to shop around for a loan. Think most would do that already for the lowest interest.

  38. I consider myself very familiar being a bank employee with reports and scores. I have never trusted Credit Karma and Borrowell.

    The scores are not calculated the same. Those companies are using their own proprietary scoring system with probably a algorithm.

    Another consideration would time. Credit score evaluate the information at hand. Some credit reports contain information from the 1980s. The "bad" credit is totally erased after 7 years or earlier.

    Judging by my experience of reviews thousands and thousands of these reports. The score could move significantly based on when the companies check for it. The majority of the score looks at the recent history for the past 2 years. I have seen people manage well their debts in recent months but drop in score since they lost past great months from 2 years ago.

    I would also recommend visiting FCAC (government agency) for more information (google FCAC credit report) about credit bureaus and scores. It will help you understand how to obtain and important criteria.

    In conclusion, it is a report and score. It will only help to obtain pre-approvals or quick approvals and could affect interest rates especually for products like a personal lines of credit. A human still exists and many other considerations around your capacity to pay and capital/assets will play important factors.

  39. As far as I know all major banks will buy from Equifax and Trans Union. I would guest-timate around 60% Equifax and 40% Trans Union.

    The car loan applications will drop the score. Funny to ask a car salesman for credit advice. A honest car salesman would tell you that they can financed you for almost all the time. The rates would be based on your score with their loan system for the banks on it.

  40. I sympathize with consumers and banks. Banks wish to keep private the scoring to keep a competitive edge and avoid consumers trying to game the system.

    Bottom line, I would recommend 1-pay on time 2-avoid high balances at ALL time (35%=best and 70%=okay) 3-avoid applying often for credit.

  41. Please DO NOT recommend the US system to us. It has become a joke. People obtain 100,000$ in credit cards and also complete other absurd actions chasing score.

  42. The same US system with no fraud protection and 5,000+ banks who created the 2008 recession. Nope I am fine with our way. The world was trying to replicate Canada after 2008. Now CBC thinks we should replicate the US.

    Why not also push for those Conservative proposals for 40 years mortgages……

  43. Ive come to a conclusion that I don’t need to borrow money from anyone . Once i broke the debt cycle I never had to borrow money again. Trust me make clearing your debt the #1 objective .you cant enjoy today and the future at the same time , suck it up for a couple of years and you will be so happy . I hope my comment helps someone
    PS you can look up Dave Ramsay’s Total Money Makeover summery on YouTube to get the ball rolling

  44. Don’t forget what type of occupation that the borrower currently holds. The lenders are looking at that as well. If someone has “excellent to above average or good” credit score with low paying job….this will impact the ability of borrowing to purchase that so-called high-end or average vehicle and/or to buy a decent house with ideal an interest rate. Bottom line, lenders will usually take everything into consideration along with credit score.

  45. How did these three private companies become the go to standard that potential funding entities trust and give power to?

  46. Come on Krystal. You know you are a horrible borrower and filed for bankruptcy. You know your life will be a mess for 7 years. Stop making that face. Good luck girl!

  47. LIFE HACK: you can call your credit card company and ask then to lower your interest rate and they will actually do it. I’ve done to all my credit cards from 24% down to 10%. Try it and let me know how it goes.

  48. This is the dumbest, most incomplete, misleading reporting I have ever seen. Either the reporter is a scam artist or she didn't do her research.

  49. The credit system is simply another way to control individuals and completely untrustworthy.A person is far more then a set of numbers and success cannot be monitored by credit scores.

  50. Expecting to go to apply for loans with a printout of what credit karma says is your score and not having your credit ran by that institution first??? The idiocy😂😂

  51. Personally I care about my Credit, I get my scores from Transunion, Fico, Equifax and Credit Karma. they vary by a few points in difference, while credit karma does seem to be lower on average. It makes borrowing much easier and cheaper should i ever need money but i try to pay off my loans ahead of time. Also in my city Credit is a must even to just rent most landlords ask for your Fico Score to even be considered for a lease, of course there are many other variables but most consider you depending on your score. The majority of banks use Fico, and TransUnion i got my my car loan at 2% and use my actual cash for other thing i need.

  52. Credit score companies are a nightmare. Equifax/Transunion are similar scores for myself and my spouse. My Id was stollen in the Desjardins fiasco. Someone attempted to get loans all over and that was reflected on my credit report. Those inquiries were removed, I learned that a lot of things can impact your score. I signed up for a new cell company, after a month I switched due to the poor service, those 2 credit requests in such a short time can affect your score. One of my banks allows me to see my transunion score for free in their app. Most lenders, in my experience use Equifax.

  53. They forgot Experian out of all credit bureaus. At least my bank directly told me they use Experian to issue me my credit card although to be honest my credit is bad yet with a somewhat low interest rate compared to what these people got offered on the credit card they were referred. I don’t understand the credit bureaus at times.

  54. I don't necessarily think that people should focus on the score itself. You should be able to gauge where your score would be. The handy part of these websites are to monitor identity thief. How many credits cards do you? Did you open all of them? That's pretty important now since there are so many hackers.

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