The Credit Scoring Site A bleak account 

What's so great about Credit Karma?

A federal government settlement, billion with a 'b' and bad spelling

| By Greg Fisher

Employers do not use credit scores, but lead generator Credit Karma, Inc. states

What people don't realize is [that] credit scores have become incorporated into many other aspects of consumer's[SIC] everyday life[SIC]. Insurance companies use them as a component of their pricing engines assuming high credit scores are predictors of less risk.

So, since you don't realize that, the company lays it all out for you in no uncertain terms (albeit with something very peculiar). WARNING. Next up: False statement.

The anonymous writer continues

Employers use them to screen employees and landlords demand a peak[SIC] of your credit file before they'll make a decision to rent that perfect apartment to you.

Atrocious grammar and bad spelling aside, that is falsity. The statement is false; simply, not true. Again, employers do not use credit scores. In fact, elsewhere, Credit Karma says, "There's a myth floating around that employers can pull your credit score to help determine whether or not to give you a job."

Credit Karma has it both ways today. But, they'll figure it out (ahem, eventually).

Legal trouble

Big Data. Its all the rage.

"But that's not the end of the Credit Karma story," says the U.S. Federal Trade Commission.

Huh boy. A mere mention by the FTC (yes, that FTC), can't be good. And this is an entire story, no less.




It's a tale about the It Girl of consumer reporting, and "Social Security numbers, dates of birth, and credit report data." Find information about Credit Karma's settlement with the federal government tagged "deceptive/misleading conduct."

This would be a good place to mention "truly" free (as the sales pitch goes) credit scores and reports.

But nothing stops this juggernaut. Somebody reported that the Silicon Valley darling is worth over a billion dollars. Of course, we all live in the same bombastic world (of fabulousness, and of woe, as the case may be). The same guys also reported, falsely (and, unfortunately, still do), "Many employers are checking job candidates' credit scores... "

Then, again, just three months ago, they falsely reported, "Majority Leader Mitch McConnell... "

But, back to our "story."

One. Billion. Dollars. Some (aka People Familiar With) might enjoy that kind of-- uh, information. For others, it is getting old.

This would be another good place to mention free. Free credit scores => $1 billion. Now that's karma.

Or is it?

See it actually coming out of his mouth

Here's a real lulu.

Credit Karma's CEO was on television hawking whatever it was he had at the time. The segment starts with the requisite attention build-up delivered by the interviewer: "Having good credit has never been more important than it is today!"

(And you can always believe everything, absolutely everything, the interviewer's company says. It's not like they live in a fantasy world, or anything.)

In this fine piece of news "NOW," Ken Lin, the Credit Karma CEO said

So, by using your card once a month-- for groceries, for gasoline-- that will show your card as being active, and that's less likely to get your cards closed down. What happens when you have closed accounts is that that will hurt your credit score. So, simply by using it, you can show your cards[SIC] as being active, and it keeps your credit account with more tradelines, and that will boost your credit score.

Phew. Brain dump. There's a lot going on there.

Indeed, the number of bank/national revolving accounts with balances is a factor of a FICO credit score.

But so is "Too many accounts with balances."

But, that's not good television. And a world with no credit, at all, kind of makes any metaphysical forces irrelevant.

Next, there's the notion that closing accounts lowers ones' scores. Oh, boy. It's the never-- never, ever, ever-- close credit cards idea. But, again, right on the official list: "Too many bank/national revolving accounts."

The list isn't just fodder for a credit scoring website, it is for adverse action by lenders: Credit denial letters that stick.

Getting away from credit scores for a minute, and thinking in terms of common sense, let's say you're running a bank (if you can imagine being at such a low point). A guy exercising his U.S. ECOA right appears in your lobby, and says: "I hereby request a credit card. Gimme one!"

You reply

  1. "You already have 162 accounts totalling $1 million in credit lines, so you must be a genius. OK!

    2. or

  2. "No."

To be continued. This page is getting too big.

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