Why Is My Credit Karma Score Lower Than Fair Isaac Score?

VantageScore can differ from your FICO score because the two models weigh the same data points in distinct ways and often draw from different bureau files. Credit Karma's VantageScore usually pulls a single TransUnion report, while many lenders calculate a FICO score using a blended file from Experian, Equifax and TransUnion; the model also emphasizes trended payment behavior, which FICO may ignore.

VantageScore updates may appear later than FICO because Credit Karma refreshes its scores on a set schedule, whereas lenders can receive real‑time updates from the bureau that supplied the FICO file. A newly reported late payment, for example, might lower a lender's FICO instantly but not show on Credit Karma's VantageScore until the next sync cycle. Understanding VantageScore versus FICO

Credit Karma generates its VantageScore from the TransUnion and Equifax credit files, while most lenders calculate a FICO score using whichever of the three major bureaus - TransUnion, Equifax, or Experian - matches their underwriting model.

• Credit Karma pulls data only from TransUnion and Equifax; any account reported solely to Experian never influences your VantageScore.
• Lenders may select any bureau; mortgage lenders often rely on Experian or TransUnion, auto lenders may favor Equifax, and credit‑card issuers frequently use the bureau that supplies the most recent update.
• The specific FICO version (e.g., FICO 8, 9, 10) is often tied to a single bureau, so a consumer can have three distinct FICO scores depending on which file the lender requests.
• Since Credit Karma's VantageScore updates when either TransUnion or Equifax records a change, timing gaps can cause the score to diverge from a lender's FICO built on a single‑bureau snapshot.

Update timing can make your VantageScore and FICO score diverge because each model refreshes on a different schedule. Credit Karma pulls the latest TransUnion data and often recalculates VantageScore daily, while most lenders feed information to the bureaus on a monthly cycle that FICO uses for its next update.

For example, a credit card opened on a Thursday may appear in your VantageScore that evening, but the same account might not affect your FICO score until the bureau processes the lender's monthly batch. Those lagging updates create the gaps you notice, which you'll explore further when learning how to spot accounts reported to one bureau but not another.

You spot accounts reported to one bureau but not another by pulling each credit‑report file and comparing the line‑items.

How to compare the reports

• Order free reports from Equifax, Experian and TransUnion (or use a paid service that aggregates them).
• Open the three PDFs side‑by‑side; sort each by creditor name.
• Highlight any creditor that appears in only one file.
• Note the account type, balance and status; missing data often means the creditor reports to a single bureau.
• Use a spreadsheet or a simple 'find‑duplicate' tool to speed up the check.

Why this matters for your scores: Credit Karma's VantageScore usually draws from TransUnion (and sometimes Equifax), so an account that lives only on Experian won't influence the VantageScore. The same account will affect many FICO scores that incorporate all three bureaus, which can make the FICO score appear higher or lower depending on the account's risk profile. Identifying these mismatches lets you understand why the two scores diverge before you move on to utilization effects discussed next.

Utilization can hit Credit Karma harder because VantageScore often assigns more weight to the ratio of balances to limits and reflects balance changes on the bureaus Credit Karma accesses (primarily TransUnion and Equifax) sooner than the pulls that generate many FICO scores.

For example, a borrower with a $5,000 revolving limit who carries a $1,800 balance (36 % utilization) might see the VantageScore dip 15‑20 points after the next TransUnion update, while the same data on a FICO report that refreshes a week later could drop only 8‑12 points.

If the balance falls to $800 (16 % utilization) before the next FICO pull, the VantageScore may rebound quickly, whereas the FICO score remains static until its own reporting cycle catches up. Such timing gaps and the proprietary weighting mean a utilization spike often appears larger on Credit Karma than on a typical FICO view. (Consumer Finance Bureau explains utilization impact)

Late payments hurt both the VantageScore and the FICO score, but the two models treat timing and severity differently. A 30‑day delinquency can knock VantageScore down 30‑40 points, while the FICO score often drops 20‑30 points for the same event. Once a payment is 60‑90 days late, both scores may lose 70‑100 points, but VantageScore tends to register the negative faster because it updates more often on the TransUnion feed that Credit Karma uses.

Because VantageScore updates quarterly and FICO may wait up to 45 days for a new bureau file, the same late payment can appear on one score before the other, creating the gap you see after the 'update timing' section. After two years of on‑time behavior, VantageScore often restores points more quickly, whereas FICO can keep the blemish for up to seven years. This difference explains why a single missed bill sometimes drags your Credit Karma number lower than the FICO score you see elsewhere.

Hard inquiries usually drag a VantageScore on Credit Karma lower than they pull down a FICO score, because the two models count, weight, and refresh inquiry data differently.

1. Counting method - Credit Karma pulls inquiry data mainly from TransUnion, while most FICO scores draw from all three bureaus. If an inquiry appears only on Equifax, Credit Karma may miss it, yet the VantageScore still registers the unknown inquiry as a potential risk, causing a sharper dip.
2. Weight per inquiry - VantageScore 3.0 often assigns up to 5 points of loss for each of the first two hard pulls, then more for additional ones. FICO scores typically spread the impact across a 12‑month window, resulting in a smaller immediate drop.
3. Timing of updates - VantageScore updates within a few days after the inquiry is recorded, so Credit Karma shows the penalty almost instantly. Many FICO scores are refreshed only monthly, meaning the same inquiry may not affect the displayed score until the next cycle.
4. Model version differences - Credit Karma uses VantageScore 3.0, which caps inquiry impact after 12 months. Older FICO versions (e.g., FICO Score 8 methodology) may still count inquiries for up to two years, but they weight them lighter after the first year, so the long‑term effect can be milder.
5. Concrete example - A new credit card application generates a hard pull on all bureaus. On Credit Karma, the VantageScore drops 7 points within 48 hours because TransUnion reports the inquiry and the model applies its front‑loaded weight. The same person's FICO 8 score, pulled from a lender portal, falls only 3 points after the monthly refresh, reflecting the slower, less aggressive weighting.

These distinctions explain why you often see a larger dip on Credit Karma after a hard inquiry, even though both scores consider the same underlying event.

Most lenders use FICO Score 8 today, while many mortgage lenders have moved to FICO 9 and a growing number of credit‑card issuers now pull FICO 10 (or 10T); the version they choose directly shapes how your Credit Karma VantageScore compares to the score a lender actually sees.

• official FICO Score 8 overview remains the default for auto loans, credit cards, and personal loans, so lenders often request it automatically.
• FICO 9 is common for conventional mortgages because it down‑weights medical collections, which can improve the borrower's profile for a home loan.
• FICO 10 and 10T appear with newer credit‑card issuers and some online lenders; they add trended data, so recent payment patterns can shift the score differently from VantageScore.
• Each version weighs factors slightly differently, so identical credit behavior can produce a higher VantageScore but a lower FICO version, or the reverse.
• Lenders set approval cut‑offs based on the specific FICO version they use; misunderstanding which version applies can cause surprise denials even when your VantageScore looks healthy.
• Credit Karma displays only VantageScore (primarily from TransUnion), so you never see the exact FICO version a lender will pull, which explains frequent score divergences.

Closed accounts and authorized‑user additions often change the VantageScore and the FICO score in opposite directions because each model weighs the underlying data differently.

• When a credit card is closed, TransUnion (the bureau Credit Karma relies on) may keep the account in the 'open‑date' column for up to 24 months; VantageScore treats the lingering open‑date as ongoing credit, so the score can dip while the FICO score, which discounts closed accounts after 12 months, may stay steady.
• Adding an authorized user (AU) injects new payment history and credit limits into the file. VantageScore frequently incorporates the AU's activity immediately, which can boost or lower the score depending on the AU's behavior, whereas many FICO versions give the AU only a modest weight or ignore the AU altogether until the primary account shows a pattern.
• If the AU or closed account appears on only one bureau's file, the VantageScore (driven mainly by TransUnion) reflects the change, while the FICO score, which blends all three bureaus, may show a muted effect.

These quirks explain why you might see a lower Credit Karma number even though your FICO score remains unchanged, and they set up the next discussion on how identity mix or fraud can skew only one score. For deeper details, see VantageScore authorized‑user guidelines.

A 300 FICO score is rarely a permanent dead‑end; real borrowers who started there typically see dramatic shifts once they address the root causes and begin rebuilding credit.

Mike, 34, Ohio - After a medical debt sent his score to 300, he disputed the erroneous late‑payment, opened a secured credit card with a $500 limit, and paid the balance in full each month. Twelve months later his score rose to 580, allowing a subprime personal loan at 22 % APR, which he used to consolidate the medical bill.

Sofia, 27, Texas - A divorce left her with two collections and a 300 score. She enrolled in a credit‑builder loan, made the required weekly payments, and negotiated a pay‑for‑delete on one collection. Within eight months her score reached 620, qualifying her for a low‑interest auto loan (4.9 % APR).

Jamal, 45, California - A small business failure dropped his score to 300. He filed an identity‑theft report after discovering fraudulent accounts, froze his credit, and added a retail store card with a $200 limit, paying it off each cycle. After nine months his score climbed to 610, unlocking a business line of credit at 11 % APR.

These stories illustrate that, even from the floor of the 300‑850 range, consistent positive activity and error remediation can lift a FICO score into the tier where mainstream lenders start to consider offers.

When identity mix or fraud skews only one score, the VantageScore you see on Credit Karma can diverge from your FICO score because Credit Karma relies primarily on a single bureau (usually TransUnion) while many lenders pull a multi‑bureau FICO model.

If a creditor mistakenly attaches an existing account to the wrong consumer, or a fraudster opens a new account that reports only to TransUnion, VantageScore will reflect the error while the FICO score - fed by Experian and Equifax as well - may stay unchanged. Conversely, an identity‑theft record that appears solely on Experian or Equifax can depress the FICO score without affecting the VantageScore.

To untangle the discrepancy, pull your free TransUnion report from Credit Karma, compare it to the other bureaus' reports, dispute any unfamiliar accounts, and consider placing a fraud alert or credit freeze. The Federal Trade Commission guide to identity theft walks you through each step.