Credit Karma is a for-profit business that uses only two of the big three credit bureaus and your score might not be entirely accurate. It is offering you something for free, but it is making money elsewhere.
Second, Credit Karma only updates its scores once per week. For most people once per week is plenty, but if you’re planning to apply for credit in the near future, you may need a more timely picture of where you stand.
Third, some sites have reported that the Credit Karma score is within 1% of your FICO score. Credit Karma uses the Vantage 3.0 scoring model.  Credit scores come from different scoring models, including FICO and Vantage 3.0. More than 90% of lenders prefer the FICO scoring model, but Credit Karma uses the Vantage 3.0 scoring model.
FICO is the most popular credit score used by lenders and creditors and the Vantage 3.0 does not use the same algorithm and can give the viewer a misconception that their score.
Fourth, the Vantage 3.0 score is accurate, it’s just not the industry standard. Credit Karma works fine for the average consumer, but the companies that will approve or deny your application are likely looking at your FICO score.
Finally, understand that Credit Karma’s business model is to earn commissions off loan products you purchase through its site. Although the site positions itself as a trusted adviser, its motivation is to sign you up for new loans. Overuse of credit can have financially catastrophic results. Use Credit Karma to monitor your score – not to received unbiased advice.
Millions of people use Credit Karma to track their credit score and it is a good tool to monitor your credit score on a regular basis. Stay proactive and monitor your credit regularly so you can catch inaccuracies or fraudulent information. Make sure you dispute these inaccuracies before applying for credit. Not only does it show you your credit scores for free, but it also gives you suggestions to improve them.
However, if you’re gearing up to apply for a loan or mortgage seek additional information. Track down your FICO scores and monitor them alongside your Vantage 3.0 score. That way you’ll have the fullest picture of your financial profile.