If you haven’t discovered this handy feature yet, it’s not too late.
Yes, Credit Karma has developed a calculator like simulator to help you predict the impacts to your credit score by doing things like getting a loan, paying off a balance, running a hard enquiry etc. It is a “What if” scenario based calculator to help you predict the likely score from your planned actions.
There are a few reasons why this is helpful:
- Your credit score is your life. Nothing new here, everything we do in the US depends on your score. Getting a loan, credit card, buying a car, renting etc. What if I tell you have access to a crystal ball allowing you to see your future credit score (before it occurs). Imagine how differently you would act.
- Is the sign-on bonus for the credit card worth it? Debating whether to get that credit card sign on bonus or keeping the score high for a future home loan. This is about understanding your short term vs long term return on investment. It may sound great to get a 60,000 chase rewards points, but if f you plan to get a home loan or car loan, having a higher credit score can save you interest payments. By getting a credit card, there are impacts to your credit score. Why not visualize the impact and to help you make a more informed decision.
- Close the old account or not? Another important factor in whether to close an old line of credit or credit card is determine whether it will impact your “average age of credit”.
If there is one takeaway, I would recommend you go in to play around with in before taking action on your next financial product, deciding whether to pay less on your repayments, or consolidating accounts.
To access: Go to https://www.creditkarma.com/tools/credit-score-simulator
**
About me:
I personally have been a Credit Karma user for over 5 years. The app helped me build my credit score, and I passionately love talking about it. (So much I joined the company).
If you do too, please share with your friends.
Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
