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Credit Karma fined $3M by FTC for misleading consumers with credit card offers

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Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers

#71

Post by gnopgnip »

distantaidenn wrote: post #33

I have zero debt. Absolutely zero. However, I left the States soon after graduating university, and thus also have (had) no credit history there. Since I've been planning to return soon, I've been trying to build a history, so when the time comes, I can get a mortgage loan. The process of building a credit history has been enlightening and frustrating. I'm in the tech world, as most people in this forum is as well. I…

The banks don't just look at your credit score. They want you to be able to repay, and to be able to collect if you default. A regular job in the US, or 2 years as an independent contractor or self employed would qualify you for an unsecured credit card without a cosigner at most banks and credit unions.

One trick if you have family that trusts you is to have them add you as an authorized user. Then their multiple year old account history for that account will be part of your credit, bringing up the average age

Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers

#72

Post by uhuruity »

distantaidenn wrote: post #33

I have zero debt. Absolutely zero. However, I left the States soon after graduating university, and thus also have (had) no credit history there. Since I've been planning to return soon, I've been trying to build a history, so when the time comes, I can get a mortgage loan. The process of building a credit history has been enlightening and frustrating. I'm in the tech world, as most people in this forum is as well. I…

I am a grad student in the US and know several international students who qualified for unsecured student credit cards less than a year after first entering the US, with just a part-time student job as income.

Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers

#73

Post by NavinF »

distantaidenn wrote: post #70
NavinF wrote: post #66

Earlier quoted context omitted.

> have no reason to believe the credit reporting services are aware of my physical location So did you lie about your address on the credit card application? If not, that’s how the bank knows you don’t live in the US and that’s why you were rejected. Lemme simply: Either you need credit history in the US or you need to live in the US. You fail both criteria. Maybe your rejection letter only mentions the first reason,…

You seem hostile. Not sure if it's your intention, but ease up. > So did you lie about your address on the credit card application? If not, that’s how the bank knows you don’t live in the US and that’s why you were rejected. I didn't lie on anything, and frankly a bit offended you would even assume such. I travel back and forth to the US, often. My home address (one of the properties my family owns, and where I lived…

> You seem hostile

Not my intention. IMO my tone matches your first post re “The entire system is broken”.

> It's my actual physical address in the US.

Ah I wish you mentioned that. In that case I’m not sure why you’d be rejected by every bank. My understanding is that if you don’t get auto-approved based on your credit history the bank has to use its own homegrown risk assessment which is a lot more conservative. Maybe the internal tool instantly rejected the application because your IP address didn’t match your address? Try calling and asking them (not the front line CSR, but a credit analyst that can override the software):

https://www.doctorofcredit.com/credit-cards/credit-card-reco...

https://ficoforums.myfico.com/t5/Credit-Card-Applications/Ba...

Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers

#74

Post by thatfrenchguy »

distantaidenn wrote: post #39
JumpCrisscross wrote: post #36

Earlier quoted context omitted.

> Nothing, nada, zilch. All I can do now is get a secured card and hold on to that for some time -- which is what I have been doing for about a year so far I started with a blank credit folio late in life. This was not my experience. It may make sense for you to speak to your bank or to a financial advisor.

I'm afraid a lot _might_ have to do with my registered address (zip code) in the States, when I try to apply. Inner city and all that. Edit: The rejection note that I normally receive is: insufficient credit history. To me it's a catch-22 situation. It always boggles my mind when I see 20 somethings with 10s of thousands of dollars in credit card and loan debt, while I can't even get in the door. Not saying I plan on…

> I'm afraid a lot _might_ have to do with my registered address (zip code) in the States, when I try to apply. Inner city and all that

It’s not, a lot of us have had credit cards and “bad” zip codes / addresses. You just don’t have verifiable W-2/1099 income.

Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers

#75

Post by NavinF »

gnopgnip wrote: post #71
distantaidenn wrote: post #33

I have zero debt. Absolutely zero. However, I left the States soon after graduating university, and thus also have (had) no credit history there. Since I've been planning to return soon, I've been trying to build a history, so when the time comes, I can get a mortgage loan. The process of building a credit history has been enlightening and frustrating. I'm in the tech world, as most people in this forum is as well. I…

The banks don't just look at your credit score. They want you to be able to repay, and to be able to collect if you default. A regular job in the US, or 2 years as an independent contractor or self employed would qualify you for an unsecured credit card without a cosigner at most banks and credit unions. One trick if you have family that trusts you is to have them add you as an authorized user. Then their multiple ye…

> their multiple year old account history for that account will be part of your credit, bringing up the average age

Sorta. The most popular credit score (some version of FICO) ignores authorized user accounts so this doesn’t improve AAoA nor credit utilization. I guess too many people were taking advantage of this hack back in ~2012 lol.

I suspect it’s still useful for initializing a credit report so you don’t get stuck having to verify your identity/address and improves your odds with the bank’s internal risk assessment.

Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers

#76

Post by spullara »

gpapilion wrote: post #62
spullara wrote: post #32

Earlier quoted context omitted.

My guess is that they aren't profitable at all.

Credit Karma provided intuit with $475m in revenue for its Q4’22 earnings. Inuit posted a loss but I suspect credit karma was break even or slightly profitable. https://s23.q4cdn.com/935127502/files/doc_financials/2022/q4...

I guess your suspicion and my suspicion can argue about it until there is data.

Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers

#78

Post by philsnow »

cmeacham98 wrote: post #59
devoutsalsa wrote: post #56

Earlier quoted context omitted.

Do you plan to buy a car? A car loan will establish your credit history. Car lenders will lend to anyone because they can always repossess the car. If you could buy a car with cash, take out a auto loan at any interest rate. Pay off the entire balance except $1. You’ll have no balance due each month, but each payment will be recorded as having been made on time. Then pay off the last $1 in the last month. Double chec…

Your first paragraph is largely true if you're able to make a down payment (your car depreciates a ton as soon as you drive it off the lot, lenders will be much more willing to lend if amount of the loan is less than the value of the car sold _used_). The second is close to true, but you should actually leave a little over one month's payment, not $1. This SE answer explains it better than I ever could: https://money…

Do you have any idea having two new car loans improves your credit score any more than having one new car loan? OP might have enough income / savings to not be bothered at the idea of buying two new cars (they don't have to be Bentleys, people take out loans on Civics too).

My gut says that having two of the same age wouldn't be much/any better than one, but then again it's the credit industry and my intuition has bitten me in the past.

Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers

#79

Post by throwaway98797 »

spullara wrote: post #32
ck2 wrote: post #22

Can we guesstimate that fine as "days of profit" ? one month? one year?

My guess is that they aren't profitable at all.

a single credit conversion is worth $200-$400 for them, with nearly non existent marginal cost.

they do alright.

Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers

#80

Post by [deleted] »

distantaidenn wrote: post #33

I have zero debt. Absolutely zero. However, I left the States soon after graduating university, and thus also have (had) no credit history there. Since I've been planning to return soon, I've been trying to build a history, so when the time comes, I can get a mortgage loan. The process of building a credit history has been enlightening and frustrating. I'm in the tech world, as most people in this forum is as well. I…

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