What your Credit Karma Approval Odds really mean (2024)

Editorial Note: IntuitCredit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Advertiser Disclosure

Offers that appear on this site are from third-party advertisers from which Credit Karma typically receives compensation. Except for mortgage loan offers, this compensation is one of several factors that may impact how and where offers appear on Credit Karma (including, for example, the order in which they appear).

Other factors may include: your credit profile and what products we think you want. It is this compensation that enables Credit Karma to provide you with services like free access to your credit scores and free monitoring of your credit and financial accounts. Credit Karma strives to provide a wide array of offers for our members, but our offers do not represent all financial services, companies or products.

If you’re getting ready to apply for a new credit card, you might be concerned about whether you’ll actually be approved.

Nobody likes feeling rejected, but there’s more to it than that.

Applying for a credit card usually results in the issuer making a hard inquiry on your credit, which could lower your credit scores by a few points and stay on your credit reports for up to two years.

You don’t want too many hard inquiries clogging up your credit reports, so it’s important to understand your chances of being approved for a particular card. That’s where Credit Karma Approval Odds can help.

Approval Odds compares your credit profile to the profiles of already-approved applicants or to lender criteria.Explore Cards Now

  • What are Credit Karma Approval Odds?
  • Approval Odds are guidelines – not guarantees
  • Why ‘outstanding,’ ‘excellent,’ or ‘very good’ Approval Odds don’t guarantee approval
  • What to do if you aren’t approved

What are Credit Karma Approval Odds?

When you’re logged into theCredit Karma appand searching for a new credit card, you might notice a star with a check mark directly below each card image. Next to the star, you’ll see your Approval Odds.

What your Credit Karma Approval Odds really mean (1)Image: Screen-Shot-2021-11-19-at-9.03.32-AM

While the Approval Odds in the example are “outstanding,” other possibilities you might see include “excellent,” very good,” “good,” “fair” and “poor.” But what, exactly, do they mean?

Approval Odds serve as guidelines regarding the likelihood you’ll be approved for a specific credit card. Everyone’s credit situation is different, so your odds might be different from those of other Credit Karma members.

Click on the Approval Odds info button, and you’ll see a pop-up message that explains how Credit Karma determines your unique Approval Odds.

Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for this product, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.

If you’re looking for a new credit card, these Approval Odds can certainly help you when you’re evaluating which one is the best fit for you.

Does getting rejected for a credit card hurt my credit?

When you apply for a credit card, the issuer usually checks your credit. This type of credit report inquiry is called a hard inquiry. Hard inquiries generally occur when a financial institution, such as a lender or credit card issuer, checks your credit after you’ve applied for any type of credit, such as a credit card, mortgage or auto loan.

Hard inquiries may have a negative impact on your credit scores. But there’s good news: Getting rejected or approved for a card has no impact on your credit scores.

Approval Odds are guidelines — not guarantees

Even if your Approval Odds are “outstanding,” “excellent” or “very good,” remember that the issuer — not Credit Karma — always has the final say in whether you’ll actually be approved.

Credit Karma compares your credit profile to the credit profiles of other members who were approved for the card or to lender criteria to assess the likelihood that you’ll be approved.

But keep in mind that though this determination is based on member data and lender criteria, it’snota guarantee that you’ll be approved. Everyone’s credit situation is unique, so there’s simply no way to make a perfect comparison between our members’ profiles.

Some things a bank may take into account when deciding whether to approve your application include …

  • Your percentage of on-time payments
  • Credit card utilization
  • Derogatory marks
  • Average age of your open credit accounts
  • Your total number of accounts
  • Total hard credit inquiries
  • Number of 30-day delinquencies

Approval Odds compares your credit profile to the profiles of already-approved applicants or to lender criteria.Explore Cards Now

Why outstanding,’ ‘excellent,’ or very good Approval Odds don’t guarantee approval

Credit Karma is all about empowering people with accurate, transparent information — it’s baked into our mission.

Though Approval Odds use statistical analysis to determine the likelihood of approval, it’s important to understand some of the other factors at play.

First, there are several different credit score models out there. Credit Karma doesn’t actually calculate your credit score — the scores and credit report information you see on our site come from TransUnion and Equifax, two of the three major credit bureaus.

Credit Karma provides VantageScore 3.0 credit scores that are calculated by TransUnion and Equifax. But a credit card company will likely use a different scoring model altogether.

There can be variation among credit scoring models and even among credit bureaus. Many different factors could be considered when calculating a score, and each model may weigh credit factors differently.

But though your scores may vary, they’re all based on information in your credit reports. So focusing on what’s in your reports could help you build your credit overall.

These scores can help you figure out where you stand, but it’s ultimately the credit card company that will look at all your risk factors and determine if you’re a qualified candidate for its product.

What to do if you aren’t approved

If your application for a new credit card gets denied, don’t panic. Though the hard inquiry necessary for the application may affect your credit scores, getting denied doesn’t further hurt them. The impact on your credit may be small and can improve over time.

Secondly, check your credit reports to make sure all the information is correct. If not, you’ll want to dispute any errors.

On top of that, make sure your credit utilization — the amount of available credit you use — is below 30%. You’ll also want to verify your payments are on-time and paid in full to keep your credit in good shape.

If you really think the credit card company made a mistake in rejecting you, consider calling the company’s reconsideration line to make your case. There’s no guarantee this will work, but it can’t hurt to try.

Approval Odds compares your credit profile to the profiles of already-approved applicants or to lender criteria.Explore Cards Now

Bottom line

While by no means the final say, Credit Karma Approval Odds should be used as a guideline for the types of credit cards that may be a good fit for you.

Ultimately, your best bet is to be a responsible credit user by making on-time payments and keeping your balances low. Building your credit is one of the best ways to increase the approval odds in your favor.

About the author: Melanie Lockert is a freelance writer and editor currently living in Portland, Oregon. She is passionate about education, financial literacy and empowering people to take control of their finances. Her work has been f… Read more.

What your Credit Karma Approval Odds really mean (2024)

FAQs

What your Credit Karma Approval Odds really mean? ›

In a Nutshell. Your Credit Karma Approval Odds can help you find a card that matches your credit profile, but they don't guarantee approval. Ultimately, the credit card company has the final say.

Is it easier to get approved through Credit Karma? ›

Credit Karma compares your credit profile to the credit profiles of other members who were approved for the card to assess the likelihood that you'll be approved too. Though this determination is based on member data, it's not a guarantee that you'll be approved.

What do excellent approval odds mean? ›

Excellent chance of approval. You are highly likely to qualify for this credit card. In fact, your high approval odds may also grant you access to “Special Offers” — meaning you may be preapproved for this card and possibly an elevated welcome offer if you apply through Bankrate.

How accurate is Credit Karma credit rating? ›

The credit scores and credit reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. They should accurately reflect your credit information as reported by those bureaus — but they may not match other reports and scores out there.

What is 90 chance of approval for a credit card? ›

90% – 99% chance of approval

This means that you're very likely to be approved for a loan or credit card based on what you've told us. Usually, the lender will need to do a few final checks on their side to fully approve your application. Very likely to be approved for this offer if you apply.

Can I trust Credit Karma approval odds? ›

Approval Odds are guidelines — not guarantees

Even if your Approval Odds are “outstanding,” “excellent” or “very good,” remember that the issuer — not Credit Karma — always has the final say in whether you'll actually be approved.

How accurate is Credit Karma guaranteed approval? ›

It is not a guarantee of approval for any credit card offer. Only the lending partner can make the credit approval.

How can I increase my approval odds? ›

How to boost your personal loan approval odds
  1. Check the accuracy of your credit report. ...
  2. Improve your credit score. ...
  3. Prequalify before formally applying. ...
  4. Work on reducing your debt. ...
  5. Find ways to increase your income. ...
  6. Don't apply for too much money. ...
  7. Adding a cosigner or a co-borrower.
Aug 30, 2023

What score is excellent on Credit Karma? ›

800–855

Can you get a loan with fair approval odds? ›

Fair credit, as defined by FICO, is a credit score between 580 and 669. While you'll be able to score a loan with a score below 670, you shouldn't expect the most favorable terms. High loan limits and low interest rates are typically reserved for those with the highest credit scores.

How far off is Credit Karma from your actual credit score? ›

But, just how accurate are Credit Karma scores? They may differ by 20 to 25 points, and in some cases even more. When Credit Karma users see their credit score details, they are viewing a VantageScore, not the FICO score that the majority of lenders use.

Why is my FICO score so much higher than Credit Karma? ›

This is because Credit Karma makes use of another credit scoring model compared to many lenders and possibly does not have access to all the data required to calculate your credit score.

Should I trust Credit Karma or FICO? ›

Although VantageScore's system is accurate, it's not the industry standard. Credit Karma works fine for the average consumer, but the companies that will approve or deny your application are more likely to look at your FICO Score.

What's the hardest card to get approved for? ›

Hardest Credit Card to Get Overall

A rating of 5 is the best a card can receive. Why it's one of the hardest credit cards to get: The hardest credit card to get is the American Express Centurion Card. Known simply as the “Black Card,” you need an invitation to get Amex Centurion.

What is the 5/24 rule? ›

Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

Which card is easiest to get approved for? ›

Easiest credit cards to get approved for
  • Best for unsecured card: Capital One Platinum Credit Card.
  • Best for students: Discover it® Student Cash Back.
  • Best for no annual fee: Citi Double Cash® Card.
  • Best student dining card: Capital One SavorOne Student Cash Rewards Credit Card.

Is your credit score usually higher than what Credit Karma says? ›

Some lenders report to all three major credit bureaus, but others report to only one or two. Because of this difference in reporting, each of the three credit bureaus may have slightly different credit report information for you and you may see different scores as a result.

Does Credit Karma do a hard pull on credit? ›

Credit Karma allows you to check your credit report and score for free, without affecting your score. The service doesn't hurt your credit score because it counts as a self-initiated inquiry, which is a soft credit inquiry.

Is it worth it to use Credit Karma? ›

Verdict: There's No Reason Not to Sign Up, But It's Not the Only Service You Need. There's really no reason not to sign up for Credit Karma. It's free and you get detailed information about your credit.

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Rueben Jacobs

Last Updated:

Views: 6539

Rating: 4.7 / 5 (57 voted)

Reviews: 80% of readers found this page helpful

Author information

Name: Rueben Jacobs

Birthday: 1999-03-14

Address: 951 Caterina Walk, Schambergerside, CA 67667-0896

Phone: +6881806848632

Job: Internal Education Planner

Hobby: Candle making, Cabaret, Poi, Gambling, Rock climbing, Wood carving, Computer programming

Introduction: My name is Rueben Jacobs, I am a cooperative, beautiful, kind, comfortable, glamorous, open, magnificent person who loves writing and wants to share my knowledge and understanding with you.