Many lenders advertise that they offer “Credit Builder loans”. This is just a blatantly false advertisement. The sole purpose is to get you to open a credit card or take out a loan with them. Don't do it. I'll explain why.

Credit Karma has been fined $3 Million falsely for claiming they were pre-approved for credit cards, when in fact they were not. Unfortunately, this is a level of deception is based on the unreliable credit information Credit Karma provides consumers. There were two problems for Credit Karma’s and its clients.

Many realtors and brokers tell their clients to get their “Free” credit scores at Credit Karma to know their credit qualifications. The problem is, what is provided to them from the Credit Karma Credit Scores is never reliable.

Credit Karma tells everyone to get their free Credit Karma "Vantage" credit scores. You think that is good. Actually, it is not. All mortgage lenders require Classic FICO® credit scores for their loan approvals, which also determine your interest rates and loan fees. Vantage Scores do not give the same precise scores mortgage lenders require from the Classic FICO Scores. That is where the problem with Credit Karma starts.

There are many credit score models available to consumers that provide different credit assessments (or numbers) based on the same credit information. How does that happen?