Amazon & Credit: Everything You Need to Know About Credit Karma
Starting an Amazon FBA business can be a super awesome way to start making passive income. Amazon is a huge online marketplace that, surprisingly enough, still has way more than enough room for more sellers. As well as more products, and more competition. The cool thing is that the time that it requires is not as much as a typical nine-to-five job. But it can make enough profit that you do not have to work another job if you go about it correctly. Amazon also offers loan options to help kickstart your Amazon FBA business. Nine University
has made a video
about the efficacy of Credit Karma and some good information on the subject below.
What is Credit Karma?
As you may already know, Credit Karma is a free app that you can download onto your cell phone that keeps you updated about your credit score. This can be handy in giving you an idea about where your credit stands and how you can improve it. This is important so that you do not have to keep applying for loans and having ‘hard-checks’ pulled to see if you even qualify. Credit Karma can also keep you informed about your accounts so that you will know if something is past due etc.
What Does Credit Karma Have to do with Amazon FBA?
A lot of people who decide to get a loan through Amazon like to use Credit Karma to check their credit scores. It is important to know where you stand before you have your lender pull what they call a ‘hard-check’. A hard credit check will slightly hurt your credit temporarily and too many hard credit checks in a short amount of time can temporarily hurt your credit considerably.
Is Credit Karma Accurate?
This question is asked often and is a bit more complicated than it seems. Most lenders use a formula called Fico to check your credit health and history and make your ‘score’. This is standard procedure and involves the major credit institutions. Since Credit Karma is free, it only checks your Equifax and TransUnion scores to factor into your overall scores. Since the equation is different, it often results in a score that can be a few points or even fifty to a hundred points different from your Fico score. It is not an inaccurate score, it is just not as comprehensive.
Is Credit Karma Still Good to Use?
Credit Karma is a great way to monitor your credit score. As well as ensure that you are keeping up with your payments and doing everything that you can to build your credit. Just because it is a free app that does not use a Fico equation does not mean that it is not a valuable tool to use when you are trying to build your credit.
Is it a Good Idea to Try for an Amazon Loan?
This depends. If you have money to invest and to buy your products, advertisements, etc. Then you should set a budget and make it happen. If, however, you do not have the available funds up-front, you should consider weighing your options and taking out a loan. This, of course, should be a point of sincere consideration. It is paramount that you take care to determine if you can pay back your loan completely in a timely fashion.
Project Nine University
If you need more information about the financial aspects of becoming an Amazon FBA seller
, click here to look at Project Nine University’s
website. They are a team of experienced professionals that are excited to help your Amazon Business succeed.