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What is a Beacon FICO Credit score?
Beacon score
credit scores, FICO score credit scores and Emperica score
credit scores are credit scoring systems used by the
"Big 3" Credit Bureaus.
Equifax uses the Beacon
score risk score
model, Experian uses the Fair Isaac
or FICO
risk score model, and TransUnion
uses the Empirica
score risk score
model. Many people in the financial industry simply
refer to them as FICO
scores.
In the 1980s, the Fair Isaac
Company, named after its creators, Bill Fair and Earl
Isaac, devised a mathematical model to predict the credit risk of consumers based on
the information in their credit
report. Today, the Fair / Isaac system - known today as the FICO
(sounds like "psycho") score
- is the credit scoring model most widely used by lenders.
The result is 3 credit programs at the "Big 3" Credit Bureaus:
FAIR - ISAAC at Experian (formerly TRW);
BEACON at Equifax;
EMPIRICA at Trans Union.
What is the average Beacon Fico credit score or national average
Fico beacon credit
score?
Beacon scores range from 400 - 844; while,
FICO scores range between 350 - 880.
The majority of credit score scores,
however, fall within the 600s and 700s. Higher credit
score scores indicate a lower credit risk, and lower credit
score scores indicate a higher credit risk. The average American with no late payments has a
Beacon Fico score of
approximately 720.
Credit
Score Scoring Table
| 775+ |
Preferred |
|
|
|
725-774 |
Platinum |
|
|
|
700-724 |
Gold:
Average American with no late payments |
|
|
|
680-699 |
Standard 1 |
|
|
|
640-679 |
Standard 2
(80% of Credit Limit. Some late payments or a
collection, etc.) |
|
|
|
620-639 |
Standard 3 |
Factors affecting your
credit score
The Credit Reporting Agencies use many different formulas to calculate
credit score scores, however, most credit score scores are based on the following factors:
Payment history
A record of late payments on your current and past credit accounts will lower your
score.
In general, a longer credit history is better.
Public records
Matters of public record such as bankruptcies, judgments and collection items may lower your
score.
Outstanding debt
Credit history
Owing too much will lower your score, especially if you're approaching your total credit limit.
New accounts
Opening multiple new accounts in a short period of time may lower your
score.
Accounts in Use
The presence of too many open accounts can lower your
score, whether you're using the accounts or not.
Enquiries
Whenever someone else gets your credit report - a lender, landlord, or insurer, for example
- an Enquiry is recorded on your credit
report. A large number of recent
enquiries may lower your score.
Why you need all 3 credit
scores
Your credit data changes at the credit reporting
agencies from month to month. Therefore, so does your credit score based on your credit report
data. Here are four reasons why:
Each of your credit reports may be different
Credit bureaus don't share their data with each other. Each of the
3
credit bureaus may have different data - therefore, you won't know
unless you check.
Each of your FICO credit
score scores may be different
If your credit reports
contain different information, you may have three different FICO
scores. These are the important scores that lenders use to judge you and your risk as a borrower.
Therefore, it's important you know each of your
FICO
credit score scores.
Lenders may look at all three of your FICO scores
Lenders, especially mortgage lenders, may look at all three of your FICO scores to determine whether to give you a loan or grant credit
- for everything from a car loan to a home loan to a credit card to a cell phone. Don't be surprised at the last minute when applying for credit.
You need to protect against ID Theft
The
first sign of a stolen identify may come from the information in each of your credit reports, including
credit you didn't
open and home addresses that aren't yours. You need to
look
regularly at all three credit reports and FICO scores to rest assured that your credit and your identity are safe.
Want to know your Credit Score?
The following
page explains
how to get your credit score and obtain a copy of your
Free Annual Credit Report.
Credit Scoring Tips
:
1) Obtain Your Credit FICO Score
2) Make any credit corrections with the proper documentation
3) Pay off small balances on high limit credit cards
4) Consolidate credit card bills onto fewer credit cards
5) Cancel certain credit cards and shift the balances onto fewer cards. (Shifting small balances to fewer cards raises the ratio of your unpaid balances).
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