BEACON at Equifax;

EMPIRICA at Trans Union.

Beacon and Empirica, both subscribe to the Fair Isaac's FICO model of scoring and then they integrate their own version of a person's FICO score. On the other hand, when borrowers look for a mortgage loan, lenders use what's called a "tri-merge". A tri-merge verifies all data held by the 3 Bureau and merges it into one report. 

The main problem of a credit grade is that its based on your credit to debt ratio (80% or more borrowed against your maximum credit limit). Beacon scores range from 400 - 844; while, FICO scores range between 350 - 880. Lenders determine the investment quality of a loan by the credit grade system in the following order - A, B, C or D. "A" represents the highest quality loan, and "D" paper is the highest risk loan for the investor. 

For example, if your credit score is 680 or more, you fall in the 'A' paper category; however, not all lenders rate credit the same way. So the question is: how does your credit affect the interest rate a lender will charge you?

The answer depends on your level of consistency in making good payments in your credit history, along with your debt ratio (80% or more borrowed against your maximum credit limit). If both are good, the loan is assigned an 'A' grade; and, qualifies for the best interest rate. If even one of the factors is not up to par, the quality of the loan is downgraded to 'A-" or 'B' paper.

Consequently, the interest rate goes up as the perceived risk factor increases. There is a higher risk for a lender making a B, C or D paper loan because there is a higher risk for a defaulted loan. Therefore, the lender is compensated for the higher risk by charging the borrower a higher interest rate.

When lenders review your credit score, it's reviewed by an underwriter. The underwriter and credit scores are assessed and rated by the following criteria:


Lifestyle History

How long you've lived at your residence

Do you own or rent (Owning property - earns extra credit)

How long you've been employed at your current job 

Education level (College Education - earns extra credit)

How much money earned and how credit has been used


Payment history

Public record and collection items

Severity, recent and frequency of delinquencies noted in trade line section


Outstanding debt

Credit history

Number of balances recently reported

Average balance across all trade lines 

Relationship between total balances and total credit limits on revolving trade lines (80% or more borrowed against your maximum credit limit).


Pursuit of new credit

Number of inquiries and new account openings in the last year

Amount of time since most recent inquiry 


Types of credit in use 

Number of trade lines reported for each type Bankcard

Department store cards

Personal finance company references

Travel and entertainment cards 

Installment loans

Quick Improve Your 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).