by 
The Curious Bag
-
Credit scores and credit reports reflect a complex mathematical formula that credit-rating agencies use to calculate the risk of lending money to you. The beacon score on a credit report is just one of several names for your credit rating.
Identification
A "beacon score" is just the official name for the FICO score that appears on the credit reports for Equifax, one of the three major credit-reporting agencies, according to Privacy Rights.
Considerations
Experian uses an "Experian score," and TransUnion uses an "Empirica" score. All three of these are used interchangeably, Investopedia says.
Effects
The beacon score on an Equifax report determines how much interest you pay on a loan, Privacy Rights reports. Generally, beacon scores above 720 will garner the lowest interest rates.
Features
The major factors that determine a beacon score are debt obligations, late payments, credit history, type of credit and the number of loan applications, Investopedia says.
Tips
Avoiding credit does not increase a beacon score, Privacy Rights reports. Always pay your balances due on time for the credit you use. Never max out a credit card; the percentage of credit available and the amount you use also factors into a credit score. In general, multiple credit applications lower a score.
Source:
PrivacyRights.org; How will I know the score I purchase through a credit bureau is my FICO score?
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC