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The Curious Bag
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A Beacon score is another name for your credit score calculated by the Equifax Credit Bureau. The credit bureau uses an algorithm to summarize your credit history into on number.
Factors
Your credit score takes into consideration your payment history, how much you owe, how long you've used credit, how much new credit you've applied for and the different types of credit you use. The accounts the the scoring model looks at include all of your trade lines such as credit cards, installment loans, mortgages, car loans and student loans.
Scoring
The Beacon score will generate a number between 300 and 850, with higher scores representing a lower risk of default.
Significance
Most lenders request your credit score as part of the process to determine whether to issue you a loan and, if you receive approval, what interest rate to charge.
What is a good score?
According to Bankrate, if you have a credit score over 760, you will likely qualify for the lowest interest rates. If you fall below 620, you will be considered a subprime borrower, meaning you will pay a higher interest rate, if you are approved.
Considerations
Your Beacon score may be different from your credit score calculated by other credit bureaus because each credit bureau may have slightly different information about your credit history.
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