Different bureaus have and use different names for their scores. In this case, Beacon credit score is the Equifax version of the FICO credit score. The auto beacon credit score is generated through a complex formula, which combines different aspects of the credit report content. Among other things, late payments, current debts, types of credit, credit limits and the period of credit use determine the beacon credit score given. The beacon credit score scale range between 280-850. The higher the value, the higher the credit rating and credit worthiness.
The beacon credit score is most of the time the same as or almost as the FICO standard credit score. This is because the algorithm combination used to determine the beacon 5.0 credit score is almost as that used by FICO. The beacon credit chart shows how the credit scores are interpreted.
Beacon score chart
Credit Score Range Interpretation:
- 800-850 Excellent
- 750-799 Very good
- 700-749 Good
- 650-699 Fair
- 600-649 Poor
- 280-599 Very bad
From the chart above, credit scores of between 750 - 850 are regarded as the best credit scores to have as they attract the lowest possible interest rates and best credit terms in the market, actually what everyone desires. Credit scores of 650-749 make you eligible for most loans with considerably good rates. They ensure you have access and get approved for most loan and credit facilities.
Beacon credit scores of between 280-649 signify a bad financial state and you can only get approved for secured loans and credit facilities, with very high interest rates and harsh credit terms. The beacon 5.0 credit chart is almost the same as the FICO credit chart, with the only notable difference being that, FICO has its lowest credit score at 300, while the beacon has its lowest score at 280. To be on the safe side at all times, ensure you have and maintain a credit score of between 700-749, it is regarded as a good score.
Beacon score ratings
It is also important to know and understand that, different factors in the algorithm carry different weight in determining your credit score. Of the total, 35% of your credit score is determined by your account credit and bill payment history. This is the sole factor that accounts for the largest part of your credit score. Therefore, timely bill payments, full payments and non existence of payment defaults will largely impact your credit score positively.
Account credit balances make up about 30% of your credit score. A ratio of the amounts of credit owed to different credit providers to the initial credit amount and limits, determines how okay your balances are. The remaining 35% of the credit score is determined by factors such as, length of credit, additional credit and the types of credit facilities used.
How to get your score?
Equifax provides its customers with a free beacon credit report annually. However, Equifax acknowledges that need for a credit report may arise at irregular times and that is why you are allowed to request and order for an additional beacon credit report for $15.95 only.
Being the best in terms of customer service, Equifax allows customers to dispute and repair their beacon credit reports very easily. Through the online portal and active phone lines, customers are able to correct and learn how to repair their credit reports. Adding icing to the cake, Equifax provides customers with their Credit Simulator service, which shows the effect your future actions, will have on your beacon score, allowing customers know how to improve their credit scores and make informed financial decisions.
Equifax has been using the beacon score until when FICO created the NextGen FICO scores, which made Equifax change from using the beacon credit score to the Pinnacle credit score. Regardless, the beacon credit score remains the fundamental backbone of Equifax’s credit score.