Beacon Credit Reporting

Your credit score is based upon the data contained within your credit report. Lenders and other creditors often report your credit information to credit bureaus. Consumers have three different FICO scores, one from each bureau: Equifax, TransUnion and Experian. It's important to understand how credit reporting affects your BEACON credit score from Equifax.

Identification

In 1989, FICO and Equifax introduced the FICO credit score under the name BEACON, a trademark of Equifax. The BEACON score is simply the brand name for your Equifax FICO score, and nowadays most people refer to it as an Equifax FICO score instead of a BEACON score. The score is based upon the data contained in your Equifax credit report. The BEACON score does not include data from other bureaus. Each bureau uses its own proprietary scoring model to determine your credit score.

Significance

Your FICO score can range from 300 to 850. The higher your FICO score, the better your credit is. According to MyFICO.com, 35 percent of that score is based upon how promptly you pay your bills, 30 percent is the amount of debt that you have, 15 percent is the length of your credit history, 10 percent is the types of credit that you have and the final 10 percent is the level of new credit that you've applied for recently.

Consideration

Since your FICO score is based upon data in your credit report, knowing what's in your credit report is important. Under the Fair and Accurate Credit Transactions Act (FACTA), once a year you can order one free copy of your credit report from the Annual Credit Report website. There you can request just your Equifax report or one from each bureau, including TransUnion and Experian. The website gives you a phone number and address if you'd rather order the report by phone or mail instead.

Prevention/Solution

Errors on your credit report can negatively impact your credit score. According to Bankrate, one way to improve your FICO score is to correct any mistakes on it. The Fair Credit Reporting Act (FCRA) gives you the right to dispute mistakes in your report. You can file a dispute online at the credit bureau's website, by mail or phone. The bureau then has up to 30 days to investigate the dispute and correct the error or inaccuracy.