The Beacon score is the name of the credit score used by the Equifax Credit Bureau. It's calculated using a complex secret formula that tells lenders whether the individual is creditworthy.
Identification
There are 3 main credit bureaus in the United States: Equifax, Experian and TransUnion. Each one uses a slightly different algorithm to calculate credit scores. Equifax calls its version of the score the Beacon score.
Features
The exact formula that Equifax uses is kept secret. However, it does include borrowing history, repayment history, total amount owed, frequency of credit applications and many other factors. All this information translates into a single 3-digit number.
Size
The Beacon score ranges from 300 to 850. The average American has a score between 670 and 699.
Prevention/Solution
Improving a Beacon score takes time. The most important thing is to pay bills on time and not to max out credit cards. Even a single missed credit card payment will reflect badly on the score.
Warning
There are companies that promise to improve your Beacon score overnight. This is impossible. The only way to improve your credit score is to replace negative credit information with positive credit information. Since negative information cannot be erased, the only way to significantly improve the score is to wait for it to expire.
0 comments:
Post a Comment