Beacon Score
The Beacon score is a numeric system of scoring credit reliability that is used by the Equifax credit reporting agency. The higher the score the better it is for the consumer.
The main areas of information considered in formulating the Beacon score are payment history, including tardy payments, missed payments and collection matters and judgments that can be discovered through public records; the level of debt carried in all credit accounts; length of credit history; the number of recent credit report requests and recent new credit accounts, and the type of credit accounts held.
Beacon scores can range from 400 to 850. Having a Beacon score below 640 can adversely influence credit potential. If the consumer finds that his or her Beacon score is lower than desired, there are steps that can be taken. The first step should be to carefully review complete and current credit reports for errors, then take the appropriate steps to resolve any resulting credit disputes.
If the low score is merited, a credit counsellor can provide educational programs and direct assistance in credit and debt management.