How To Understand A Beacon Score

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An Equifax FICO Risk Score, previously called a Beacon or Pinnacle score, may be a measure of creditworthiness. Like other sorts of credit scores, it’s the merchandise of an algorithm that analyzes your credit history. And also, like other sorts of credit score, having a coffee Equifax score can prevent you from qualifying for major purchases or may leave you with higher interest payments. Luckily, the FICO Risk Score itself is straightforward to know and, with some effort, also relatively easy to enhance.

Table of Contents

What Your Credit Score Means

Your credit score represents the likelihood that you’re going to repay a loan supported your history with credit accounts. Credit scoring calculations use your credit history to get a three-digit score supported in five key factors: your payment history, amount of debt, length of credit history, sorts of credit, and up-to-date applications for credit.

High credit scores are better and represent a history of doing positive things, like paying bills on time and using available credit responsibly, and avoiding the negatives, like late payments quite 30 days overdue, accounts getting to collections, and bankruptcy. On the opposite hand, borrowers with lower scores typically have had trouble making payments within the past and carry more risk for lenders, leading to higher interest rates, if they get approved.

Getting Your Equifax Score

Get your score directly from Equifax. You’ll order your credit report and score directly from Equifax’s website for $15.95. This score is going to be Equifax’s score, supported their proprietary scoring model. Equifax also offers an entire score report that contains scores from all three major credit reporting agencies (Equifax, TransUnion, and Experian).

Make certain that you simply know which score you’re paying for. There’s also a more generalized FICO score available from Equifax that does not use their proprietary scoring model. It’s available for $19.95.

Evaluating Your Equifax Score

Know where you fall on the score range. Equifax issues a credit score supported a variety from 280 to 850. The lower the score, the lower your creditworthiness. While it’s hard to definitely say what a “good” credit score is, most credit scores fall within the 600’s and 700’s. A score above 780 will put you within the top 20% of borrowers, whereas a score below 619 will put you within the bottom 20%.

The entire score breakdown by percentage of the overall population is as follows:

  • 20% are above 780
  • 20% are within the range of 745-780
  • 20% are within the range of 690-745
  • 20% are within the range of 620-690
  • 20% are below 619

Know what you’ll to try to to to vary your score

Equifax offers a service called Score Simulator that permits you to see what effect your future actions may wear your credit score. It also offers a suggested best action to enhance your credit score. Note, however, that this service is merely available to Equifax members who pay a monthly fee.

Tips

  • If you’re denied credit supported your Equifax FICO Risk Score, you’ve got the right to urge a notice that tells you the precise reasons why you were denied. It is, however, your responsibility to form such requests within 60 days of your denial.
How To Understand A Beacon Score

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