Beacon Score and Credit Report

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, collection matters and judgments which is discovered through public records; and 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.

This score can range from 400 to 850 but if you have Beacon score which is below 640 then it can adversely influence credit potential. If you find that your Beacon score is lower than desired, then take these steps. First step you should take that you should 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 counselor can provide educational programs and direct assistance in credit and debt management.

This score report is based on all of your credit-related information, found within your credit report - not just the negative information. This report is calculated on following information:

1. Payment history

2. Public record and collection items

3. Severity , recentness and frequency of delinquencies noted in trade line section

4. Outstanding debt

5. Number of balances recently reported

6. Average balance across all trades

7. Relationship between total balances and total credit limits on revolving trade lines

8. Number of Credit History

9. Number of inquiries and new account openings in the last year

10. Travel and Entertainment cards

11. Department store cards

12. Personal Finance company references

Lenders use these score report determine if your credit rating places you as a suitable lending risk. This score report is the popular one and brought out by Equifax the big credit reporting bureaus. As many lenders make use of this credit report in deciding whether or not to grant credit to an applicant.