What is a Beacon Score
Debt is something that affects millions of Americans, and it is likely that at one time or another you will be directly affected by debt in some way. However, debt can also be managed properly and it is important that Americans learn about their options and available tools, like college budget calculators, when it comes to managing their debt. One important financial aspect to learn about when dealing with debt is going to be your credit score. Credit scores represent a number that lenders will use in order to determine whether or not to provide you with a loan. If you are deemed credit worthy, you will have a much easier time getting loans and dealing with debt. In addition, your credit score may be used when you are purchasing things like insurance or applying for a job.
Understanding Beacon Scores
There are three basic types of credit scores and each is going to be generated by a different financial organization. The criteria and algorithms that are used to generate these scores are going to vary, and it is important that you understand and check each of your credit scores. A Beacon score is one that is one that is generated by the Equifax Credit Bureau, and it is one of the three that lenders will consider when checking your overall credit score.
Many people that are trying to understand Beacon scores will want to know how they are generated. The Equifax Credit Bureau is not required to divulge how their scores are generated, but they have provided consumers with some basic information that outlines the information that their algorithms use to generate scores. By understanding a bit about the factors that will come into play when creating your Beacon score, you can more effectively manage and control your score.
Criteria Used in Beacon Scores
In order to generate a Beacon score, the Equifax Credit Bureau is going to look primarily at your loan and credit history. They will use loan payment history, as well as information about your current debts in order to come up with a score. In addition, they will most likely consider credit applications and the current lines of credit that you have open while generating your score. If you want to maintain a good Beacon score, you will want to stay current on all of your debt, and you will want to limit the number of credit applications that you have made.
Because your Beacon credit score is very important, there are some steps that you will want to take if you find that your score is lower than where you would like it to be. People with poor credit are first going to want to make sure to make any late payments and clear up any problems that they may have with creditors and lenders. Next, if you feel as though your debt has spun out of your control, you may want to speak with a credit counselor or debt management specialist. These professionals will be able to help you get back on track and put your Beacon score back at an acceptable level.
Asking the question what is a beacon score may be important to your financial future and credit worthiness. It is important to note that people who are using NextGen FICO scores will not see a Beacon score, but the score used by the Equifax Credit Bureau will instead be called a Pinnacle score. If you have further questions about Beacon scores, you may want to directly contact the Equifax Credit Bureau or access their website.
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