Beacon Score

What is a Beacon Score?

Definition

The Beacon Score is an Equifax Credit Bureau credit score technique used by lenders to test individual borrowers' creditworthiness. Through the use of a complex algorithm, the Beacon Credit Scores are analyzed and calculated, thereby, giving lenders the necessary information on borrowers’ credit history and individual ability to pay back the loan they are applying for.

Other Information

The Beacon Score is a type of credit scoring employed by Equifax to provide lenders with accurate credit scores when making findings on a borrower’s credit history. There are no general rules binding credit scores as they differ by the different credit bureaus. Depending on the credit bureau and credit quality of the borrowers the score varies between 150 to 930. The more quality a borrower’s credit score is the higher the credit score is. Asides the credit score, lenders can also request other necessary information on a borrower’s credit report to determine creditworthiness when doing a hard credit inquiry. Such as the duration of time an account has been open, types of credit, current debts, and late payments.

The Equifax Credit Bureau also makes use of the Pinnacle Credit Score alongside the Beacon Credit Score. Equifax provides its lenders with different credit scoring options under these two categories such as the Beacon 5.0 Auto, Beacon 5.0 Bank Card, Beacon 5.0 Base, Beacon 09 Auto, Beacon 09 Bank Card, Beacon 09 Base, Beacon 09 Mortgage, Pinnacle 1, and Pinnacle 2.

Lenders that partner with Equifax receive full disclosure on the procedure of how each credit score is calculated and how they differ in variations.