Beacon Credit Score – What is It?

A common misconception among consumers is the idea that they have a “credit score.” The truth is, consumers have three scores. A Beacon credit score is just one of those scores. It is the rating marketed by Equifax. Trans Union, and Experian market their scores under different names but the underlying process by which the scores are calculated is about the same.

However, businesses most likely will think of a myFICO score or a VantageScore or Plus Score. Typically, even though consumers contact a credit reporting agency to secure their credit report and accompanying score, the grade is most likely computed by one of the aforementioned credit score agencies.

For instance, Experian announced recently on its website that “As you may be aware, Experian® has opted to discontinue its relationship with myFICO effective February 14, 2009. This change by no means eliminates your ability to obtain your credit score and assess your creditworthiness.” It appears that Experian has opted to compute and compile its own credit ratings for consumers as Experian will continue to use myFICO for its business clients.

Usually, when a person speaks of his/her rating, such person fails to acknowledge that what is meant is one of three credit numbers since seldom will one’s credit score be the same at all three bureaus. That is why it is a good idea for consumers to obtain all three scores and then take the average of these as his/her credit score.

A consumer rarely knows which of the credit bureaus a particular creditor will use and some creditors might get data from more than a single credit reporting agency. That is why it is so important for potential borrowers to know that a Beacon rating or score is just one of three credit to which attention needs to be paid.