Would you like to increase your beacon credit score as fast as possible? But before we jump into the details, it it important to note that BEACON and FICO can be used interchangeably. A FICO score is simply another name for credit score. But, more often than not, the FICO score is called the beacon score.
It turns out that the Equifax (arguably the largest consumer credit reporting agency) is the only agency with the right to market the FICO credit scoring algorithm invented by the Fair Isaac Corporation. In other words, Equifax distinguishes its credit-scoring model by using the name of beacon.
Case in point…take a quick look at the different scoring models credit reporting agencies use:
1. NextGen – A broad-based next generation credit bureau risk score.
2. Beacon – The scoring model used by Equifax.
3. EMPIRICA – The scoring model used by TransUnion
4. Fair Isaac Risk Model – The scoring model used by Experian
5. Industry Option SM – Scores used by major credit reporting agencies in the bankcard, auto loan, installment loan, and personal finance loan industry.
As you might have guessed, every agency will undoubtedly provide you with a different score. So, bite the bullet and order your credit report from the three major credit-reporting agencies to see what your average is.
With that being said, your beacon credit score is going to be paired with up to four reasons for your credit score.
The Fair Isaac Corporation holds the copyrights to the complete listing of reason codes and reason statements that are provided to creditors and prohibits the recording, retransmission, or use of its listing for commercial gain.
Here’s a list of the most frequently used codes and statements.
· Amount you owe on your accounts: 01
· Your level of accounts that are delinquent: 02
· You have too many accounts with balances: 05
· Your proportion of balances to credit limits on your revolving accounts (credit card) is too high: 10
· Your delinquent accounts are too recent or unknown: 12
· The amount of time your accounts have been established: 14
· The Number of accounts with outstanding balances: 18
· You have serious delinquencies and public records or collections filed: 38
· You have serious delinquencies: 39
· You have a derogatory public records or collections filed: 40
Quite honestly, you can use these reason codes and statements to plot your course of action in order to increase your beacon credit score.
Identify the problems with your credit rating. You are in a position to correct those problems.
