beacon score vs fico score – Which one is best?

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Today, we are living in tough times. The entire global economy is on a downswing and we must do what we can to save our money as much and as early as possible even if it wants us to “force” ourselves to do it. Yes, we can’t change the big scenario alone, but we at least can take hold of our own circumstances and make changes now to help ensure the security of our household. Every day people work hard to earn enough money to buy the products that they want and need. However, sometimes after all the hard work people still don’t have enough to purchase their ideal products or their ideal lifestyle. But lending agencies are always there to assist people.

They lend money to those people who seem to be good borrowers. To analyze that, they seek help from credit bureaus which provide the necessary information to let them conclude the financial position and history of any person that is seeking to borrow money. As consumers, we purchase items in our everyday lives to satisfy a want or need. Larger investments like houses and cars may require the use of credit. And the better your credit, the more options you have, so it’s always good to learn about credit and to learn more about fico scores. How often is a beacon score or fico score updated?

When it comes to building your credit, it is crucial that we’re paying off our credit card bills in a timely manner. That is to reduce debt and late payments. We want to be able to check our FICO score periodically to see what changes were made or where we can improve. So the question is what is the difference between a beacon score vs fico score and how often is fico score updated.

What to look out for?

The many sorts of accounts you have and how you utilize them to account for 15% of your overall Beacon score, which is a good thing. When it comes to your credit report, creditors like to see a diverse range of account types, ranging from revolving accounts such as credit cards to installment accounts such as student and home loans. This behavior receives only 10% of your FICO score’s total attention.

What Is Your FICO Score, And How Is It Calculated?

A FICO score consists of three digits that summarize your entire credit report. It can be as low as 300 and as high as 850. There are four attributes when determining your FICO score.

  • The duration of your credit, 
  • The amount of credit, 
  • How much available credit you have, 
  • and payments made in a timely manner,

This helps the lender determine whether a borrower is capable of repaying a loan. Your FICO score is typically updated every forty-five days and is calculated from five categories:

  • The amount owed, 
  • Credit history length, 
  • Payment history, 
  • Any additional credit, 
  • Or a mixture of credit. 

This signifies the different credit accounts you have.

What Is Experian And What Are Their Benefits?

Experian is one of the largest and fastest credit bureaus in the U.S. that helps build your credit. Many consumers, as well as businesses, have used their services over the decades. Moreover, Experian helps you stay up to date with free, unlimited access and organizes your credit report in various sections. Also, their services monitor your credit. And send notifications about any major changes made to your report, as well as possible signs of identity theft. In addition, Experian offers the “boost” feature which allows you to add your utility bills and use them to boost your credit, so what you are waiting for, check out and get a free credit report, credit monitoring.

Types of the fico score 

Most newest Versions 

FICO® Score 10

FICO® Auto Score 10

FICO® Bankcard Score 10

FICO® Score 10T

What Is Your Beacon Score, And How Is It Calculated?

It is a type of credit score used by one of the major credit bureaus. Beacon is really just a brand name for fico developed by EQUIFAX.  The higher the score the more the credit. The consumer with a high score is indicating a high probability that any loans taken out will be repaid most probably in a timely fashion. Lower scores suggest that the person is a credit risk and may not repay a loan. Every agency you’re borrowing money from has access to this credit score. Every time you make a payment on time, it is noted on your account and if you pay late, that is also noted.

Another thing that affects your credit is being over the limit. If you’ve thousand dollar limit on your credit card and you overspend, that means crossing the limit. It shows up as a derogatory on your credit. So that is going to negatively affect your credit bureau and when other lenders see your financial institutions they’re going to assume that if the person can’t manage his money then he is not in a position to be a good borrower.

How is a beacon score calculated?

The beacon score has been transitioned to pinnacle score, a similar algorithm is a company’s secret but you can still get an idea of how your score is affected when it comes to beacon score vs fico. What really separates the two? A credit score is a 3 DIGIT numerical value—typically between 300 and 850—used to represent a borrower’s riskiness. The borrowers with a credit score higher than 700 are seen as better potential borrowers. The general factors involved in most credit scoring bureau. 

Types of beacon score 

  • Beacon 5.0 Base
  • Beacon 5.0 Auto
  • Beacon 5.0 Bank Card
  • Beacon 09 Base
  • Beacon 09 Auto
  • Beacon 09 Bank Card
  • Beacon 09 Mortgage

What do they both have in common 

The first thing you should know about credit scores is that they’re not the same. In fact, there are three main credit bureaus – Equifax, Transunion, and Experian – each of which provides a different score based on your unique financial history with them. 

Here’s a bit more information to help you understand this difference…

  1. The amount of late payments 
  2. The number of debts reported 
  3. The types of credit accounts 
  4. Time since each account was opened ( credit history ) 

Conclusion: Beacon score vs Fico score

When it comes to your credit score, no matter if it’s a beacon score vs fico score the only thing that really matters is keeping your score up. There are a number of different factors that go into making up your final number. One such factor is the Equifax Beacon Score which can range from 300-830 where anything above 700 is considered good and anything below 500 is considered bad. In general, however, scores in the 600’s mean you have some work to do when it comes to maintaining a healthy credit history. This post will help you determine if your Equifax Beacon score falls in this range so that you know what steps need to be taken next. 

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Also see:

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Why is Credit Score Important and Your Credit Rating Matter?

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