PRODUCTS : ADD-ONS : CREDIT SCORING
BEACON Scores are scaled so that scores range from the mid-300s to the
mid-900s. A high score is indicative of likely good future risk perfomance, while
a low score is likely of a future bad risk performance.
In addition to your overall score, you will receive up to four reason codes. These
codes and reasons are listed in descending order of importance and points lost.
Example: If no public records, file receives 75 points
If public record within 5 months, file receives 10 points (65 pt. Loss)
In developing the BEACON Scoring System, the following performances were
defined as "bads":
Bankruptcy (all types)
Derogatory public records
Charge-off or loan default
Accounts in collection
Certain credit report narratives defined as serious delinquency
Reports with the following were defined as "goods":
No delinquent behavior
Only isolated occurrences of minor delinquency
Most Often Asked Questions
How can a report look great but have a very low BEACON score?
BEACON looks at the report for those characteristics that have been found to
be predictive of high risk 24mos into the future. So, even though a report may
judgmentally appear to be low risk, an empirically derived review may assess a
high risk of future serious delinquency and bankruptcy (e.g., many highly used
Why did the credit report receive the BEACON score it did?
To understand why a credit report scored the way it did, look at the four reason
codes and explanations given with each score. These are the top reasons listed in
order of importance.
Do BEACON scores reflect a fixed level of risk?
No. The score represents a relative degree of risk as compared to other Equifax
consumer credit reports. Therefore, the credit risk experienced at different score
ranges may vary over time and from lender to lender.