Advice on Making a Good Beacon Score Chart with Equifax
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It's important to understand what a beacon score is before determining what's a high beacon score, a low beacon score and how to raise a beacon score.
Over time, the beacon score has been referred to as the Pinnacle score. It enables lenders to know the creditworthiness of their debtors. The Equifax Credit Bureau generates this score using a series of complex algorithms. From the numbers generated in this process, creditors and lenders can gauge the borrower's ability to repay their loans after accepting their application.
Despite keeping the actual calculation methods a secret, the Equifax company considers several factors before reaching the final decision. Among them are credit inquiries, the kind of account in use, credit history length, the debt repayment plan, and an individual's borrowing history.
High Beacon Score
A beacon score is said to be high if it reaches 700 or more. A borrower with such a range is low risk in terms of loan defaults, and their credit limit is ranked higher than borrowers who record a lower score.
Credit card companies take this consideration very seriously before issuing credit cards and setting its limit. A good credit score eliminates the possibility of late payments because it reflects the borrower's previous records of their ability to settle their loans on time.
Low Beacon Score
The lenders must submit a report during the borrowing application, demonstrating that the borrower can reimburse the money. It is essential to check the individual's credit ratings, credit card companies, mortgage creditors, and other financial organizations to determine how dangerous it is to lend the amount they seek.
A low score between 300 and 579 is regarded as bad, whereas any score between 580 and 669 is fair.
A person with a low beacon score is more likely to be denied loans, mortgages, or credit cards. Financial institutions rely on the credit data gathered from a borrower's beacon score to decide on their creditworthiness and to know whether they are viable for the high amounts they could have borrowed.
Fair Isaac Corporation (FICO) is a company that analyses the credit risk of a customer. The ratings and insights offered as a result of the exercise assist lenders in making better-informed judgments.
How to Raise Your Beacon Score
Individuals with a low pinnacle score can boost to earn higher chances of getting loans on time. It would be best if you first got your score from Equifax. Doing so allows you to determine whether there are any bogus allegations of outstanding loans that you may have already cleared.
From here, you should make a list of unsettled debts and bills. Clear yourself of all late payments by making it a routine to pay on time.
Finally, limit the number of credit applications you make over a certain period. Before a new lender can approve you for a loan or credit card, they must receive a loan inquiry that includes a list of lenders you've borrowed from in the past. When the list is too long, your beacon score suffers a negative impact, which costs you the opportunity to get the loan.