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Beacon Score
The terms Beacon Score, Credit Score, and FICO score are all used interchangeably although this is not necessarily accurate. Each of the three major credit reporting agencies (Equifax, Experian, and TransUnion) has their own algorithms for calculating credit scores. The Beacon Score is the trademarked name for the method of calculation used by Equifax.
In its broadest sense a Beacon Score is simply an estimate of an individual's credit value to potential lenders. Currently, the national average Beacon score is 640. In comparison, a score in the range of 800 to 900 would be considered excellent, but a score that high is rare in the United States.
Approximately one-third of an individual's Beacon Score is determined by their payment history and another third by the amount they currently owe. The final third is a mixture of the length of the person's credit history, new lines of credit they have established, and the type of credit that has been used.
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