What is a FICO Beacon Emperica Fair Issac Score

How is a FICO Beacon Emperica Fair Issac score figured and why are they different? All the credit scores are figured with the same attributes in mind but they all come from a different credit reporting bureau that will almost always have different credit data reported for each person. So the scores will be different only in the fact that the bureau is reporting something similar but different from the other bureau.

So Equifax will report a Beacon or FICO score that will show your American Express, JC Penny and Toyota Motor credit car loan. They show a FICO score of 715. But Experian’s Fair Issac score shows JC Penny, Toyota and a small medical collection from your local hospital that you did not know about and your score is a 668. Then you check your Transunion Emperica score and you have a 645 because it shows all the above and another brand new loan you just got for a washer and dryer that shos you are maxed out on that line of credit and there is an inquiry for this new line of credit.

So now you have three different scores but the scores are actually all figured with the same parameters.

These scoring attributes are universally considered to be figured like this.

35% based on: Late Payments, Bankruptcies, Collections, Judgments

30% based on: Current Debts

15% based on: How long accounts have been open and established

10% based on: Type of credit (credit cards vs. finance company loan, etc.)

10% based on: Applications for new credit or Inquiries

There are two more scoring models I have heard about in recent days that might mean something in the future. The Vantage Score and the Nexgen Score. The Nexgen score is really just a singular name for the credit score above and it can be figured in a similar way.

The Vantage score however is figured like the A B C D F grading scale used in schools. A is “around” 720 and above, B is a 680 to 720 range, c is a 679 – 650 range, d is 650 to sub 600′s and a F is 575 and below range. These ABCDF scores are supposed to make it easier for a regualr person to understand what the credit scores really means.

Here is a car loan rate sheet at a major bank and the acceptable credit scores.
775+       Preferred
725-774   Platinum
724-700   Gold
680-699   Standard 1
640-679   Standard 2
639-620   Standard 3

Don’t submit any deals with beacon credit report fico scores lower than 620

Here is a car loan rate sheet from a major name 2nd tier credit bank
Credit scores
700+    Super Preferred rates in the 7′s
660+    Preferred            rates in the 8″s
659-620 Standard          rates in the 11′s
619-580 Special             rates in the 13′s
579-560 Regular            rates in the 17′s

Don’t submit any deals with a score lower than 560.

These are all basic rules of thumb a person can use to figure where they stand on the credit score food chain.

Posted in Credit scores.