Credit Score TidBit

Here’s a tidbit of info for those that don’t know. Have you ever had a client tell you that their credit score was good because they just pulled it through Equifax’s consumer platform, only to pull a report yourself and see it way lower than your client thought? This is because the consumer is seeing their “Credit score,” and we are seeing their “Beacon score.” Seeing as they likely won’t know what the difference is, here are a few specific differences between the two:

1. The Beacon score is specific to the mortgage industry and the factors there within / The Credit score is more broad and includes predicted habits in all areas of credit.

2. Beacon looks at one’s past 24 months of reporting / Credit looks only 6 months back.

3. Beacon only recognizes a trade line as an influence after 3 months of reporting / Credit recognizes trade lines after first report.

4. Beacon predicts potential delinquency within the next 2yrs / Credit predicts within the next 1yr.

These are the reasons why Credit scores are generally higher than Beacon scores. Consumers can obtain their Beacon score but I believe it is an extra $30 or so. I’m sure we can all remember multiple times a client has said that their score is great, only to hear us tell them it actually isn’t.