Beacon Score

What is the Beacon Score?

The Beacon score was an early credit-scoring model created by FICO and commonly associated with Equifax. Over time it was rebranded and integrated into the family of FICO scores. For example, Beacon 5.0 is now referred to as FICO Score 5. The Beacon name is largely historical, but the scoring concepts continue under FICO’s current score versions used across lending industries.

How FICO scores work today

• Credit bureaus (Equifax, Experian, TransUnion) compile consumers’ credit information into credit reports.
• FICO converts that report data into three-digit credit scores, typically ranging from 300 to 850; higher scores indicate lower credit risk.
• FICO has released multiple versions and industry-specific models over the years. Older models remain in use by some lenders while newer models are adopted by others.
• Consumers generally have many different FICO scores (and versions) rather than a single universal score. Examples of industry-specific scores include:
• Mortgage: FICO Score 5
• Auto lending: FICO Auto Score 5, 8, 9
• Credit cards: FICO Bankcard Score 5, 8, 9

FICO vs. VantageScore

• The three credit bureaus jointly developed VantageScore as an alternative to FICO. VantageScore’s latest major version is 4.0.
• Both FICO and VantageScore use credit report data and score consumers on a 300–850 scale, but they differ in methodology and eligibility rules. For example:
• Typical FICO scoring often requires credit accounts open for at least six months and recent reporting to produce a score.
• VantageScore can often generate a score with accounts open for one month and at least one account reported within the past two years.
• Because methodologies differ, the score you see from one service may not match the score a particular lender uses.

What influences your credit score (FICO weighting)

FICO generally weights credit-report information approximately as follows:
– Payment history: 35% — on-time payments vs. missed/delinquent payments.
– Amounts owed: 30% — especially credit utilization (balance relative to available credit).
– Length of credit history: 15% — older, well-managed accounts are beneficial.
– Credit mix: 10% — having different types of credit (cards, installment loans) can help.
– New credit: 10% — many recent accounts or inquiries can lower your score.

These weightings are guidelines; versions and industry-specific models can vary.

How to improve your credit score

• Pay all bills on time. Payment history has the greatest impact.
• Keep credit utilization low — aim to use a small percentage of available credit.
• Keep older accounts open when sensible to preserve your credit history length.
• Avoid opening many new credit accounts in a short period.
• Maintain a healthy mix of credit types if appropriate for your situation.

Checking your credit score and reports

• Many banks and credit card issuers provide free credit scores to customers. Free-score websites also exist.
• Scores shown to consumers may differ from the score version a lender uses when you apply for credit.
• You are entitled by law to one free copy of your credit report each year from each major bureau via AnnualCreditReport.com.
• If you find errors on your report, you can dispute them with the reporting bureau; the bureau must investigate and respond.

Why credit reports and scores can differ across bureaus

Not all creditors report to all three bureaus, so the information in your Equifax, Experian, and TransUnion reports can differ. Those differences can produce different scores from each bureau.

What is a good credit utilization ratio?

Lower is better. A common guideline is to keep utilization at or below 30% of available revolving credit; lower ratios are often more favorable.

Bottom line

“Beacon” is an older FICO-branded score name that has been folded into the broader set of FICO scores still used today. Credit scoring systems have evolved, and multiple versions and competitors (like VantageScore) exist, so consumers typically have several different credit scores. The fundamentals of building and maintaining good credit remain consistent: pay on time, keep balances low relative to limits, avoid excessive new credit, and retain long-standing accounts.