Equifax has updated its scoring system. ‘Beacon 9.0’ is touted by Equifax as the industry’s ‘leading-edge scoring system. While it maintains consistency with prior scoring criteria, it now provides refinements. These refinements reflect changes in consumer lifestyle and the market. It’s a scoring system that more effectively evaluates new prospects. It predicts the probability of an account going “bad”. Ideally, scores range from 300-900. Lenders like to see 680+ for any of the AAA Rates and insured Mortgages.

What does it mean? This new credit scoring system is designed to determine the likelihood of a credit applicant falling behind in the next 90 days or have delinquencies in the next 24 months. Consumers with fewer credit accounts or ‘thin’ files will have much lower scores. Consumers with a Lines of Credit (LOC) should expect these files to be evaluated separately from other revolving credit instruments. If the LOC is at its limit and the balance has not moved in some time this will impact the credit score.  AND, cell phones are now affecting your credit. Previously, cell phones were noted but didn’t impact one’s overall credit score.