The three credit bureaus provide both credit scores and reports. Learn about Equifax Beacon scores, TransUnion Empirica scores and Experian FICO II scores.
A FICO score, first created by the Fair Isaac Corporation, is based on a variety of factors in your credit history. Each of the three credit bureaus provides a unique FICO score, and calls it something different. So how is the Equifax credit Beacon score different from Transunion’s Empirica score and Experian FICO II scores? What information do these credit rating bureaus take into consideration when calculating your credit score?
Differences in FICO Scores
Each of the credit bureaus uses an algorithm based on the original FICO scoring algorithm. In addition, each bureau may have different information about your credit history, since not all creditors report to all three bureaus. One major difference in the credit rating you receive from the different bureaus is the range.
- Equifax Credit Beacon Score Range – A FICO score received from Equifax can range between 300 and 850
- Transunion Empirica Score Range – A FICO score received from TransUnion can range between 150 and 934
- Experian FICO II Score Range – FICO score received from Experian can range between 330 and 830
How Are FICO Scores Calculated?
Credit scores are calculated by combining a number of pieces of information. Each credit score, whether it is the Beacon score, the Empirica score or the FICO II, takes the same debt history information into account when issuing a final score. The two main factors in credit scoring are:
- Debt History – Negative information includes late payments and bankruptcy, or a short credit history and many recent requests for more credit. Positive information that can contribute to a higher score includes consistent on-time payments and a long and stable credit history.
- Amount of Available Credit – The credit bureaus check to see how much of your available credit is being used, compared to the amount of credit you have available. In other words, don’t max out your credit cards, because it will lower your score.
According to the Consumer Federation of America, the score calculations are broken down as follows:
- Debt History: 60% – This includes payment history – 35%, length of credit history – 15%, and applications for new credit – 10%.
- Amount of Available Credit: 30%
- Other Factors: 10%
Understanding Your Credit Bureau’s Credit Score
Before checking your Beacon, Empirica or FICO II credit score, make sure you understand the range of scores offered by each credit bureau. To improve your credit rating, pay down debt and avoid excessive applications for additional debt. For more information, read:
Credit repair cards can help someone with a low credit score re-establish a positive credit history, but choosing the right secured credit card is critical.
Use credit repair cards to help fix your credit score. Secured credit cards, available from most banks, are a great way to establish a new credit history.
Want to repair your own credit rating? Learn how credit reports and scores work, and try these three simple credit fixes to boost your credit score quickly.
Want to know how to get a free credit report from Equifax? Learn about getting a free copy of your debt history without supplying a credit card number.
If you don’t reduce credit card debt by making more than the minimum payments and prioritizing creditors, you will lower your chances of getting out of credit card debt.
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