How Do You Score?
Your credit score is derived from your credit history information using a mathematical formula. Other information may also be factored into the formula such as your income, employment history, whether you own your home, etc. Beacon® scores are the credit scores most lenders use to determine your credit risk. You have two Beacon scores, one from each of the credit bureaus: TransUnion and Equifax. Each score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores tend to change as well. Your two Beacon scores affect both how much and what loan terms (interest rate, etc.) lenders will offer you at any given time. Taking steps to improve your Beacon scores can help you qualify for better rates from lenders.
About Beacon scores
Beacon scores are provided to lenders by TransUnion and Equifax.
It is important to understand that each lender sets their own policies and tolerance
for risk when making credit decisions. There is no one "cutoff score" used by all
lenders.
Understanding the graph. This chart demonstrates the percentage of people within each Beacon score range. For example, about 4 per cent of Canadian consumers have a Beacon score between 550 and 599. A score of 760 places you in the 750 -799 range, along with 27 per cent of the total population. (Note: the score ranges shown above are provided for your information. They do not necessarily correspond to any particular lender's policies for extending credit.)
Your Beacon score changes over time
As your data changes at the credit reporting agency so will your credit score. Your Beacon score from a month ago is probably not the same score a lender would receive from the credit reporting agency today.
