What’s The Score with Credit Score

Beacon and Empirica scores are built by grouping data into predictive characteristics in five categories.

Past Payment Performance — 35%

• The fewer late payments, judgments, liens or collections, the better.

• Recent late payments weigh more than those two years past.

Credit Utilization — 30%

• Low balances on several cards are better than high balances on a few cards.

• Balance should be at or below 30% of the available credit.

• Too many cards can be a detriment.

Credit History — 15%

• The longer accounts have been open and in good standing, the better.

• Avoid ‘credit surfing.’ Opening  new accounts and closing established accounts will negatively impact on a credit score.

Types of Credit in Use — 10%

• Finance company accounts score lower than traditional banking or retail accounts.

• Deferred payment options funded  y finance companies impact the score accordingly.

Inquiries — 10%

• Looking for new credit over a short period of time can be indicative of higher risk.

• Promotional or administrative inquiries (i.e. credit grantor updates) will show on the report but do not affect the credit score