If you have ever looked at your credit report and wondering what your Beacon rating was and why it is even used for you have come to the right place.
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First off your Beacon rating is used to determine your creditworthiness by your creditors. Your credit score is a very vital factor when a creditor is trying to determine what interest rate you will be charged on your mortgages, loans and credit cards.
The information on your credit report is used to determine your eligibility to obtain credit, along with other calculated information that each creditor determines. They will look at your score, the different reporting on your credit report, and your ability to obtain and maintain a good credit rating are all part of your financial health.
There are 2 credit bureaus within Canada and they are Equifax, and TransUnion.
It is a good idea to check both scores once or twice a year. If there is any missing information, or incorrect information reporting on any of your bureaus you should request that it be fixed or updated so your credit scores and reports show the most accurate, and complete.
Your Beacon Credit Score Ratings range from 350 to 850. If your credit rating is below 600 you will start to see more turn downs and or see much higher interest rates than what is advertised. The most common ratings categories are:
| 500-559 very poor | 560-619 poor | 620-674 acceptable |
| 675-699 good | 700-719 very good | 720-850 excellent |
This will effect your debt relief choice because if your rating is below 560 and you filed bankruptcy it would have a much lesser effect on your credit rating than if you filed with a rater better than 700. If you have a higher credit score you might want to consider refinancing your mortgage or getting a home equity loan to restructure your debt.
This article was revised from Debtsteps.com.
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