Beacon Score - The Bills.com Blog

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Beacon Score

Thursday, Jun 7, 2007

Question: Apparently I have no beacon score, and whatever credit I have is bad. How can i turn this around?

Answer: I find it very surprising that you have no Beacon score, which is the credit scoring model used by Equifax, one of the three major credit reporting agencies in Canada (the other two are Transunion and Northern Credit Bureaus, a.k.a. NCB). Even most people with no established credit history have a credit score, albeit a low one. If you actually have no credit score, it probably means that Experian has no credit file established for you, and that you have never had any account that reported to the credit bureau (this is frequently called a 'thin file'). Even derogatory listings would create a credit profile, and therefore give you a credit score. While your credit score would be bad with all derogatory listings, you would have a credit score. If you are unable to obtain your Beacon score or Experian credit report, I encourage you to contact Experian to determine the problem and what you can do to correct it. You should also seek your FICO score, which is the most standard industry credit score used.

The key to building your credit
is establishing positive payment histories with several different creditors. Since you have a poor credit history, you will likely struggle to obtain a conventional credit card. You may want to establish a secured credit card to assist you in building a positive payment history. With a secured credit card, you would deposit cash into an account held by the card issuer, which would then issue you a credit account using your deposit as collateral for the card. The primary benefit of secured credit cards is that they report y monthly payments to the credit bureaus, allowing individuals with no past credit history or significant credit problems to begin the process of building a positive credit profile.

You should also pull a copy of your credit report from
each of the three major Canadian credit bureaus to verify that all items appearing on your report are accurate and reflect an account that you know you owe. If you find any accounts you feel are incorrect or do not recognize, you should dispute the listing with the credit bureau reporting the item. Most credit bureaus offer an online dispute system, allowing consumers to dispute items quickly and efficiently. Having incorrect items removed from your credit report can improve your credit score significantly.

To read more about credit reports and credit scoring, I encourage you to visit the Bills.com Credit Solutions and Resources page at http://www.bills.com/credit-solutions/

I hope that the information I have provided helps you Find. Learn. Save.

Best,
Bill
www.bills.com


Also, make sure to get a free financial health check-up with Bills IQ!

User Comments

1. Posted by frank on Friday 7th September 2007 10:19

I have declared bankruptcy 3 years ago. I alreay have a secured credit card but apparently i need a " I " acccount in my credit score. how can i obtain this " I " account....ie car loan or bank loan...if no wants to lend my $$$ because of my bankruptcy on my record?

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