Which Is Better, Beacon Score Or FICO (Fair Isaac) Score?

Beacon score pulls from Equifax and TransUnion, merges traditional metrics with alternative data, and assigns extra weight to recent activity; it counts rent, utility and other non‑mortgage payments when reported, includes soft inquiries, and refreshes the model each month.

FICO score relies on a single bureau's core credit file, emphasizes long‑term payment history, balances owed, length of credit history, credit mix and hard inquiries, and typically excludes non‑traditional accounts such as rent or utilities. Recent post‑2020 research highlights these factor differences, helping lenders decide which model aligns with their risk strategy.

FICO score typically predicts default risk a touch better than Beacon, though the difference is modest and context‑dependent. Both models draw from the same credit bureaus, but FICO incorporates newer payment‑behavior algorithms that give it a slight edge, especially for mortgage and auto loans - exactly the lenders we discussed in the scoring‑factors section.

• A 2022 study of 1.2 million mortgage applications reported an AUC of 0.79 for FICO 10 versus 0.77 for Beacon, indicating marginally stronger discrimination of future defaults (mortgage risk study 2022).
• A 2021 credit‑card analysis found default‑prediction error rates of 3.2 % for FICO 9 and 3.7 % for Beacon, with FICO showing a lower false‑negative rate, but both scores still captured over 96 % of true defaults.

Next, we'll show how to discover which of these scores your lender actually uses.

Your lender usually tells you whether it pulls the Beacon score or the FICO score during the application. You can confirm the exact model with a few quick checks.

• Ask the loan officer or mortgage broker which scoring model they pull; most banks state 'FICO 8' or 'Equifax Beacon 5' in the pre‑approval notice.
• Review the credit‑pull section of your loan estimate; the 'Credit Score Used' line lists the model and version (lender's credit‑score disclosure).
• Check any email or portal notification that shows a 'credit score type' after you authorize a hard inquiry.
• Log into your free credit‑monitoring service; many display both scores and label the one the lender accessed.
• Request a copy of the credit report the lender pulled; the header will note the scoring agency (Equifax/TransUnion for Beacon, Experian for FICO).

The mortgage rate follows the credit model your lender chooses - today, most lenders still price loans with the FICO score (the standard FICO 5‑score from Experian, Equifax or TransUnion), though a growing minority will use a Beacon score if you request it. In practice, a higher FICO or Beacon number lowers the offered rate, but the score that actually moves the rate is the one the lender explicitly uses.

If a lender pulls both reports, they often apply the higher of the two numbers, but many will state up front which model drives pricing; that is why the next step - checking both scores in five quick steps - helps you see which number will affect your loan offer. See recent industry data confirming FICO remains the mortgage‑rate benchmark.

You can pull both your Beacon score and FICO score in five quick steps. Now that you've seen how the models differ, follow these steps to see your actual numbers.

1. Gather your Social Security number, birth date, and current address.
2. Visit Annual Credit Report website and request Equifax and TransUnion reports; each includes the Beacon score (Equifax/TransUnion model).
3. Open a free FICO‑eligible account with a major credit‑card issuer or start a myFICO trial; the portal displays your FICO score.
4. Record both numbers in a spreadsheet or note app, labeling each clearly with the retrieval date.
5. Set a calendar reminder to repeat steps 2‑4 every six months, since both scores update after new activity.

You can get a free FICO score from several credit‑card issuers, but a free Beacon score is essentially unavailable to consumers.

Most major cards - for example, Citi, Discover and American Express - update a FICO 8 or 9 score each month at no charge; the score appears in the online account dashboard. Citi free FICO score is a typical illustration.

Beacon scores are proprietary models owned by Equifax and TransUnion and are only shared with lenders or through paid subscription services; they do not appear in any free consumer portal. Equifax Beacon score details confirms this limitation.

Beacon shines in several practical situations where its data sources or update cadence give borrowers an edge over a FICO score.

• New‑to‑credit consumers with thin files benefit from Beacon's inclusion of utility and phone‑payment data, which FICO often excludes, so lenders see a more complete picture.
• Rent‑paying renters see a boost because Beacon pulls verified rent histories faster than FICO, helping them qualify for first‑time mortgages where lenders rely on Beacon.
• Shoppers comparing credit cards appreciate that Beacon treats many inquiries as soft, keeping the score stable while they explore options, whereas FICO may penalize each hard pull.
• Borrowers who just corrected a missed payment can leverage Beacon's weekly updates to reflect the improvement immediately, while FICO's monthly refresh may lag.
• Small‑business owners with mixed personal and business activity gain from Beacon's aggregation of merchant‑service fees and other business‑related personal accounts that FICO typically ignores, improving loan eligibility.

You can knock down errors on a Beacon score or a FICO score in days by following a focused dispute workflow. Both models draw from the same credit file, so correcting one entry instantly improves the other.

• Pull your latest report from Equifax, TransUnion, and Experian; note the exact line that looks wrong.
• Write a concise letter (or use the online portal) that states the item, why it's inaccurate, and attaches supporting proof such as a cleared balance screenshot or a court order.
• Send the dispute to the bureau that reported the error via certified mail or their secure upload; include your full name, address, and the last four of your SSN for verification.
• Mark the dispute as 'urgent' if the item impacted a recent loan application; bureaus must investigate within 30 days, often completing the review in 10‑14 days when documentation is clear.
• After the bureau confirms the correction, request an updated free report and watch the Beacon and FICO scores shift on your next credit‑monitoring check.

The fastest way to see the change is to log into a free monitoring service (for example, the CFPB's dispute guide) and refresh the score after the bureau closes the case; most lenders notice the new number within one billing cycle.

Beacon score and FICO score can jump dramatically because they draw from different credit bureaus and weigh factors uniquely. When a lender updates a file with a new account, a hard inquiry, or a recent payment, Equifax or TransUnion may reflect the change within days, while the FICO algorithm - relying on its own timing and weighting model - might lag or react more strongly. Likewise, a settlement or a dispute that removes a negative entry from one bureau instantly lifts the Beacon score, but the FICO score remains anchored to the older data until the next reporting cycle.

A second source of swings is the type of data each model includes. Beacon incorporates utility and telecom payments that FICO often ignores, so a sudden boost in those accounts can propel the Beacon score upward while the FICO score stays flat. Conversely, a missed mortgage payment triggers a heavier penalty in FICO because its default‑risk weighting is higher, causing the FICO score to dip sharper than the Beacon score. Understanding these timing and factor differences explains why the two numbers can diverge overnight, setting the stage for the dispute‑fix strategies discussed later.

You can clear a ChexSystems entry in four straightforward steps.

These actions turn a blocked account into a green light for most banks, second‑chance banks, and many fintechs.

1. Obtain the report - Request your free ChexSystems consumer report at the ChexSystems consumer portal within 30 days of request. Review every line for inaccurate dates, amounts, or accounts you never opened.
2. Dispute inaccuracies - File a dispute online or by certified mail for any errors. Include copies of supporting documents; ChexSystems must investigate within 30 days and correct false information.
3. Settle or negotiate legitimate debts - Pay the outstanding balance or arrange a payment plan. After settlement, ask the reporting bank for a 'goodwill' or 'delete' letter confirming the entry will be removed once the debt clears.
4. Confirm removal - Re‑order your report after 30 days. Verify the entry is gone or marked as closed. If it remains, repeat the dispute or contact the bank's compliance department directly.

Once the entry disappears, you can approach banks that previously screened ChexSystems with confidence.

Lenders generally pull the FICO score when a small business owner applies for credit, but many also request the Beacon score if they need a second data source. The FICO score is the Fair Isaac algorithm used across personal and commercial lending; the Beacon score is Equifax/TransUnion's model that appears in some auto‑loan and alternative‑finance decisions.

For an SBA 7(a) loan, the SBA requires a personal FICO of at least 680, so the underwriter will base the risk assessment on that number.

An online lender such as Kabbage often examines the Beacon score to supplement its quick‑approval algorithm. Traditional banks may look at both scores to verify consistency, while fintech platforms may rely solely on Beacon because it updates faster from the two credit bureaus. In all cases, the score you see on your personal credit report is the primary factor lenders evaluate for your business's credit line.