Ever wonder how that magical number "The Credit Score" – is computed?
If you are shopping for credit, you are probably hearing the term FICO or BEACON score. The FICO score was developed by Fair Isaac & Co., which began credit scoring in the late 1950s. The point of the score is consolidate your credit profile into a single number. The Beacon score is a brand name used by Equifax, the largest credit-reporting agency in Canada. While Fair, Isaac & Co. and the credit bureaus do not reveal how these scores are computed, whether you get a loan or not is a numbers game: The more points you score on your credit app, the better you do. (Source: Gail Vaz-Oxlade - Canada Finance)
