Equifax is a new type of available credit score that could change the way lenders see your next loan application. Dubbed Beacon 09, the new Equifax score is based on the FICO 08 methodology Fair Isaac.
The new score will typically penalize consumers less individual errors, such as paying a bill late. Moreover, the new model is more severe on people who wear very high debt to credit ratios.
Most lenders will continue to use the standard FICO credit scoring methodology for the moment, but consumers should expect that the method 08 FICO score to become more widely used over time. As such, it is a good idea to take a hard look at your current debt burden and make plans to pay down if you expect the need for additional funding in the near future.
Equifax is the second major credit bureau to adopt the new FICO scoring methodology. TransUnion began offering the score in January. It is unlikely that Experian major office remains will be offering FICO 08 any time soon as the two companies are currently involved in an ongoing trial.