Often, a credit bureau has a score associated with it, which is used by a lender to quickly categorize various credit candidates into different classifications based on perceived risk. This score, often referred to as your Beacon Score, is derived from a formula that utilizes the information provided by a credit bureau. The score is inversely related to the risk a credit candidate poses to a lender in terms of repayment. Simply put, the higher the score, the better chance you have of being approved for credit. Credit scores have a top end of approximately 800, with most individuals falling in the 500 to 700 range.
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