Calculated with Fair Isaac's updated and enhanced FICO scoring model, the new score offers lenders an improved tool to manage credit risk by ranking consumers according to the likelihood that their credit obligations will be paid as expected.

"By studying large samples of Equifax Canada's credit reports, we found that consumers are opening more credit lines, carrying higher balances, and generally using credit to a greater degree than ever before," said Ron Totaro, vice president of Global Scoring at Fair Isaac. "This richer data has helped Fair Isaac scientists to produce a more powerful credit risk score, particularly when applied to new-account populations and people who have a history of serious credit problems. It also prompted Fair Isaac to expand a key consumer benefit already built into the prior FICO scoring model which protects consumers who shop among several lenders for the best auto loan or mortgage. As a result, lenders and consumers both will benefit when lenders use BEACON 5.0 scores from Equifax Canada."

Previously, Fair Isaac's scoring model protected consumers who shopped for a loan for a period of up to 14 days. The new scoring model extends this protected shopping period to 45 days. For mortgage or auto loans, lender inquiries on the consumer's Equifax Canada credit report are counted by the scoring model as a single inquiry during any 45-day period. Consumers benefit because they can shop for the best loan without worry that multiple lender inquiries will significantly affect their future BEACON 5.0 scores.