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Banks use credit scores to assess how capable a customer is of repaying the loans he/she has taken. Among the credit bureaus, the Equifax bureau uses a system called the beacon credit scoring system, to calculate credit scores. The credit scores are calculated based on the customers past. Factors like debts, income, changes of address and job history are taken into consideration while calculating the score. The score can range from a dismal 300 to a dazzling 850. The higher the score the better the chances of getting a good loan with low interest rates. Of course, the lower the score the harder it will be to get a good loan.