VantageScore is now accepted for mortgages with immediate effect, potentially creating millions of new homeowners that had been exclBy taking a wider range of payments into consideration, VantageScore 4.0 opens mortgage access to millions of “credit invisible” Americans, as recently reported by Bankrate.

More of what is on consumers’ credit reports - telecom payments, utility payments, rental payments - are part of the consideration process about whether they’re creditworthy for a mortgage,” says Tony Hutchinson, Head of Public Affairs at VantageScore. “That is going to open the door for a large number of people who have been invisible. It becomes empowering for the consumer.

VantageScore scores 33 million more consumers than FICO, so borrowers who were invisible to the FICO model could emerge from the shadows, Hutchinson says. Among those 33 million Americans, 13 million have a VantageScore score of at least 620, the threshold for qualifying for Fannie and Freddie loans. And from that subset, an estimated 5 million people could afford to be homebuyers.

Additionally, while VantageScore’s competitor considers a consumer’s data from a single point in time, VantageScore 4.0 looks at a period of time to determine trends. Hutchinson elaborates:

Maybe you have a score that’s moderate, but you’re trending up. We can show that. Instead of just looking where you are, we look at where you’re going.

For more information on VantageScore 4.0 implementation, please visit VantageScore’s Mortgage landing page.

https://finance.yahoo.com/news/type-credit-score-bursts-onto-150316852.html