The VantageScore 3.0 and 4.0 models include a variety of features that make it easier for lenders to implement, and offers a wide range of supporting materials to assist in the implementation process.
300-850 score range. VantageScore 3.0 and 4.0 credit scores range from 300 to 850, employing a numerical scale more familiar to lenders and consumers than the range of 501-990 used by earlier VantageScore models. For background on the reasons for this change, see this video.
One model used across all bureaus. The VantageScore models are the only true “tri-bureau” credit scoring model that can perform identically on data from all three national credit reporting companies (CRCs—Equifax, Experian and TransUnion). Competing models require custom programming for each CRC database – a practice that adds variability to score results. Not only does this approach facilitate more consistent scoring across all CRCs, it enhances the level of confidence for lenders of all types. Importantly, VantageScore is not a “tri-merge” report, and stand-alone score from each bureau can be used in lending decisions.
Fewer, easier-to-understand reason codes. Both lenders and consumers will appreciate that the VantageScore 3.0 and 4.0 models have fewer reason codes than earlier models, written in plain English to help consumers better understand how data in their credit files impacts their credit scores. Better still, VantageScore Solutions created a new website,ReasonCode.org, for consumers who want to learn more about the reason codes they receive with score disclosures and adverse action notices. ReasonCode.org also provides suggestions on how consumers can improve their credit scores over time.
Consumer resources. An informed borrower is a better borrower, and empowering consumers with knowledge about credit scoring helps them make better credit management decisions. The YourVantageScore.com website offers a wealth of facts and tips for consumers curious about credit scoring, or serious about improving their scores. And the Credit Score Quiz, co-sponsored with the Consumer Federation of America, helps consumers test and improve their knowledge of credit scoring and its importance to financial health.
Implementation support. VantageScore and each of the national credit reporting companies offer a host of resources to assist with model implementation. For more information, see theVantageScore Challenge page.
Wonder what those VantageScore reason codes really mean? Easy translations just a click away.