The status quo has lost its status

A new standard in credit scoring innovation

VantageScore 4.0, the fourth-generation tri-bureau credit scoring model from VantageScore Solutions, sets a new standard for predictive performance and modeling innovation, pioneering several industry “firsts” that benefit lenders and consumers alike.

VantageScore scientists incorporated groundbreaking modeling techniques and strategies into the development of VantageScore 4.0:

The VantageScore 4.0 model was built using a refreshed data set from the years 2014-2016, to take into account the latest credit products and trends in consumer behavior. Development was based on anonymized consumer credit files from all three CRCs.

As the first and only tri-bureau credit scoring model, a patented hallmark of VantageScore is the ability to deploy the same model independently at Equifax, Experian and TransUnion, which means a consumer’s credit scores are also more consistently aligned.

The new model offers predictive performance lift across all credit industries, outperforming VantageScore 3.0 in all major credit categories, with significant predictive lift overall in loan originations and a 5.3 percent lift in mortgage originations. This is despite the current low-default risk credit cycle, in which VantageScore 3.0 (and most other credit scoring models) enjoy a high level of accuracy.

Incorporation of trended credit data across an expanded applicant pool, combined with this 5.3 percent lift in predictiveness for mortgage originations, makes VantageScore 4.0 an ideal tool for the U.S. mortgage market. A de facto government-sanctioned monopoly currently makes an outdated FICO model the only scoring option for that market, but VantageScore continues to advocate for credit-scoring competition in the mortgage arena.

VantageScore 4.0 builds on the rollout of the VantageScore 3.0 model in 2013, which introduced many innovations including enhanced ability to score more consumers and provided improved transparency and consistency of scores across all three CRCs. The success of VantageScore 4.0 powered tremendous growth in usage of VantageScore models, with nearly 10.5 billion VantageScore credit scoresused by over 2,800 unique users, including more than 2,200 lenders, from July 2017 to June 2018. That’s 300 percent growth over the past five years!


Breaking Convention

The VantageScore 3.0 model challenges the status quo.
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