In the mortgage industry, the VantageScore 4.0 model provides a 5.4 percent performance improvement over the VantageScore 3.0 credit score model for originations.
Value of VantageScore
The VantageScore model can uniquely improve a mortgage lender’s business while increasing responsible access to mortgage credit for consumers. By widening the window without lowering the bar in terms of credit standards, lenders can reach more qualified applicants.
- More potential customers. VantageScore provides a score to 30-35 million* more people than conventional models. 10 million of these newly scored consumers are prime or near-prime, and thus potentially eligible for mortgages.
- More consistent scores. Legacy models create a situation in which credit scores can vary widely between the three credit bureaus. VantageScore minimizes this variance using a patented approach that no other model can emulate. It’s the most consistent model across all three credit bureaus, and the only true tri-bureau model in existence.
- Strong risk management. VantageScore is at the cutting edge of predictive power thanks in part to fresher, more granular data and trended credit data, providing highly predictive scores. No matter where on the credit curve an applicant may fall, VantageScore is a powerful tool.
- More consumer-friendly. VantageScore has been proud to pioneer the use of rent, telco, and utility data and the exclusion of paid collection accounts. These consumer-friendly features also help lenders by giving them a complete and fair picture of their customers’ credit.
* Reduction in public records and collection trade lines in consumers files will cause the number of consumers who would be newly scoreable using the VantageScore credit scoring model to decline.