Can 20th-century credit scoring models really address the economic realities of the 21st century? By the early 2000s, many lenders had begun to worry that the old ways of scoring customers really were getting, well, old.
In response, the three national credit reporting companies (CRCs), Equifax, Experian, and TransUnion, joined forces to create a more advanced credit scoring solution. The result: the first VantageScore credit scoring model.
To create the original VantageScore model, the three national CRCs assembled a team of industry-leading experts on credit data, credit risk modeling, and analytics. The team leveraged its decades of collective analytical and extensive credit data experience to develop cutting-edge, patented, and patent-pending techniques that can analyze extensive, anonymous consumer credit data — data that more accurately reflected current economic conditions.
Knowing also that tens of millions of creditworthy borrowers were not provided a credit score by traditional models, the VantageScore model’s development team designed the model to score more people with more accuracy and more consistency across all three CRCs.
When the VantageScore consumer credit scoring model was unveiled in 2006, the intellectual property rights were transferred to a new company: VantageScore Solutions, an independently managed firm that maintains, revalidates, and updates the scoring model and educates lenders, consumers, and regulators about its benefits.
VantageScore Solutions is committed to providing greater score accuracy and consistency so that lenders and consumers alike can make credit decisions with a higher level of confidence.
VantageScore Solutions is the independently managed company that holds the intellectual property rights to the VantageScore model.
Formed in March 2006 when the original VantageScore model was introduced, the company is responsible for the continued maintenance and revalidation of the complex mathematics that underpin the VantageScore model.
The VantageScore model and VantageScore credit scores are marketed and sold independently by Equifax, Experian, and TransUnion through licensing agreements with VantageScore Solutions.
VantageScore Solutions does not market the VantageScore model, nor does it sell credit scores. VantageScore Solutions does not manage credit report data.
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The VantageScore credit scoring model continues to score headlines.