By using a broader and deeper set of credit file data and more advanced modeling techniques, the VantageScore 4.0 model allows lenders to accurately assess approximately 40 million more consumers than conventional credit scoring models. That’s a group of prospects larger than the population of Texas!
And the numbers only tell part of the story. The scores assigned to this population are highly predictive. VantageScore 4.0 yields incremental predictive performance lift among dormant consumers and a strong gini coefficient among the expanded universe of consumers.
Additionally, according to our Universe Expansion white paper, roughly 10 million of those consumers have scores of 600 or higher, which makes them attractive prospects to many lenders.
Our paper on testing credit scoring models for statistical bias demonstrates that the methods employed by VantageScore 4.0 do not favor any one population over another, and that the model meets requirements of the Equal Credit Opportunity Act (ECOA).
By significantly increasing the number of Americans who can get accurate credit scores, the VantageScore model creates opportunities for lenders and credit-worthy borrowers alike.