VantageScore 4.0 is the first and only tri-bureau credit scoring model to incorporate trended credit data newly available from all three national credit reporting companies. This data supplements the static borrowing and payment events historically recorded in consumer credit files and captures the trajectory of borrower behaviors over time. For instance, credit files have always recorded monthly loan payments, and whether those payments were made late or on time. Trended credit data attributes reveal patterns in credit behaviors, such as the number of balance decreases over time or growth in borrower’s utilization.
The new model applies VantageScore’s patented characteristic-leveling processes to these attributes, maintaining matchless score consistency across all three CRCs.
The VantageScore 4.0 credit scoring model delivers originations lift among Prime and Superprime consumers of up to 20 percent. Harnessing trended credit data attributes has helped VantageScore 4.0 achieve substantial lift in scoring accuracy compared with VantageScore 3.0’s already-impressive predictive performance, particularly within the Prime and Superprime credit bands—the highest-scoring consumers of greatest interest to many lenders.