Using the VantageScore model for mortgage originations offers significant benefits to consumers and lenders. The model is highly predictive, more consistent and can score a larger number of consumers than other commonly used scoring models.
As the U.S. population changes and their borrowing behaviors change, VantageScore is able to better assist lenders in identifying risk and helping them grow their businesses while encouraging sustainable homeownership opportunities for consumers.
VantageScore models are routinely tested for performance by VantageScore Solutions and, more importantly, by the more than 2,200 regulated financial institutions that use them. More than 10.5 billion VantageScore credit scores were used between July 2017–June 2018. Our publicly available annual assessment results confirm that our models perform and are highly accurate.
Demonstrating the predictive performance improvement, there is nearly an identical alignment of default rates between those with unconventional credit histories and those who have conventional credit behaviors in the first year of a new account.
|Scoreband||Days past due||Profile||Default rate after 12 months|
The three scores provided in a tri-merge credit report have less variance, limiting risk the uncertainty that occurs when credit scores differ significantly from one bureau to the next.
The VantageScore models score approximately 40 million more consumers than legacy models. These include:
|Emerging Borrower/Young File||Young to credit||Consumers who have only credit accounts that are less than six months in age|
|Dormant||Infrequent or rare users of credit||Consumers who haven’t had an update/reporting on their credit files in the past six months but have had updates more than six months ago|
|No Trades||Have only external collections, public records and inquiries on their file||Consumers who have no credit accounts but are scored based on the external collections and public records on their file|
Within these segments of consumers are large populations of minority consumers:
|Unscoreables—in total||Unscoreables with scores 620+|
|Total||~40 million||10.06 million|
|Black and Hispanic||12.2 million||2.4 million|
|Asian/Pacific-Islander||1.6 million||<1 million|
|White||25.7 million||7 million|