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SAN FRANCISCO, Nov. 14, 2024 /PRNewswire/ -- VantageScore, a leading national credit-scoring company, today announced it will make the VantageScore 4.0 credit score model attributes available to lenders beginning in early 2025. The availability of VantageScore attributes is groundbreaking for lenders because, for the first time, they will be able to use the individual quantitative inputs of the industry's leading credit score to power their in-house custom credit score models. Used over 27 billion times in 2023 by over 3,400 financial institutions, no other credit score model with the scale of VantageScore 4.0 makes their attributes transparent and available to lenders.
Credit score model attributes are model components reflective of a person's credit behavior or financial history. They help assess someone's likelihood of repaying a loan by considering factors like payment history, credit usage, and length of credit history. Driven by demand from some of the nation's largest and most sophisticated lenders who recognize VantageScore 4.0 as the most predictive and inclusive credit score, the attributes will provide lenders with several strategic advantages:
"VantageScore 4.0 attributes are designed to enhance lenders' ability to build effective custom credit scoring solutions and credit policies so they can better manage credit risk," said Dr. Andrada Pacheco, SVP and Chief Data Scientist at VantageScore. "The VantageScore 4.0 attributes will give lenders a more reliable, predictive and inclusive understanding of consumer risk."
Lenders who are interested in the VantageScore 4.0 Credit Score Attributes can work with their preferred nationwide consumer reporting agency (NCRA) – Equifax, Experian, or TransUnion. Timing and availability may differ between each NCRA. For more information, please visit https://www.vantagescore.com/lenders/why-vantagescore/our-models/.
About VantageScore®
VantageScore is the fastest-growing credit scoring company in the U.S., and is known for the industry's most innovative, predictive, and inclusive credit score models. In 2023, usage of VantageScore increased by 42% to more than 27 billion credit scores. More than 3,400 institutions, including 8 of the top 10 banks, use VantageScore credit scores to provide consumer credit products including credit cards, auto loans, personal loans and mortgages. The VantageScore 4.0 credit scoring model scores 33 million more people than traditional models. With the FHFA mandating the use of VantageScore 4.0 for Fannie Mae and Freddie Mac guaranteed mortgages, the company is also ushering in a new era for mortgage lending and helping to close the homeownership gap.
VantageScore is an independently managed joint venture company of the three Nationwide Consumer Reporting Agencies (NCRAs) – Equifax, Experian, and TransUnion.
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SOURCE VantageScore