Let’s Talk About VantageScore 4.0

VantageScore is the first-ever only tri-bureau scoring model to incorporate trended credit data. The model utilizes machine learning to give lenders extra confidence to extend loans to consumers who would otherwise be left out. With this technology, VantageScore expands mainstream lending making it extremely easier to implement. 

So What’s different about VantageScore?

One of the main features that make VantageScore different from all other credit scoring models is its consistency, accuracy, and more importantly, it’s an all-inclusive model. This credit scoring model provides the lenders and consumers “with highly predictive credit scores that are easier to understand and score more people.”

Who Can Benefit From VantageScore 4.0

If credit affects you, then definitely VantageScore 4.0 is for you. 

VantageScore 4.0 is the fourth generation of the tri-bureau scoring model from VantageScore solutions

It is a model that has been used to score more than 40 million people than any other commercially available model and helps the consumers get better access to credit and credit facilities

The VantageScore 4.0 may be used across different credit products like credit cards, auto loans, and student loans

As a lender, one thing you will love about this credit scoring model is that it offers you predictive performance lift across all credit industries, including “auto banking, credit card, and mortgage; outperforming VantageScore 3.0 in all major credit categories (e.g., auto, mortgage, credit card, and installment lending categories), with significant predictive lift overall.”

Some of the Benefits of VantageScore 4.0

This credit scoring model incorporates all the benefits and features of earlier models for example “credit score consistency, incorporates rent, telecom and utility payments (if that information resides in a consumer’s credit files), and introduces a number of new innovations.

One of the best features of VantageScore 4.0 is that it utilizes Machine Learning. According to the VantageScore website, “For consumers with limited credit histories (i.e., those with no update to their credit file in the last six months), VantageScore used machine learning to enable its model to score these consumers. This technique also strengthens the model’s ability to accurately score these consumers, who are unable to obtain scores from other commercially available scoring models.”

Lastly, VantageScore takes into account negative data suppression. VantageScore was built with the CRCs’ National Consumer Assistance Plan (NCAP) in mind. VantageScore provides the removal from consumer credit files several types of information that may negatively impact a consumer’s credit score. 

So what do you think about VantageScore 4.0? Do you think it’s taking over the industry?