VantageScore Releases Results of 2024 Model Performance Assessment; Continues to Deliver Superior Predictive Performance, Demonstrates Commitment to Transparency and Fair Lending

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Oct 02, 2024, 09:00 ET

Key Takeaways:

VantageScore 4.0 Performs Better: VantageScore 4.0 outperforms competing credit score models across most major product categories – critical for lenders in today's challenging economic environment.
Trended Data Improves Results: The model assessment confirms that VantageScore's use of trended attributes brings significant predictive performance improvements within both the lower scoring and higher scoring credit originations segments.
Commitment to Transparency and Fair Lending: The annual model assessment underscores VantageScore's commitment to industry transparency and delivering fair, unbiased credit scores to today's largest financial institutions.

SAN FRANCISCO, Oct. 2, 2024 /PRNewswire/ -- VantageScore, a leading national credit-scoring company, today released the results of its seventh annual Model Performance Assessment, reaffirming the VantageScore 4.0 credit score model's superior predictive accuracy. The report, which covers performance data from June 2021 to June 2023, provides an in-depth comparison of VantageScore 4.0 against prior versions of VantageScore models as well as other benchmark credit score models. Results of the report confirm that VantageScore 4.0 provides lenders with a highly predictive, consistent, and fair credit scoring model.

VantageScore 2024 Model Performance Assessment

"The results of this year's assessment demonstrate that VantageScore 4.0 offers the highest levels of predictiveness and reliability, which is crucial for lenders who need to make informed, risk-sensitive decisions," said Dr. Andrada Pacheco, SVP and Chief Data Scientist at VantageScore. "In an ever-changing economic environment, the ability to accurately assess credit risk has never been more important."

Highlights from the performance assessment include:

VantageScore 4.0 Performs Better: VantageScore 4.0 outperforms prior versions of VantageScore models as well as other benchmark credit score models across most major product categories, including Bankcard, Auto, Mortgage and Personal Installment Loans.
Trended Data Improves Results: VantageScore 4.0 was the first and only tri-bureau credit scoring model to incorporate trended credit data and leverage machine learning for superior performance. The model assessment confirms that trended attributes bring significant predictive performance improvements within both the lower scoring and higher scoring credit originations segments.
High Consistency: VantageScore uses a proprietary attribute leveling process, which offers a high degree of consistency in the level of a consumer's credit scores obtained from each of the nationwide consumer reporting agencies (NCRAs).
Financial Inclusion: The 2024 model assessment reaffirms VantageScore's commitment to delivering a credit score model that produces unbiased, consistent results across ethnic groups. This commitment to fairness aligns with regulatory expectations and underscores VantageScore's dedication to promoting equitable credit practices.

Reinforcing the model assessment results, recently published research by the largest bank in the U.S. concluded that VantageScore 4.0 outperforms Classic FICO. (Source: 'The SCORE' Podcast: Bank of America: VantageScore 4.0 is "Better" for Mortgage.)

VantageScore is the only credit score model development company that makes the results of its model performance assessment public, underscoring the company's commitment to transparency and best-in-class model governance. VantageScore is also the only credit scoring company to offer a suite of free digital tools providing unparalleled insights into consumer credit. These tools include CreditGauge, RiskRatio, Inclusion360 and MarketGain.

Highlights of the VantageScore 2024 model assessment are available for download at https://www.vantagescore.com/lenders/2024-model-assessment/.

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.

SOURCE VantageScore