VantageScore 4.0 credit scoring model validation study shows increased predictive performance and credit score alignment


STAMFORD, Connecticut – (COMMERCIAL THREAD) –VantageScore Solutions announces its inauguration validation study for the VantageScore 4.0 model which shows how the latest model outperforms pre-existing versions of the VantageScore and Credit Reporting Companies (CRC) scoring models. With the inclusion of trending credit data and the application of machine learning techniques, the 4.0 VantageScore model shows a predictive increase that can dramatically improve a lender’s business.

Highlights of the 2018 validation study results include:

  • Overall, VantageScore 4.0 offers a predictive improvement over previous VantageScore models and the CRC benchmark model for mainstream consumers across all credit categories.

  • Consistency – 93% of consumers receive credit scores from all three CRSs that fall within a 40-point range (95% for mortgage, 94.8% for bank card).

  • Universe Expansion – 4.2% to 9.9% performance increase over VantageScore 3.0 in the Account Management and Origination categories (respectively) among Newly Rated Consumers.

As part of its commitment to transparency, VantageScore Solutions validates all VantageScore models annually and shares the results publicly. VantageScore Solutions considers this to be a good practice, which helps facilitate compliance for users of the model.

This is the first validation study for VantageScore 4.0 since its launch last year. A standard two-year timeframe was used for the analysis (2015-2017).

Trend credit data

The VantageScore 4.0 model incorporates early market innovations such as the use of trending credit data, which captures the trajectory of borrower behaviors over time.

In the validation study, the contribution of trend attributes to score more than doubled in low risk credit levels (Prime and Super-Prime) compared to high risk credit levels (Subprime, Near-Prime and Thin & Young). This allows for better segregation into low risk segments, a population much sought after by many lenders.

Machine learning

VantageScore 4.0 is also the first and only tri-bureau credit scoring model to take advantage of machine learning techniques in their development of score cards for those with dormant credit histories (i.e. those with notable transactions but without updating their credit report in the past six months).

In the validation study, VantageScore 4.0 outperforms VantageScore 3.0 by almost 10% for new account creations and 4.2% for existing account management transactions.

“Our validation studies are the hallmark of what sets VantageScore apart from other credit scoring models. Every year, we rigorously test our credit scoring models and share the results, because that’s the trust we place in our models, ”said Barrett Burns, CEO and President of VantageScore Solutions. “This year is no different. With the latest innovations we have developed for VantageScore 4.0, we have unequivocally proven that a more predictive and consistent model can be achieved without lowering credit risk standards.

VantageScore model validation results are always shared publicly online. This year’s study is available at

About VantageScore solutions

Credit scores can have an impact on many aspects of your life, from whether you are able to get a loan and how much interest you will need to pay to whether you are able to. rent an apartment. At VantageScore, we understand the impact of credit scores and we take it seriously.

VantageScore Solutions, LLC ( is the independently managed company that owns the intellectual property rights to the VantageScore credit rating models and is the leader in rating innovation. The recently introduced VantageScore models score around 30 million consumers who are typically not rated by conventional models – without sacrificing predictability.

VantageScore credit scores are used by lenders, homeowners, utility companies, telecommunications companies, and many more to determine creditworthiness. In fact, a recent study found that over 8.5 billion VantageScore credit scores were used between June 2016 and July 2017 by over 2,700 unique users. Of these, over 6 billion ratings have been used by over 2,200 lenders of all sizes in their lending processes and over one billion VantageScore credit scores have been delivered directly to consumers through dozens. of websites and lenders who provide their users and customers with their credit scores for free. By using the VantageScore model, these companies have access to many more consumers and, in turn, consumers have better access to traditional credit.

While there are many credit scoring models in the industry, the “win-win” for VantageScore is its innovative, highly predictive, patent-protected scoring methodology that provides lenders and consumers with credit ratings. more consistent credit in the three credit countries. reporting companies (CRC: Equifax, Experian, TransUnion).

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