Thinking about buying a home but unsure if your credit score will help or hurt you? With the recent FHFA announcement, VantageScore 4.0 is now approved for use by Fannie Mae and Freddie Mac-meaning more mortgage lenders will soon rely on it to evaluate home loan applications. Whether you have limited credit history, strong rental payment habits, or are seeking no-down-payment mortgage options, understanding how VantageScore 4.0 works can help you get mortgage-ready faster. Explore our top 10 consumer questions to learn how this change could benefit you.

1. What is VantageScore 4.0, and what’s the big deal with the recent announcement that lenders can use VantageScore 4.0 credit scores?

VantageScore 4.0 is a modern credit scoring model that uses advanced data science to evaluate creditworthiness. The Federal Housing Finance Agency (FHFA), announced that mortgage giants Fannie Mae and Freddie Mac will adopt VantageScore 4.0 for evaluating mortgage applications. This shift aims to expand access to credit, reduce costs, and make the mortgage process fairer for more Americans.

2. How can VantageScore 4.0 help me buy a house?

VantageScore 4.0 includes newer data and analytics that can recognize responsible financial behaviors beyond traditional credit, such as rental payments or low credit usage. It’s especially helpful for consumers with thin credit files or non-traditional credit histories. Even if you’re exploring no-down-payment mortgage options-like a VA loan-having a strong VantageScore 4.0 could improve your eligibility or terms when these models are in use.

3. Will mortgage lenders actually use my VantageScore?

Yes, and increasingly so. With the FHFA requiring Fannie Mae and Freddie Mac to accept VantageScore 4.0, most mainstream mortgage lenders will need to start using VantageScore 4.0, including mortgage lenders who offer military families and veterans products like VA loans.

4. Which banks, credit unions, or lenders use VantageScore for mortgages today?

Over 3,700 banks, fintechs and other institutions use VantageScore credit scores every day to assess consumer creditworthiness. Last year, 42 billion VantageScore credit scores were used representing a 55% yearly increase. All top 10 banks use VantageScore credit scores or digital tools in one or more lines of business.

5. How do I know what my VantageScore is?

You can check your VantageScore for free through many financial websites and apps-including Credit Karma, NerdWallet, and some bank platforms. Unlike some credit scores, VantageScore is often accessible without harming your credit.

6. I always pay rent on time-can that help my score?

Yes! VantageScore 4.0 can factor in rental payment history if it’s reported to the credit bureaus. Ask your landlord or property manager if they use a rent-reporting service. You can also enroll in services like Esusu, Boom, or RentTrack to have your rent payments reported and included in your credit profile.

7. How can I get my landlord to report my rent to help my credit score?

Encourage your landlord to sign up with rent-reporting platforms that send payment data to major credit bureaus. These services can be initiated by landlords or tenants, and some allow tenants to self-report with verification. Once rent data is reported, VantageScore 4.0 can use it to help build or improve your credit.

8. What was wrong with the credit scores that mortgage companies have been required to use?

Traditional credit scoring models approved for use in mortgage underwriting-many of which are based on decades-old methodologies-often fail to reflect modern consumer credit behaviors and rely on limited, outdated data. These models may overlook millions of consumers, particularly those with thin credit files, non-traditional financial patterns, or no credit history. In addition, by mandating the exclusive use of FICO scores, the system effectively created a government-sponsored monopoly that limited competition and innovation in the credit scoring market. In contrast, VantageScore 4.0 uses more recent credit data, trended credit behaviors, and inclusive modeling techniques to produce scores for more people and improve fairness, predictiveness, and consistency across bureaus. This helps lenders identify qualified borrowers that legacy models might miss-especially in underserved or diverse populations.

9. What makes VantageScore 4.0 different from other credit scores?

It uses trended credit data-looking at patterns over time instead of one snapshot-and includes alternative data like rent and utility payments (when reported). It’s also designed to be more fair and inclusive, with strong performance in identifying creditworthy individuals across demographics.

10. Is VantageScore safe and trustworthy?

Yes. VantageScore is used by over 3,000 lenders and is backed by all three major credit bureaus (Equifax, Experian, TransUnion). It complies with fair lending laws and has been rigorously validated by the FHFA. It’s a reliable tool to help lenders make smart decisions-and help you access fairer credit.