Myths and misconceptions about the VantageScore model and credit scores in general have existed and been perpetuated over time. Clearing up these myths is important for the industry as well as for consumers.
Myth: There is little upside to the VantageScore model’s ability to leverage alternative data such as utility, telecom and rent payments.
Reality: The value of rental, telco, and utility data goes far beyond scoring more people. For a majority of consumers who are already scoreable, consideration of this alternative data results in higher scores and thicker credit files. Score level and file thickness are important underwriting criteria for many lenders, including mortgage lenders.
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