RiskRatio Powered By VantageScore™

Quantifying the Relationship between VantageScore Credit Scores and the Risk of Default
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What Is RiskRatio?

A common misunderstanding about credit scores is that the risk associated with any particular score is static. In reality, the risk associated with a score shifts over time due to various factors including macro-economic changes and how consumers handle various types of credit products. VantageScore has launched a first-of-its-kind tool called RiskRatio that provides lenders and those in the capital markets the ability to refresh the relationship between credit scores and default levels (measured by delinquency of 30+, 60+, 90+, 120+ days past due, Charge-Off+Bankruptcy and Bankruptcy over a 6-month, 12-month and 24-month period) at different points in time for originations as well as existing accounts.
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How to Use RiskRatio

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RiskRatio Creates Transparency Related to:

Predictive performance of VantageScore models over time for new originations and existing accounts
The “meaning” of VantageScore credit scores, implied by the observed default rates corresponding to each score band by product
Period-to-period changes in observed default rates for each VantageScore credit score band for credit different products, driven by changes in the macro-environment and lender policies

RiskRatio Measurements

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Consumer Population
A nationally representative random sample of scorable consumers based on consumer credit data from credit bureau files is selected each quarter.
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Account Population
  • Both the Account Management and Originations analyses are conducted at the account level.
  • All eligible accounts from the consumer population are selected within a given quarter.
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Account Management
Account Management represents existing accounts that have been opened before the performance window.
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Originations
Originations represent newly opened accounts in the prior month before the performance window.
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Performance Window
Accounts are tracked over a 6-months, 12-months and 24-month performance window. The tool plots the risk of default where a consumer will become 30+, 60+, 90+, 120+ days past due as well as Charge-Off + Bankruptcy and Bankruptcy over the performance window.
Notice to Users

All data and information provided in and by RiskRatio powered by VantageScore™ is for informational purposes only and should not be relied upon for financial, marketing, legal, technical, or other purpose or advice. Users are responsible for compliance with all applicable laws and regulations when using such data and information, including fair lending laws. Depictions of default rates within a VantageScore credit score band are not a guarantee of any future performance.

Please review these Terms of Use before using or accessing RiskRatio. RiskRatio is provided "as is" and on an "as-available" basis. VantageScore has no obligation to update any of the data and information provided in and by RiskRatio.

The information and data provided in and by RiskRatio (other than third-party information) and their arrangement are copyright ©2024 by VantageScore Solutions, LLC. All rights reserved. Subject to the Terms of Use, RiskRatio and the information contained herein may be used solely for personal, informational, and noncommercial purposes or, if you are a VantageScore-authorized entity, for internal business purposes. Except as otherwise provided, you may not modify, copy, distribute, transmit, post, display, perform, reproduce, publish, license, create derivative works from, transfer, or sell any pages, data, information, software, products, or services obtained from or through RiskRatio unless you have obtained the prior written permission of VantageScore.

Geocoding Sources:

Zip code to Census tract relationship file

Census tract to PUMA relationship file

Code Tabulation Area (ZCTA) Relationship File Record

Zip code CBSA file is used from the HUDUSER Office of Policy development and Research website

2010 Congressional District Relationship Files (Nation-based)