Driving Financial Inclusion

VantageScore Scores More Consumers

By providing a fair and accurate credit score to a broader population, VantageScore models create opportunities for lenders to extend credit safely and soundly to consumers who are historically underserved by legacy processes.

All VantageScore credit scoring models score more than conventional credit scoring models by leveraging new data analytics technologies to generate predictive scores for the 3 groups of consumers which are commonly left without a conventional credit score:

Category Conventional Models VantageScore 4.0

Infrequent credit use; consumers who haven't had updates to their credit files in the past 6 months but have earlier updates

❌ Excluded Score Generated
No Trades
Consumers who have no tradelines but do have inquiries, external collections and public records on their file
❌ Excluded Score Generated
Young File
Young to credit; consumers who only have tradelines that are less than 6 months in age
❌ Excluded Score Generated

Distribution of Newly Scoreable Consumers

Many of those consumers that are newly scoreable with VantageScore 4.0 are from underserved groups and a large proportion have scores 620 or higher:

VantageScore Newly Scoreable Consumers

VantageScore Newly Scoreable Consumers with Scores 620+

African American 5.5 million 1.3 million
Hispanic 5.2 million 1.7 million
White 24.2 million 9.2 million
Asian 1.4 million 0.6 million
Native American and Pacific Islander 350,000 100,000

VantageScore research shows that in addition to minorities, there is an increased percentage of newly scoreables in:

  • lower income populations
  • communities with low home ownership rates, and
  • communities with limited access to brick-and-mortar banking services

Breaking the Cycle of Financial Exclusion

Inclusivity PLUS Accuracy

When investigating new ways to score dormant, no trade and young file consumers, VantageScore used cutting-edge machine learning techniques in the development of VantageScore 4.0 to ensure the scores generated for newly scored consumers are as accurate as for conventional consumers.

As a result, the meaning of the score, in terms of the level of risk it implies, is consistent regardless of which group a consumer belongs to.

Delinquency Rate Comparison

Impact of Expanding Scoreable Population Across the U.S.

More Insights & Resources

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