How It Works

A credit scoring model is the mathematical formula used to calculate credit scores based on the information contained in consumer credit files. VantageScore is the only tri-bureau scoring model with a proven track record of better consistency, accuracy and performance.

How Does VantageScore Work?

VantageScore has four credit scoring models, all of which leverage patented processes and unique innovative techniques without lowering standards. VantageScore also has the only tri-bureau scoring models with a proven track record of higher consistency, accuracy and performance.

How Are VantageScore Credit Scores Calculated?

VantageScore analyzes data supplied by the three national credit reporting companies (CRCs) – Equifax, Experian and TransUnion – but we don’t stop there. Our scientists incorporate groundbreaking modeling techniques, data and strategies that benefit both lenders and consumers.

  • Trended Credit Data: VantageScore 4.0 is the first and only tri-bureau credit scoring model to incorporate this newly available information. Trended credit data reflects changes in credit behaviors over time, rather than relying (as most other models do) on static, individual credit-history records which reflect only one point-in-time. We leverage trended credit data to gain deeper insight into borrowing and payment patterns; delivering 20 percent originations lift particularly among consumers in the Prime and Superprime credit-score bands.
  • Machine Learning: VantageScore 4.0 uses advanced algorithms in the development of credit scorecards for consumers with dormant credit histories – those who have had no update to their credit file in the last six months. This approach strengthens VantageScore’s ability to accurately score approximately 37 million more people, those who would be unable to obtain credit scores using other commercially available scoring models.
  • National Consumer Assistance Plan (NCAP) Optimization: VantageScore 4.0 is the only tri-bureau credit scoring model developed in anticipation of the CRCs’ intent to remove certain data from consumer credit files through the NCAP agreement. Our model accounts for the removal of public record information from consumer credit files, including tax liens, civil judgements and certain medical collections information.

Our model takes into account the planned removal of that public record information from consumer credit files by using a broader and deeper set of credit file data and more advanced modeling techniques, the VantageScore model allows lenders to accurately assess approximately 37 million more consumers than other commercially available credit scoring models. The main point: our approach to scoring creates opportunities for lenders and credit-worthy borrowers alike.

What Data Does VantageScore Use?

The VantageScore 4.0 model was built using a data set from 2014-2016 to take into account recent credit products and trends in consumer behavior. Development was based on millions of anonymized consumer credit files from all three CRCs.

We consider things like how many credit accounts people have, how much they borrow and how promptly they make required payments. These and other key factors influence a person’s credit report and, ultimately, their VantageScore credit score.

Many different variables and factors go into determining your credit score, and there are a variety of influences that can cause your score to fluctuate. While the numbers aren’t set in stone, there are some concrete factors that contribute to establishing a strong credit foundation.

How many credit accounts do you have? How much have you borrowed? How promptly have you made your required payments? These and other key factors influence your credit report and, ultimately, your credit score.

What Really Counts

Not all factors that are involved will have the same impact on a consumer’s VantageScore credit score. Across a sample of consumers, the following indicates to what degree a factor will impact a consumer’s ultimate credit score:

What Doesn’t Count

Many things don’t factor into the VantageScore model, including race, color, religion, nationality, gender, marital status, age, salary, occupation, employer, employment history, where you live, or even your total assets.

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