Financial Inclusion
Data Analytics Innovation Drives Financial Inclusion
By providing a fair and accurate credit score to a broader population, VantageScore creates opportunities for lenders to extend credit safely and soundly to consumers historically underserved by legacy processes.
All VantageScore credit-scoring models score more than conventional credit-scoring models by using new data analytics technologies to generate predictive scores for three groups of consumers commonly left without a conventional credit score.
Category | Conventional Models | VantageScore 4.0 |
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Dormant Infrequent credit use; consumers who haven't had updates to their credit files in the past 6 months but have earlier updates. |
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No Credit Accounts Consumers who have no credit accounts (also called tradelines), but do have external collections and public records on their file. |
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Young File Consumers with a short credit history (also called young to credit); consumers who only have credit accounts (tradelines) that are less than 6 months old. |
Many consumers who are newly scoreable with VantageScore 4.0 are from underserved groups, and a large proportion have scores 620 or higher.
Newly Scorable Consumers
VantageScore research shows that in addition to minorities, there is an increased percentage of newly scoreables in:
Newly Scorable | Scores 620+ | |
---|---|---|
Total | 33 Million | 13 Million |
Black and Hispanic | 9.5 Million | 3.1 Million |
Asian | 1.3 Million | <1 Million |
White | 21.6 Million | 9.2 Million |
Native American and Pacific Islander | 290,000 | 100,000 |
- Lower income populations
- Communities with low home-ownership rates
- Communities with limited access to brick-and-mortar banking services
Inclusivity PLUS Accuracy
Inclusion Toolkit
Access to credit is key to achieving financial wellness and ensuring that only the most accurate and inclusive credit scores are used in loan decisions is critical.
To more deeply understand how lenders that use VantageScore credit scores drive sustainable access to credit for more creditworthy borrowers, below is a financial inclusion toolkit containing research, interactive tools, fast facts, performance information and video content.