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
Infrequent credit use; consumers who haven't had updates to their credit files in the past 6 months but have earlier updates.
No Credit Accounts
Consumers who have no credit accounts (also called tradelines), but do have external collections and public records on their file.
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

Newly Scorable Scores 620+
Total 37 Million 13.03 Million
Black and Hispanic 10.73 Million 3.06 Million
Asian / Pacific Islander 1.43 Million <1 Million
White 24.24 Million 9.21 Million
Native American 305,274 89,287

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
  • Communities with limited access to brick-and-mortar banking services

Inclusivity PLUS Accuracy

To score dormant, no trade and young file consumers, VantageScore uses cutting-edge machine learning techniques. The model used, VantageScore 4.0, ensures 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.
Impact of Expanding Scoreable Population Across the U.S.