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.
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|
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