STAMFORD, Conn., November 17, 2015 – VantageScore Solutions, LLC, the company behind the VantageScore® credit scoring model, announced today that more than six billion VantageScore credit scores were used in the 12-month period running from July 1, 2014 through June 30, 2015. This was the finding of an outside study to determine the extent to which the model is used and tested in the consumer credit market.
The six billion VantageScore credit scores used in the 12-month period marks a 100 percent increase over the previous 12-month period, in which three billion VantageScore credit scores were used. Usage in the comparable time period in 2013-14, in turn, represented a six fold increase over the volume for 2012-13.
“We are seeing tremendous growth in many consumer lending categories, and bypassing the six billion scores used marks a major milestone for the VantageScore model,” said Barrett Burns, president and CEO of VantageScore Solutions, LLC. “Lenders are clearly seeing the benefits of greater predictiveness, consistency and the ability to score more people that the VantageScore model provides, and consumers are reaping the benefits of innovation bred by the competition we bring to the credit scoring market.”
The study polled the three national credit reporting companies (CRCs), which sell credit scores to lenders and other users of credit scores, to determine the number of VantageScore credit scores used by their respective customers. The CRCs also reported that seven of the top 10 largest financial institutions in the U.S. are using VantageScore credit scores.
Consumer lenders use credit scores for many different functions including marketing, underwriting, pricing, portfolio management, model building, testing and validation.
This year also marked a significant achievement for VantageScore, as pools of loans originated using borrowers’ VantageScore credit scores were successfully rated by major ratings agencies and sold to secondary market institutional investors without any bias or penalty imposed due to the use of VantageScore. The success of these transactions paves the way for additional growth in use of the VantageScore model within lending categories that rely on securitization to fund new credit issuance.