VantageScore Research Examines Model for Statistical Bias Towards Minority and Newly Scoreable Consumers

Date: August 13, 2018

VantageScore Solutions, LLC, developer of the VantageScore® credit scoring model, released a new white paper “Testing Credit Scoring Models for Statistical Bias: Ushering in a New Era of Transparency” which details, through rigorous testing, that the VantageScore 4.0 credit scoring model does not produce any statistical bias towards key population segments including minority groups and consumers who are conventionally unscoreable but scoreable when the VantageScore model is employed.

By using the industry-standard test called the Chi-Square tests, the study shows how the latest VantageScore 4.0 credit scoring model evenly distributes probability of default (a metric that measures a consumer’s likelihood to default over a period of time) across population segments and provides a methodology for best practices for lenders to test their own models.

The VantageScore 4.0 statistical bias research shows that:

  • For both credit card and first mortgage loans, default curves are statistically aligned among ethnic groups at each credit score value among the overall population.
  • For all ethnic groups, there is near alignment of default curves, indicating an unbiased model.
  • For score bands with sufficient sample sizes, there is no discernible difference in the probability of default among consumers who are conventionally scored by credit score models (mainstream consumers) and the approximately 30 million consumers who are not conventionally scored in the credit industry (e.g., universe expansion consumers).
  • More broadly, credit scoring models can and should be publicly scrutinized for bias towards key population segments, including minority groups and those who do not exhibit traditional credit behaviors

“In an age of equitability and accountability, we know it’s important to put the consumer first. This starts with thorough, continuous and public testing on our models – whether it be for statistical bias or performance. By holding ourselves accountable we maintain the confidence of both consumers and lenders,” said Barrett Burns, CEO and president, VantageScore Solutions.

For test results and more details on the “Testing Credit Scoring Models for Statistical Bias: Ushering in a New Era of Transparency” white paper, visit:

About VantageScore Solutions

Credit scores can impact many aspects of your life, everything from whether you are able to get a loan and how much interest you will have to pay to whether you are able to rent an apartment. At VantageScore, we understand the impact credit scores have and we take it seriously.

VantageScore Solutions, LLC ( is the independently managed company that owns the intellectual property rights to the VantageScore credit scoring models and is the leader in scoring innovation. The recently introduced VantageScore 4.0 model scores approximately 30 million consumers who typically are not scored by conventional models – without sacrificing predictiveness.

VantageScore credit scores are used by lenders, landlords, utility companies, telecom companies, and many others to determine creditworthiness. In fact, a recent study found that more than 8.5 billion VantageScore credit scores were used in June 2016-July 2017 by over 2,700 unique users. Of those, over 6 billion scores were used by more than 2,200 lenders of all sizes in their lending processes and over one billion VantageScore credit scores were provided directly to consumers through dozens of websites and lenders who provide their users and customers with their credit scores for free. By using the VantageScore model, these enterprises have access to many more consumers, and in turn, consumers have greater access to mainstream credit.

While there are many credit scoring models in the industry, the “win-win” for VantageScore is its innovative, highly predictive, patent-protected, tri-bureau scoring methodology that provides lenders and consumers with more consistent credit scores across all three national credit reporting companies.