VantageScore White Paper Explains VantageScore 4.0’s Use of Machine Learning

Date: December 07, 2017

Stamford, Conn. December 7, 2017 – VantageScore Solutions, LLC, developer of the VantageScore credit score model, released a new white paper that showcases the benefits of using machine learning to score more people with greater accuracy.

The white paper, “Scoring Credit Invisibles: Using machine learning techniques to score consumers with sparse credit histories,” provides a detailed description of the development process and integration of machine learning into the new VantageScore 4.0 credit score model, which is now commercially available.

VantageScore 4.0 is the first and only tri-bureau credit scoring model to incorporate machine-learning techniques to develop multi-dimensional attributes for consumers with limited credit histories, which drove significant performance increases among “dormant” consumers (those with no update to their credit file in six months). Data analysts then aligned and fully integrated these redesigned attributes and scorecards into a traditional scoring algorithm with a focus on compliance concerns.

Using machine learning-techniques has led to a performance lift of as much as 16.6% for bank card originations and 12.5% on auto originations of consumers with dormant credit files. This innovation further bridges the gap between access to mainstream credit and those consumers without deep credit histories who have traditionally been frozen out of lenders’ automated underwriting systems.

“Part of our mission at VantageScore is to enhance our models so they stay fresh and relevant to the current economy and the state of consumers today,” said Sarah Davies, senior vice president, research, analytics and product development, VantageScore Solutions. “There remain millions of so-called credit invisibles in the U.S. today; many of whom are creditworthy. We have a responsibility to update our models so they can accurately score more people without lowering credit risk standards and provide lenders with models that they can plug into processes with relative ease.”

Machine learning has been a part of the technology world for decades, but VantageScore 4.0 is the first and only tri-bureau credit scoring model to utilize its power. Setting it apart from conventional models that typically contain model attributes which incorporate only one or two dimensions of behavioral credit data (e.g., number of inquiries, mortgage balance, etc.), VantageScore 4.0 takes into account multiple behavioral dimensions while using innovative modeling techniques to score more consumers.

The whitepaper also discusses how model developers can enable FCRA-compliant model attributes that result from the use of machine learning.

To read the “Scoring Credit Invisibles: Using machine learning techniques to score consumers with sparse credit histories” 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.

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. Recently introduced VantageScore models score 30-35 million consumers* who typically are not scored by conventional models without relaxing standards. VantageScore credit scores are used by lenders, landlords, utility companies, telecom companies, and many others to determine your creditworthiness. 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. VantageScore is also the model tens of millions of consumers use to monitor their credit behaviors through dozens of websites and lenders who provide their users and customers with their credit scores for free. More than eight billion VantageScore credit scores were used in the 12-month period from July 2015-June 2016 by over 2,400 lenders and other industry participants, including 20 of the top 25 financial institutions – an increase of nearly 40% over the previous 12-month period.

The company is celebrating its 11th anniversary in 2017.

* Reduction in public records and collection trade lines in consumers files will cause the number of consumers who would be newly scoreable using the VantageScore credit scoring model to decline.