• Pilot Findings Highlight the Predictive Power of Consumer-Permissioned Alternative Data
• VantageScore 4^plus™ Cash Flow Insights Help Safely Extend Credit to “Thin-File” Borrowers

VantageScore successfully completed two independent pilot programs using VantageScore 4^plus™, the newest VantageScore credit score model leveraging the power of industry-leading VantageScore 4^plus™ alternative open banking data. Pilots conducted with Patelco Credit Union and Michigan State University Federal Credit Union (MSUFCU) each demonstrated significant quantitative improvements in credit risk prediction, as well as a significant expansion in access to credit for underserved consumers.

These results show that open banking data, when used responsibly and in combination with credit file data, can dramatically improve both risk management and financial inclusion,” said Dr. Andrada Pacheco, Executive Vice President and Chief Data Scientist at VantageScore. “What excites us most is the real-world impact-helping lenders say yes more often to credit-worthy consumers.

VantageScore 4^plus™, launched in 2024, builds on the industry-leading performance of the VantageScore models by adding bank transaction data to deliver a real-time, FCRA-compliant credit score. It offers enhanced risk separation among populations with limited credit histories, according to analyses performed by VantageScore. Because it is compatible with all three major credit bureaus and aggregator APIs, lenders can easily adopt it without overhauling credit policies.

Michigan State University Federal Credit Union saw strong results in VantageScore 4^plus™ testing, including:

• 33% of subprime moved to higher credit tiers
• 41% of near prime members moved to higher credit tiers

Our mission is to support members through every stage of their financial journey,” said Blake Johnson, Vice President of Lending at MSUFCU. “With so many of our members being recent graduates and consumers that are new to credit, the results of our backtest show that with cash flow insights driven by VantageScore 4^plus™ we can reduce losses and extend credit with more confidence to these hard-to-underwrite members.

In testing its portfolio, Patelco Credit Union found that VantageScore 4^plus™ delivered:

• 12% of subprime and 15% of near prime members moved to higher credit tiers
• 4.8% improvement in predictive power over VantageScore 3.0 in originations

Both credit unions also emphasized the model’s stability.

“At a time when many consumers are facing higher interest rates and financial pressure, VantageScore 4^plus™ has the potential to provide a more complete view of member financial behavior,” said Yazel Pardo, Head of Credit Risk at Patelco Credit Union. “Based on the results, there is a clear actionable opportunity to expand access to credit with greater confidence, especially among new-to-credit and underserved members, without increasing risk.

To learn more about VantageScore 4^plus™ or to begin a pilot, lenders can visit https://vs4plus.vantagescore.com.