vantagescore 4 0 advancing a mission of fair credit access

VantageScore 4.0: Advancing a mission of fair credit access

Date: June 24, 2020

Dear Colleague:

VantageScore is shaking up the credit scoring industry once again with our latest breakthrough credit scoring model: VantageScore 4.0. Whether you’ve read about it in American Banker or in Automotive News, or in any number of consumer-facing media outlets such as Forbes.com, Credit.com, and MotleyFool.com or you were witness to the official unveiling at the annual CBA LIVE conference in Dallas, we’ve been busy kicking off the announcement with a bang this month.

(For those readers of The Score who use VantageScore credit scores to track your credit health and are not part of the financial services industry, you can learn more about our trend-setting credit scoring model here.)

In the course of reading about VantageScore 4.0, you’ll notice that our statements and presentations have a great deal to say about performance metrics and technical achievements. That’s only fitting. We are known for innovative analytics, after all, and VantageScore 4.0 racks up impressive gains in scoring accuracy. What’s more, the primary users of credit scoring models are lenders and other number crunchers, who measure competitive advantage in percentages and gini coefficients. Because we’ll throw that term around fairly often in the coming months as we discuss our latest model, we decided to include a “Did You Know” article that provides some educational framework for how the performance of credit score models is measured.

But while they’re certainly not lost in our marketing materials for the new model, I’d like to underscore how VantageScore 4.0 advances credit scoring in ways that are harder to quantify: for example, the manner in which VantageScore 4.0 further advances the overarching goals that help define VantageScore Solutions as a company.

VantageScore Solutions is committed to delivering the most accurate credit scores possible, for as many U.S. consumers as possible, without compromising credit standards. We think that lenders want an accurate representation of the largest possible universe of consumers. Furthermore, we firmly believe that assigning credit scores to otherwise unscoreable consumers provides those consumers with a meaningful first step on their path to accessing mainstream credit.

It is in pursuit of these goals—of this mission—that VantageScore’s team of data scientists leveraged innovations such as machine learning and trended credit data into our latest model.

I am extremely proud of that team, led by our SVP Sarah Davies. VantageScore 4.0 represents the culmination of the team’s many months of hard work and innovation. I am even prouder of the way in which their efforts advance the VantageScore mission of fair, accurate, inclusive credit scoring to the benefit of lenders and consumers alike.

Look for more updates here in The Score as VantageScore 4.0 progresses toward commercial release later this year. And you can bet, true to form, that we’ll transparently publish annual validation results as they become available.

All the best,
Barrett Burns