Study Shows Using Two Credit Scores Instead of a Single Credit Score for Lending Decisions Improves Predictive Performance

New White Paper Discusses the Need for a “Second Opinion” to Verify Initial Consumer Credit Risk Assessments

STAMFORD, Conn.--()--VantageScore Solutions, LLC, developer of the VantageScore® credit scoring model, released the first of two new white papers that demonstrate superior predictive performance when using one generic credit score to verify an initial risk assessment made by another credit score. “The Predictive Value of Credit Score Consistency” white paper also demonstrates that verifying VantageScore 3.0 credit scores specifically at two separate nationwide Credit Reporting Companies (CRCs) yields a higher percentage (75 percent) of score alignment than using two proprietary credit scoring models because the VantageScore model yields more consistent credit scores.

The white paper examines the practice of verification – the alignment of risk assessments from two credit scoring models – to ensure consistency and accuracy in the assessment of a population, which ultimately can result in minimizing default rates for lenders. In this study, VantageScore data scientists sought to answer two questions when validating the need for verification:

1) Was there predictive performance improvement (i.e., Gini1 improvement) when verifying any credit score with another, different brand of credit score from a separate CRC?

2) How often do credit scores “verify” risk assessment?

Through testing, the study found that verified credit scores (regardless of the brand or version) deliver Gini improvements of at least two points higher on the verified population than if only one credit score is used on that same population. Conversely, the population with credit scores that are not verified by the credit score (i.e., those with conflicting verification evaluations) shows a drop in Gini performance of four to five points, meaning risk assessment for these consumers is less reliable. Thus, consumers with unverified credit scores should be managed with greater scrutiny than consumers with verified credit scores.

Additionally, the study uncovered that when two VantageScore 3.0 scores (from two independent CRCs) were used, the credit scores of 75 percent of the consumers in the population were verified. However, when the verification was conducted using two proprietary CRC credit scores from two independent CRCs, just 30 percent of the consumers’ credit scores were verified. The improved verification performance using VantageScore 3.0 is a function of the consistent algorithm used across the three CRCs that is a patented signature feature of all VantageScore models.

“Consistency, accuracy and predictiveness are at the forefront of everything we do at VantageScore Solutions, which is why we have a natural desire to explore how we can further help our end users achieve more profitable outcomes and improve how consumers handle their credit health,” said Sarah Davies, senior vice president, research, analytics and product management, VantageScore Solutions. “The verification approach can further limit default risk and have a positive impact on a lender’s bottom line.”

A second, related white paper will soon be available that examines the upside of a verification process for those consumers with limited credit histories.

While VantageScore 3.0 was used for this study, results would be similar if other versions of VantageScore were used, including VantageScore 4.0.

For more details on “The Predictive Value of Credit Score Consistency” 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 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.

* 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.

1 A Gini coefficient compares the distribution of defaulting consumers with the distribution of non-defaulting consumers across the credit score model’s range. A coefficient value of 100 indicates that the model has successfully assigned all defaulting consumers to the lowest score possible and all non-defaulting consumers to the highest score possible. A Gini coefficient of 45 or greater is considered a good result by industry standards.


VantageScore Solutions
Jeff Richardson, 203-363-2170
Vice President and Group Head – Marketing & Communications


VantageScore Solutions
Jeff Richardson, 203-363-2170
Vice President and Group Head – Marketing & Communications