Validation Study for VantageScore 4.0 Credit Scoring Model Show Increased Predictive Performance and Alignment of Credit Scores

VantageScore 4.0 outperforms across all major lending industries in existing account management and new account originations;
Results Posted Publicly to Aid in Model Governance

STAMFORD, Conn.--()--VantageScore Solutions announces its inaugural validation study for the VantageScore 4.0 model which showcases how the latest model outperforms pre-existing versions of VantageScore and credit reporting company (CRC) scoring models. With the inclusion of trended credit data and the application of machine learning techniques, the 4.0 VantageScore model shows predictive lift that can significantly improve a lender’s business.

Highlights of the 2018 validation study results include:

  • Overall, VantageScore 4.0 provides a predictive lift as compared with earlier VantageScore models and the CRC benchmark model for mainstream consumers in all credit categories.
  • Consistency – 93% of consumers receive credit scores from the three CRSs which fall within a 40-point span (95% for mortgage, 94.8% for bankcard).
  • Universe Expansion – 4.2% to 9.9% performance lift as compared with VantageScore 3.0 in the categories of account management and originations (respectively) amongst newly scored consumers.

As part of its commitment to transparency, VantageScore Solutions annually validates all VantageScore models and shares the results publicly. VantageScore Solutions considers this a best practice, which affords facilitates compliance of users of the model.

This is the first validation study of VantageScore 4.0 since its launch last year. A standard two-year timeframe was used for the analysis (2015-2017).

Trended Credit Data

The VantageScore 4.0 model incorporates first-to-market innovations such as the use of trended credit data, which captures the trajectory of borrower behaviors over time.

In the validation study, trended attributes’ contribution to the score more than doubles in low risk (Prime and Super-Prime) credit tiers compared with high risk (Subprime, Near-Prime and Thin & Young) credit tiers. This provides a better separation in lower risk segments, a highly desired population for many lenders.

Machine Learning

VantageScore 4.0 is also the first and only tri-bureau credit scoring model to leverage machine learning techniques in their development of scorecards for those with dormant credit histories (i.e., those with scoreable trades but with no update to their credit file in last six months).

In the validation study, VantageScore 4.0 outperforms VantageScore 3.0 by nearly 10% for new account originations and 4.2% for existing account management trades.

“Our validation studies are a hallmark of what sets VantageScore apart from other credit scoring models. Every year, we rigorously test our credit scoring models and share the results because that’s how much confidence we have in our models,” said Barrett Burns, CEO and president, VantageScore Solutions. “This year is no different. Through the latest innovations we developed for VantageScore 4.0, we unequivocally proved a more predictive and consistent model can be accomplished without lowering credit risk standards.”

Validation results for VantageScore models are always shared publicly online. This year’s study can be found at

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. Recently introduced VantageScore models score 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 (CRCs: Equifax, Experian, TransUnion).


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