VantageScore® Launches All-New 5.0 Credit Score Model, Delivering Industry-Leading Predictive Performance Based on Post-Pandemic Consumer Data and Novel Attributes

• Only National Tri-Bureau Credit Score Trained on Post-Pandemic Data Uses All-New Patent-Pending Attributes
• Enhanced Predictive Power Offers Up to 9% Lift on Originations of Auto Loans and Unsecured Loans for Consumers
• Superior Credit Score Model Stability Reduces Consumer Credit Score Volatility

SAN FRANCISCO--(BUSINESS WIRE)--VantageScore today announced the availability of its newest tri-bureau credit score model, VantageScore 5.0. Building on VantageScore’s history of credit score innovation, VantageScore 5.0 utilizes the company’s all-new, patent-pending attributes to offer enhanced insights on consumer creditworthiness. VantageScore 5.0 provides an additional predictive lift of up to 9% on unsecured loans, including credit cards, retail cards and personal loans, as well as auto loans, compared to VantageScore 3.0. Unlike FICO Classic and FICO 10T, VantageScore 5.0 is the only available nationwide tri-bureau credit score trained on post-pandemic consumer loan data, during which consumer credit behavior changed significantly.

"The credit landscape has evolved rapidly. VantageScore 5.0 is at the forefront of a new generation of VantageScore credit scoring models built on today’s challenges and tomorrow’s opportunities, providing lenders and fintechs with more granular, data-driven borrower insights, enhanced predictive power and stronger risk segmentation,” said Dr. Andrada Pacheco, EVP and Chief Data Scientist at VantageScore.

The breadth and depth of VantageScore's consumer data are key differentiators compared to outdated credit scoring models such as FICO Classic and FICO 10T. Optimized for unsecured lending and auto loans, VantageScore 5.0 is built on proprietary, patent-pending GAIN™ attributes that capture real-time credit behavior and historical trends to improve predictive performance across the entire range of consumer credit tiers. Early lender adoption is already confirming the model's ability to unlock more precise, data-driven lending decisions.

"Innovation is central to how Patelco serves our members. Our evaluation of VantageScore 5.0 demonstrated meaningful improvements in predictive performance among underserved populations, helping us identify additional opportunities to responsibly extend credit,” said Yazel Pardo, VP, Head of Credit Risk at Patelco Credit Union. “Bringing VantageScore 5.0 into production is another step in our shared commitment to using modern analytics to better serve our members and communities.”

Key features of VantageScore 5.0 include:

• Enhanced Predictive Power: VantageScore 5.0 provides a significant lift in originations of up to 9%. This offers lenders a reliable way to expand their pool of creditworthy applicants without incurring additional risk.
• Optimized for Unsecured Loan and Auto Loan Origination: VantageScore 5.0 is optimized for unsecured lending, including credit cards, retail cards and personal loans, as well as auto loans, and provides a significant overall predictive lift for these credit products.
• Superior Model Stability: VantageScore 5.0 uses an innovative and simplified credit score model design that minimizes credit score migration, maintaining a more consistent credit score within an ever-changing credit environment. VantageScore 5.0 also reduces variability across credit bureau files, ensuring 96% of scores remain within a 40-point range across all three bureaus.

VantageScore is available now from all three national credit reporting companies: Equifax, TransUnion and Experian. For more information on VantageScore’s credit scoring models or to pilot VantageScore 5.0, please visit www.vantagescore.com/lenders.

About VantageScore®

VantageScore is the fastest-growing credit scoring company in the U.S., and is known for the industry’s most innovative, predictive and inclusive credit score models. In 2024, usage of VantageScore increased by 55% to hit 42 billion credit scores. More than 3,700 institutions, including nine of the top 10 U.S. banks, use VantageScore credit scores and digital tools to provide consumer credit products or generate greater insights into consumer behavior. The VantageScore 4.0 credit scoring model scores 33 million more people than traditional models. With the FHFA allowing the immediate use of VantageScore 4.0 for Fannie Mae and Freddie Mac guaranteed mortgages, the company is also ushering in a new era for mortgage lending.

VantageScore is an independent joint venture company owned by Equifax, Experian and TransUnion.