VantageScore 4.0 is here!
Lenders are quickly adopting this as an alternative to the long-standing FICO scoring model. Why is this important? Because Vantage Scores are often higher than FICO scores, which could translate to qualifying for a loan.
The Vantage Scoring system is often what you see in credit services offered by your bank or other resources, such as Credit Karma. The Vantage scoring model uses a broader set of data when available that may include rent payment history, utilities, cell phone bills, and even bank account cash-flow information (in some implementations).
Real-World Impact: The changes are still in the early phases and the impact will be determined as more data is obtained. Initially, it was believed that there would be a positive impact to pricing for a client by using the Vantage Score. This is not currently the case as their is a separate tiered pricing model similar to FICO. So a 730 FICO score would be priced similar to a 750 Vantage. If a price bump comes at 740 in FICO, you would need a 760 in Vantage.
