The Future of Credit Scoring

Credit Bureaus + Bank Data =

VantageScore 4plus

New Credit Scoring Model Leverages Consumer Permissioned Open Banking Data to Substantially Boost Predictive Power for Lenders

Today's consumer credit marketplace is increasingly complex; to grow and compete, lenders need a broader view of the consumer's creditworthiness and the ability to protect against fraudulent loans.

Introducing
VantageScore 4plus
, the first of its kind model that leverages both a consumer's credit obligations and cash flow information.

"Using positive cashflow data in underwriting may improve access to credit for populations with historically low credit scores. The CFPB is undertaking rulemaking to help consumers share such data with lenders willing to use it in their underwriting."

- CFPB, July 2023

What is
VantageScore 4plus
?

VantageScore 4^plus features all the benefits of the widely adopted VantageScore 4.0 credit scoring model, PLUS an actionable, real-time adjusted credit score based on attributes that leverage consumer-permissioned bank account information that is FCRA compliant.

Consumer's credit score is too low and gets declined. Consumer is given the option to link bank data for a second look

Consumer chooses option to link bank accounts

Consumer is informed of what data they will be sharing and opts in to share the data

Consumer's score is adjusted and now potentially eligible for the product

Consumer is reassessed based on the VantageScore 4<sup className="pl-[2px] italic leading-none">plus</sup> adjusted score

Consumer applies for a product

Consumer fills out an application

Consumer's credit score is too low and gets declined. Consumer is given the option to link bank data for a second look

Consumer chooses option to link bank accounts

Consumer is informed of what data they will be sharing and opts in to share the data

Consumer provides bank credentials

Consumer's score is adjusted and now potentially eligible for the product

Consumer is reassessed based on the VantageScore 4^plus adjusted score

Enhancing Your Portfolio's Performance

Consumer permissioned bank data more accurately identifies creditworthy consumers that you may be declining and gives you information to confidently approve or decline "edge case" applications.

Addressable Market

Financial Inclusion

With VantageScore 4^plus, consumers can share a more complete view of their financial picture with lenders, increasing their chances of being approved for mainstream loan products like credit cards, personal loans, and auto loans.

Conventionally Scored

Adoption of VantageScore 4.0

Adoption of VantageScore 4^plus

Advanced Predictive Power

The increased predictive power of VantageScore 4^plus creates new opportunities for lenders to reduce the risk of opening new lines of credit while maintaining new lending growth with customers who would not have been approved for credit previously. This includes those who are not current account holders, are recent immigrants, or have avoided using credit products but demonstrate positive cash management behaviors.

Reduce Risk Among Prime Borrowers

With delinquencies increasing highest among prime borrowers, lenders more than ever need the latest advancements in credit scoring to help them accurately assess credit risk. By using bank data, VantageScore 4^plus sees trends in consumer distress months before the credit file which is critical in the current economic uncertainty.

Performance

With increased and sometimes unforeseen financial pressures on consumers (often hidden from the credit files), cash flow data will provide 360° insight into a consumer's creditworthiness.

Provides up to 10% predictive lift on thin files and new to credit over VantageScore® 4.0.

Lender Control

The lender initiates the process and decides when to present VantageScore 4^plus offer to consumers.

FCRA Compliant

VantageScore 4^plus has an FCRA compliant process for the bank account data, which allow the adjusted scores to go up and down, including transparent reason coding for consumer disclosures.

Fraud Prevention

In addition to its advanced predictive performance, the addition of consumer-permissioned back account data to VantageScore 4^plus also adds an extra layer of protection against fraudulent loans.

Real-time Lending

Unlike other consumer permissioned data solutions in the market, which have limited applicability for lending because of how long they take, VantageScore 4^plus provides a credit score adjustment within seconds, helping lenders make real-time lending decisions.

Integration Made Easy

Easy Adoption

VantageScore 4^plus offers lenders the ability to more seamlessly utilize consumer permissioned bank account information in their strategies versus using attributes which requires rebuilding models, credit policies and technology resources.

Compatible and Consistent

VantageScore 4^plus is compatible with all major open banking data APIs. The new credit score can be generated using credit report data from any of the three credit bureaus, Experian, Equifax or Transunion, while delivering a consistent score across all three credit bureaus. VantageScore 4^plus uses the same scoring range as VantageScore 4.0 (300 to 850).

Customized Integration

Lender can customize the integration of our modular components to best fit their systems and reduce friction for consumers.

What We Heard from Industry Thought Leaders

At a time when delinquencies are reaching the highest levels we have seen in recent history, the need for a credit score that gives deeper insights into a member's ability to pay back is critical. Through our testing of VantageScore 4^plus, we've seen its ability to more accurately represent a consumer's creditworthiness, helping Patelco increase its ability to lend to more members during these uncertain economic times.

Yazel Pardo, Head of Credit Risk at Patelco Credit Union

The use of consumer permissioned bank account data is a huge step forward in creating a credit score that is more predictive and reflective of a consumer's full financial profile, helping them build their credit and gain access to mainstream financial products. We applaud VantageScore's innovation and encourage greater usage of VantageScore 4^plus among lenders.

Dara Duguay, CEO of Credit Builders Alliance

We have been using our own customers checking data in our models for as long as I have been here. Being able to incorporate checking data for scoring applicants who do not bank with us would be a big win.

Head of Credit Strategy and Optimization

I have no doubt that incorporating DDA data is the future for credit scoring. This is the way the world is going.

Head of Consumer Lending

We started using non-FCRA CPD data in our origination just over two years ago and it aleady has had a big impact on our top line growth... If you can provide an FCRA compliant scoring adjustment, we will sign up now.

VP, Credit Risk and Fraud

Pilot
VantageScore 4plus
today, and get a head start on your competition

First-moving adopters including banks, credit unions and fintechs are already piloting VantageScore 4^plus. As the financial services industry "leans in" to Open Banking concepts, consumer permissioned data to drive credit decisions will soon become standardized.

Lenders and fintechs can work directly with VantageScore to pilot and validate the predictive performance and game-changing financial inclusion impact of VantageScore 4^plus. Through a process that can be customized to lenders' underwriting processes, lenders can gain a clear understanding of how many more consumers they could approve using this enhanced credit-scoring model without adjusting their own credit policies and credit score cut-offs.

Have more questions about VantageScore 4^plus?