VantageScore 3.0 Outperforms by an Average of 17 percent on a U.S.
Population Representative of Mainstream Lender Portfolios
Among credit scores in the mid-40 percent of the scoring range, a
lender’s primary risk decision zone of 600 – 770, VantageScore 3.0
outperforms benchmark models by an average of 33 percent.
3.0 continues to strongly rank order consumers for all economic
quadrants regardless of the extent to which regions are impacted by
unemployment and home price depreciation.
The VantageScore 3.0 model continues to deliver highly consistent
credit scores across all three credit reporting companies with 90
percent of consumers receiving a credit score within 40 points, a
spread that represents a doubling or halving of probability of default.
1.0 and VantageScore
2.0 also continue to demonstrate a high level of accuracy and
consistency and both models also remain exceptional risk management
STAMFORD, Conn.--(BUSINESS WIRE)--
VantageScore Solutions, LLC, the company behind the VantageScore® credit
scoring model, announced today the results of its annual validation
finding that VantageScore 3.0, as well as earlier VantageScore credit
scoring models, continue to be extremely effective risk management tools
Specifically, VantageScore 3.0 outperformed benchmark models by an
average of 17 percent among consumers in the top 70 percent of the
credit scoring range (600-850), which is a population that is
representative of mainstream lender portfolios.
Among the other results of the annual model validation, VantageScore
Solutions found that:
“We are extremely pleased with the results of our models’ validations.
Today, more than ever, lenders need assurance that the credit score
model they use delivers the highest level of performance possible,” said
Barrett Burns, president and CEO of VantageScore Solutions. “This
information is particularly important from a model governance and
transparency standpoint as regulators are keen to see for themselves how
a lender’s risk models perform.”
Detailed results of the validation are available via a recently
presented webinar available
in the research section of VantageScore Solutions’ website.
About VantageScore Solutions
VantageScore Solutions, LLC (www.vantagescore.com)
is the independently managed company that owns the intellectual property
rights to the VantageScore credit scoring models, including the recently
announced VantageScore 3.0 model which provides up to 25 percent
predictive improvement over earlier models and has the ability to
formulate a score for 30 – 35 million previously unscoreable consumers.
Initially developed by America’s three national credit reporting
companies (CRCs) — Equifax, Experian and TransUnion — VantageScore
Solutions’ highly predictive models use an innovative, patented and
patent-pending tri-bureau scoring methodology that provides lenders and
consumers with more consistent credit scores across all three national
credit reporting companies.
Jeff Richardson, 203-363-2170
Source: VantageScore Solutions, LLC