VantageScore® Credit Score Usage Surges 42% to 27 Billion Credit Scores in 2023

Record Growth Driven by Accelerated Adoption from Banks and Fintechs of VantageScore's Innovative and Inclusive Credit Score Models

SAN FRANCISCO, April 3, 2024 /PRNewswire/ -- VantageScore today announced that overall usage of its credit scores increased by 42% in 2023 to a record volume of over 27 billion credit scores. This growth is reflected by increased usage by financial institutions and organizations including banks, credit card lenders, fintechs, consumer websites and government entities, among others. More than 3,400 unique banks, lenders and other institutions used VantageScore in 2023, including eight of the top 10 banks. This is according to the results of the 2023 VantageScore^® Market Study Report ("Market Study Report"), a comprehensive, independent third-party analysis conducted by Charles River Associates.

The Market Study Report found a substantial increase in the growth of VantageScore consumer credit scores in 2023 compared to 2022 across both financial and non-financial institutions. Overall, usage by financial institutions grew by 46% year over year to nearly 13 billion consumer credit scores in 2023 compared to approximately 9 billion in 2022. Usage among non-financial institutions grew by 39% overall to just over 14 billion scores in 2023 compared to 10 billion in 2022.

Significant growth in VantageScore credit score usage occurred despite a decline in consumer credit originations in 2023 compared to 2022, according to data from the Federal Reserve Bank of New York (Quarterly Report on Household and Consumer Debt February 2024).

Additional key findings from the Market Study Report include:

172% GROWTH FOR CREDIT CARD LENDERS: In the sub-category of credit card lenders, usage jumped by 172% year over year. Overall, the financial institutions category saw a 46% increase year over year from approximately 8.8 billion scores used in 2022 to 12.9 billion scores used in 2023.

AUTO LENDERS, BANKS AND THRIFTS USAGE GREW SUBSTANTIALLY: The sub-category of auto lenders grew by 34%, while the banks and thrifts category grew 6%.

STRONG EXPANSION IN NON-FINANCIAL CATEGORY DRIVEN BY GOVERNMENT ENTITIES, CONSUMER WEBSITES: Among non-financial institutions, government entities grew by 63%. Growth in the non-financial category was also driven by 147% increase in the "Other" sub-category. Consumer websites usage grew by 17%. Overall, the non-financial category grew by 39% from 10.2 billion credit scores to 14.2 billion credit scores.

"The accelerated growth in the adoption of VantageScore is the result of our relentless focus on predictive performance and innovation," said Silvio Tavares, President and CEO of VantageScore. "With the imminent release of VantageScore historical mortgage data by the FHFA, and the support of many of the largest mortgage industry participants, we will further accelerate our growth in 2024 and continue bringing increasingly predictive consumer credit scoring models to market while unlocking new pathways to support financial inclusion." 

About VantageScore^®
VantageScore is a leading credit-score model development company that generates the most innovative, predictive and inclusive models used in the consumer-credit marketplace. VantageScore is used by eight out of the top ten banks in the U.S. and more than 3,000 fintechs and consumer websites. In 2023 more than 27 billion VantageScore credit scores were used to assess people for credit products like Credit Cards, Auto Loans, Personal Loans and Mortgages, representing a 42% increase over 2022.

VantageScore is an independently managed joint venture company of the three Nationwide Consumer Reporting Agencies (NCRAs)-- Equifax, Experian and TransUnion.

SOURCE VantageScore