VANTAGESCORE® RELEASES RESULTS OF ITS ANNUAL MODEL PERFORMANCE ASSESSMENT

As Economic Uncertainty Continues, Lenders Need Assurances that Models Remain Relevant and Predictive

SAN FRANCISCO, May 24, 2023 /PRNewswire/ -- VantageScore today released the results of its annual model performance assessment. In keeping with its mission to promote transparency and aid in model governance, VantageScore publishes the results of these assessments annually so that lenders and policy makers have confidence that the credit scores used to make loan decisions are predictive, consistent, and accurate.

VantageScore's annual report takes on greater importance as some consumer segments begin to demonstrate increasingly risky behaviors amid economic uncertainty.

Highlights from the performance assessment include:

• VANTAGESCORE 4.0 PERFORMS BETTER: VantageScore 4.0 outperforms earlier versions as well as other commonly used generic credit scoring models in the market, within originations and account management, as well as across all major product categories, including bankcard, auto, mortgage and personal installment loans.

• TRENDED DATA IMPROVES PERFORMANCE: VantageScore 4.0's use of trended attributes delivers significant predictive performance improvements within both the lower scoring and higher scoring credit originations segments.

• SCORE CONSISTENCY RETAINED: Aided by the patented and proprietary VantageScore attribute leveling process, a high level of score consistency across the CRCs is maintained. VantageScore 4.0 continues to provide the most consistent scores of all the VantageScore models.

"In a post-pandemic lending environment that is increasingly uncertain, it is critical to continually monitor the predictive performance of credit score models," said Silvio Tavares, President & CEO of VantageScore. "We are pleased with the results of our annual model performance assessment, and we believe it is a best practice to share the results of our performance testing with market participants."

Highlights of our model performance assessment are available for download at https://www.vantagescore.com/lenders/2023-model-assessment/.

About VantageScore
VantageScore develops consumer credit scoring models that combine the need for both financial inclusivity and dependable predictiveness across all scoring ranges. Known as an industry thought leader, the company's most recent models score approximately 94 percent of all adults 18 and older – including 33 million more people than conventional models – without sacrificing safety and soundness. As a result, lenders using VantageScore can extend credit to those who have been historically marginalized, including minority and lower-to-middle income Americans. VantageScore credit scores are used by thousands of lenders, landlords, utility companies, telecom companies, and many others to determine creditworthiness. Additionally, tens of millions of consumers rely on free access to their VantageScore credit scores to monitor their own creditworthiness.

VantageScore was launched in 2006 and is owned by America's three NCRAs – Equifax, Experian, and TransUnion. Using a patent-protected tri-bureau methodology, VantageScore delivers time-tested, innovative, and more consistent credit scoring models across all three NCRAs.

SOURCE VantageScore