VantageScore® 4.0: Now Live

VantageScore is a credit scoring model developed jointly by the three major credit bureaus: Equifax, Experian, and TransUnion. It was officially launched in 2017 to provide lenders with a more robust view of consumer credit behavior. Like base FICO Scores, it uses a standard credit score range of 300 to 850.

• Trended and Alternative Data: VantageScore 4.0 incorporates “trended credit data,” which tracks how consumers manage balances over time (e.g., whether they pay their balance in full or only make minimum payments). It also uniquely incorporates alternative credit data, such as rent and utility payments, to better assess creditworthiness. Classic FICO models, historically used for mortgages, rely more on a snapshot of credit utilization at a specific point in time.
• Treatment of Collections: VantageScore 4.0 ignores paid collection accounts and removes all medical collections from its scoring calculation entirely, regardless of whether they are paid or unpaid. Older FICO models used in the mortgage industry have historically penalized consumers for paid collections and unpaid medical debt, though newer FICO versions (like FICO 10T) have started to reduce the impact of these items.
• Scorability: VantageScore is designed to score “thin-file” consumers who have limited traditional credit histories.

No. GSE guidelines require that the same Credit Score model must be used for all borrowers on a single mortgage.

No, FICO Score 10T is not currently eligible for delivery to Fannie Mae or Freddie Mac.

At AD Mortgage, VantageScore is available for Conventional loans only (DU and LPA).