Let’s compare VantageScore 4.0 + Classic FICO.

With the FHFA preparing to adopt new credit scoring models, mortgage lenders are taking a closer look at how VantageScore 4.0 compares to Classic FICO Scores—and how these updates could shape your lending decisions going forward.

Although both models aim to predict credit risk, VantageScore 4.0 introduces modern data and analytics that better reflect today’s consumers and lending environments.

What sets VantageScore apart?

• Trended credit data: Unlike Classic FICO, which uses static snapshots, VantageScore 4.0 looks at credit behavior over time—providing a more in-depth picture of how borrowers manage debt.
  
• Expanded scoring population: Through advanced modeling and alternative data (e.g., rent and utility payments), VantageScore 4.0 can score millions more consumers, including those with thin to no credit history.
  
• Improved risk differentiation: Studies show VantageScore 4.0 outperforms Classic FICO in identifying credit risk for mortgages, giving lenders added confidence in underwriting.
  
• Consistent results across bureaus: A unified tri-bureau modeling approach helps deliver more consistent scores, supporting fairer, more predictable lending outcomes

What does this mean for lenders?

• Reach and responsibly serve a broader pool of qualified borrowers.
• Fine-tune risk segmentation with deeper behavioral insight.
• Begin preparation now for model adoption and potential shifts in score distributions.

As the mortgage industry transitions to new models, understanding these distinctions will help you stay competitive and ready for what’s next.

Contact us to get started!