STAMFORD, Conn. — VantageScore Solutions, the company behind the VantageScore credit scoring model, announced the unveiling of its newly constructed credit scoring model, VantageScore 3.0. The new model provides up to 25 percent predictive improvement over earlier models, according to company officials, and has the ability to formulate a score for 27 to 30 million previously consumers unable to be scored — a group larger than the population of Texas.
The scale used in the new model is 300 to 850, a change from earlier VantageScore models. Officials said the new scale will help facilitate easier model implementation for lenders. If also offers more familiarity for consumers.
"The VantageScore 3.0 model is both a new model, and new path forward for VantageScore Solutions and the credit scoring industry,” said Barrett Burns, president and CEO of VantageScore Solutions. “The model was built with a lender's implementation and risk management needs in mind, in conjunction with a deeper understanding for what information consumers need to become better managers of their own credit.”
As another measure to aid both lender implementation and consumer understanding, VantageScore Solutions reduced the number of reason codes to less than 80, and simplified the reason code statements within the VantageScore 3.0 model to aid consumer understanding. Additionally, with the launch of the VantageScore 3.0 model, VantageScore Solutions unveiled a new logo, website and branding initiative.
"Today's competitive lending environment dictates that lenders need access to as many creditworthy consumers as possible within their target universe, demanding the highest level of predictive performance from the credit scoring models they use,” Burns said. “The VantageScore 3.0 model facilitates this, and provides risk managers a level of predictiveness that will allow them to confidently extend credit to tens of millions of consumers that were previously invisible to them so that those consumers have a greater chance to access mainstream credit, which is one of our principle goals."