- New Model Trained on Post-Pandemic Data and Uses All-New Patent-Pending Attributes
- Enhanced Predictive Power Offers Up To 9% Lift on Unsecured Loan Originations for Thin Credit File Consumers
- Superior Credit Score Model Stability Reduces Consumer Credit Score Volatility
SAN FRANCISCO , April 17, 2025 -- National credit scoring leader VantageScore today announced the launch of its newest tri-bureau credit score model, VantageScore 5.0. Building on VantageScore's history of credit score innovation, VantageScore 5.0 utilizes the company's all-new, patent-pending attributes to offer enhanced insights on consumer creditworthiness. VantageScore 5.0 provides an additional predictive lift of up to 9% on unsecured loans, including credit cards, retail cards and personal loans for thin credit file consumers compared to VantageScore 3.0. VantageScore 5.0 was trained, in part, on consumer loan data from after the pandemic when consumer credit behaviors changed significantly.
"The credit landscape is evolving rapidly. VantageScore 5.0 is at the forefront of a new generation of VantageScore credit scoring models built on today's challenges and tomorrow's opportunities, providing lenders and fintechs with more granular borrower insights, enhanced predictive power, and stronger risk segmentation," said Dr. Andrada Pacheco, EVP and Chief Data Scientist at VantageScore.
The model is built on VantageScore's proprietary patent-pending attributes, which capture real-time credit behaviors and historical trends to improve predictive performance, particularly for consumers with new or thin credit histories.
"The quantitative results from VantageScore 5.0 back-testing are impressive," said Yazel Pardo, Vice President and Head of Credit Risk at Patelco Credit Union. "The substantial rise in predictive lift for those with thin, inactive or young credit files helps lenders like Patelco to better identify credit risk and support the responsible expansion of access to credit to a wider population."
Key features of VantageScore 5.0 include:
- Enhanced Predictive Power: VantageScore 5.0 provides a significant lift in originations of up to 9% for consumers with thin files. This offers lenders a reliable way to expand their pool of creditworthy applicants without incurring additional risk.
- Optimized for Unsecured Loan Origination: VantageScore 5.0 is optimized for unsecured lending including credit cards, retail cards and personal loans, and provides a significant overall predictive lift for these credit products.
- Superior Model Stability: VantageScore 5.0 uses an innovative and simplified credit score model design that minimizes credit score migration, maintaining a more consistent credit score within an ever-changing credit environment. VantageScore 5.0 also reduces variability across credit bureau files, ensuring 96% of scores remain within a 40-point range across all three bureaus.
For more information on VantageScore's credit scoring models or to pilot VantageScore 5.0, please visit https://www.vantagescore.com/insights/vantagescore-5.
About VantageScore®
VantageScore is the fastest-growing credit scoring company in the U.S., and is known for the industry's most innovative, predictive, and inclusive credit score models. In 2023, usage of VantageScore increased by 42% to more than 27 billion credit scores. More than 3,400 institutions, including 8 of the top 10 banks, use VantageScore credit scores to provide consumer credit products including credit cards, auto loans, personal loans and mortgages. The VantageScore 4.0 credit scoring model scores 33 million more people than traditional models. With the FHFA mandating the use of VantageScore 4.0 for Fannie Mae and Freddie Mac guaranteed mortgages, the company is also ushering in a new era for mortgage lending and helping to close the homeownership gap.
VantageScore is an independently managed joint venture company of the three Nationwide Consumer Reporting Agencies (NCRAs) – Equifax, Experian, and TransUnion.
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