What You Need to Know About VantageScore 4

Your credit score is a key component of your financial health, so it’s helpful to know how it is created. The three major credit bureaus — Equifax, Experian, and TransUnion — use FICO and VantageScore as their scoring models. The latest version of VantageScore is VantageScore 4 or 4.0. Let’s break down that scoring model.

What is VantageScore 4.0?

VantageScore 4.0 was first rolled out in 2017. The scoring model was created as a way to help score people who have zero or relatively little credit history. Consumers who don’t have enough information to score with a FICO score can benefit from VantageScore 4.

Who Uses VantageScore 4?

VantageScore 4 is widely used in the following industries: credit card, automotive, banking, and personal loans.

How is VantageScore 4.0 Different Than Other Models?

The biggest difference between VantageScore 4 and other scoring models is that it considers your credit utilization over time. It factors in up to two years of utilization, while other models look at the most recent utilization. This is known as “trended data.”

What is the Difference Between VantageScore 4 and VantageScore 3?

The main update to VantageScore 4 from VantageScore 3 is that 4 places more emphasis on new credit. 4 also places less emphasis on the whole credit picture with trended data as opposed to just a single snapshot in time.