Experian responds to FICO, offers VantageScore 4.0 for free

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Amidst a credit score war, Experian has thrown the latest punch.

The data and technology company will now offer VantageScore 4.0, a credit scoring model, for free to its mortgage clients in the United States.

“Experian is dedicated to fostering a more competitive mortgage landscape, creating a safer and sounder market, and expanding access to homeownership for a wider range of consumers,” Experian CEO Brian Cassin said in a press release Tuesday. “Making VantageScore 4.0 more easily accessible and widely available for the mortgage market accelerates the adoption of VantageScore 4.0 among mortgage lenders.”

Access to the model will give lenders time to evaluate the benefits of VantageScore, a joint venture of Experian, Equifax and TransUnion, during the underwriting process.

If Experian does charge for VantageScore 4.0, it will be offered for at least a 50% discount compared to what Fair Isaac Corp. charges for its FICO score, the company said. Equifax announced last week that it will offer the scores for $4.50 through the end of 2027.

FICO rolled out a new program model earlier this month that let mortgage resellers bypass the three major credit bureaus and receive scores directly to avoid additional markup fees. The new program has a base price of $4.95, and a $33 per borrower per score charge will apply if a FICO-scored loan is closed and avoids reissuance charges lenders previously paid.

Experian’s response is one of many since Federal Housing Finance Agency Director Bill Pulte announced in July that Fannie Mae and Freddie Mac will allow lenders to use VantageScore 4.0 when submitting loans to them, the only other metric outside of FICO’s. The decision was made to increase competition in the credit score ecosystem, Pulte wrote on X.

Pulte’s action was criticized by some, who said it would help the three credit bureaus monopolize credit scoring and hurt homebuyers and homeowners. But most of the industry adjusted, as the U.S. Mortgage Insurers welcomed the announcement and Fannie plans to update disclosure files in November to allow for sellers and servicers to opt for VantageScore 4.0.

The public feud between advocates of the two metrics has since flared up, with the American Enterprise Institute claiming that VantageScore’s methodology is flawed and VantageScore delivering a detailed response. 

The move to offer VantageScore 4.0 for free marks another step in Experian’s support of Pulte’s incentive to make the credit scoring industry more competitive and mortgages more affordable, the company said.

“True to our culture of innovation, this latest move provides lenders with choice and flexibility, while advancing fair and affordable access to financial resources for more consumers,” Cassin said. “We remain committed to helping deliver real progress in credit score competition and driving more financial opportunity for Americans.”



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