VantageScore Enhances Its Free Suite Of Tools For Lenders

VantageScore enhanced the predictive digital tool in its free suite of tools for lenders.

RiskRatio Powered by VantageScore is designed to help lenders and financial institutions understand and assess default risk across different credit score ranges.

The company says the latest updates offer users “even more predictive power.”

“Eight of the top ten U.S. lending institutions use VantageScore’s innovative digital tools to make faster, more informed decisions,” said Susan Fahy, Executive Vice President and Chief Digital Officer at VantageScore. 

“With RiskRatio’s new features, lenders can gain unparalleled insight into consumer credit trends, enabling them to act swiftly and strategically in response.” 

The enhancements include expanded delinquency categories for more precise identification of credit risk trends; segmentation of products (covering First Mortgages, HELOCs, and HELOANs), showing borrower behavior across product types; and 6-month and 12-month performance windows.

RiskRatio is part of VantageScore’s suite of free-to-access digital tools for lenders, including monthly analyses of consumer credit health and geographic breakdowns.

VantageScore is the fastest-growing credit-scoring company in the U.S. More than 3,400 institutions use VantageScore credit scores to provide consumer credit products. It was created in 2006 by the three major credit bureaus: Experian, Equifax, and TransUnion.

VantageScore 4.0 was recently adopted by Fannie Mae and Freddie Mac.

Alternate credit scoring models have gained traction recently as the industry pushes back against rising costs. FICO recently increased its wholesale royalty from $3.50 to $4.95 per score for mortgage originations.