More than six billion VantageScore credit scores were used in the 12-month period running from 3Q/14 to 2Q/15. The Company says it is a 100% increase over the previous 12-month period.
The study conducted for VantageScore found usage in the comparable time period in 2013-14 represented a six fold increase over the volume for 2012-13.
The study polled the three national credit reporting companies (CRCs), which sell credit scores to lenders and other users of credit scores, to determine the number of VantageScore credit scores used by their respective customers. The CRCs also reported that seven of the top 10 largest financial institutions in the U.S. are using VantageScore credit scores.
Consumer lenders use credit scores for many different functions including marketing, underwriting, pricing, portfolio management, model building, testing and validation.
This year also marked a significant achievement for VantageScore, as pools of loans originated using borrowers’ VantageScore credit scores were successfully rated by major ratings agencies and sold to secondary market institutional investors without any bias or penalty imposed due to the use of VantageScore. The success of these transactions paves the way for additional growth in use of the VantageScore model within lending categories that rely on securitization to fund new credit issuance.
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