VantageScore® Credit Score Usage Up 30% in 2022
Market adoption research shows more financial institution and non-financial institution users relying on VantageScore
SAN FRANCISCO, June 1, 2023 /PRNewswire/ -- VantageScore credit score usage grew among financial institutions, including banks, fintechs, and other market participants by 30% in 2022 to over 19 billion credit scores.
Research conducted by Charles River Associates, a leading provider of economic, financial and management consulting services, found year-over-year growth of VantageScore across both financial and non-financial institutions, including a 46% increase in VantageScore credit score usage among banks, fintechs and other financial institutions, from 6 billion credit scores in 2021 to almost 9 billion in 2022. Non-financial institution usage likewise grew, up 18% year-over-year from almost 9 billion to more than 10 billion. Overall, VantageScore credit score use was nearly equally balanced between financial institutions (46%) and non-financial institutions (53%) in 2022.
"Our focus on continually enhancing VantageScore's predictive peformance and ability to drive financial inclusion is without question driving our record growth. More lenders than ever are relying on our scores," said Silvio Tavares, President and CEO of VantageScore. "Last year's decision by the FHFA to mandate VantageScore 4.0 for use in loans funded through Fannie Mae and Freddie Mac will accelerate our momentum and contribute to higher levels of use among mortgage originators. We're excited for our business, but even more importantly, we're proud to be the industry leader in helping more consumers join America's wealth-creation economy."
Additional key findings from the report include:
FINANCIAL INSTITUTION USAGE GROWS ACROSS ALL CATEGORIES: Usage by financial institutions increased by 46% year over year from approximately 6 billion scores used to 8.8 billion scores. Usage by banks and thrifts increased by 13.5% and usage by credit card issuers increased by over 18%.
CONSUMER AND PERSONAL LOAN COMPANIES USE SOARS: Among financial institutions, consumer and personal lenders outpaced all user types, soaring 132% year-over-year to a record more than 3 billion credit score in 2022. This was followed by strong double-digit increases from credit unions (20%), credit card issuers (18%) and banks and thrifts (13%).
SURGE IN TELECOM & UTILITIES USAGE: Among non-financial users, telecoms and utility use of VantageScore credit scores rose 806% from approximately 135 million in 2021 to more than a billion in 2022. The largest category of non-financial institutions overall remained consumer website totals, which grew 10% year-over-year to almost 6 billion VantageScore credit scores used.
To download the full report, visit www.vantagescore.com.
VantageScore consumer credit scoring models combine the need for both financial inclusivity and dependable predictiveness across all scoring ranges. An industry thought leader, the company's most recent models score approximately 94 percent of all adults 18 and older – including 33 million more people than conventional models – without sacrificing safety and soundness. As a result, lenders using VantageScore can extend credit to those who have been historically marginalized, including minority and lower-to-middle income Americans. VantageScore credit scores are used by thousands of lenders, landlords, utility companies, telecom companies, and many others to determine creditworthiness. Additionally, tens of millions of consumers rely on free access to their VantageScore credit scores to monitor their own creditworthiness.
Founded in 2006, VantageScore is owned by America's three National Credit Reporting Agencies (NCRAs) – Equifax, Experian, and TransUnion. Using a patent-protected tri-bureau methodology, VantageScore delivers time-tested, innovative and more consistent credit scoring models across all three NCRAs.
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