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, CA (June 1, 2023) — 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 performance 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.
About VantageScore
VantageScore is a leading credit-score model development company that generates the most inclusive, innovative, and predictive models used in the consumer-credit marketplace. VantageScore is used by 8 out of the top ten banks in the U.S. and more than 3,000 fintechs and consumer websites. In 2023 over 19 billion VantageScore credit scores were used to assess people for credit products like auto loans, personal loans and mortgages, representing a 30% increase over 2022.
VantageScore is an independently managed joint venture company of the three Nationwide Credit Reporting Agencies (NCRAs)-- Equifax, Experian, and TransUnion.
