Skip to main content

What is the VantageScore® 4.0 credit model?

minute read

    The VantageScore® 4.0 credit scoring model is the latest variation of VantageScore's models and was released in 2017. Like other models, such as the VantageScore 3.0 model, the 4.0 version tracks credit score ranges from 300 – 850. However, the 4.0 model comes with its own nuances and advances, including those involving machine learning.

    In this article, we will discuss:

    • The differences between VantageScore 3.0 and 4.0 models
    • Who uses the VantageScore 4.0 model
    • The average credit score based on the 4.0 model
    • Monitoring your credit score

    Differences between VantageScore 3.0 and 4.0 models

    You may be more familiar with the VantageScore 3.0 model, as this one is more widely used than the newer 4.0 model. For example, when you enroll in Chase Credit Journey®, you receive your Experian™ credit report and a free credit score, which uses the VantageScore 3.0 model.

    The 4.0 model is a newer version that includes “trend data,” which is data that gets collected about different patterns of consumers’ behavior. For example, how a person pays back their debt over a period of time. This data helps to analyze different patterns of financial behavior that can be useful for lenders, creditors and others.

    How the VantageScore 3.0 and 4.0 credit scores differ

    There are slight variations in the factors used by the 3.0 and 4.0 models to determine credit score. Below we'll break them down these factors by model when it comes to calculating your credit score

    • Payment history
      • 3.0 = 40%,
      • 4.0 = 41%
    • Age/credit mix
      • 3.0 = 21%,
      • 4.0 = 20%
    • Credit utilization
      • 3.0 = 20%,
      • 4.0 = 20%
    • New credit
      • 3.0 = 5%,
      • 4.0 =11%
    • Balances
      • 3.0 = 11%,
      • 4.0 = 6%
    • Available credit
      • 3.0 = 3%,
      • 4.0 = 2%

    Who uses the VantageScore 4.0 model?

    Lenders sometimes use more than just one scoring model to help them assess a person’s creditworthiness. Many lenders use the 4.0 model in addition to other models, like the 3.0 model or FICO® score, to get a wider picture of the consumer. However, the consumer generally sees just one score on their credit report, oftentimes a VantageScore 3.0 or a FICO score.

    Additionally, the following industries may also use the 4.0 model:

    • Auto dealerships
    • Personal loan lenders/fintech loan lenders
    • Banking institutions
    • Credit card issuers

    Why use the VantageScore 4.0 model?

    This model has some unique characteristics compared to other models, which can help capture a wider scope of a person’s financial behavior. For example, the model leverages machine learning to help examine credit behavior over a duration of time. 

    This additional data and technology can help calculate credit scores automatically, providing lenders with the information they need to make important decisions. It may also help increase accessibility to lines of credit for consumers. 

    What is the average score based on the new model?

    According to VantageScore, the average 4.0 score was 697 as of May 2022.  According to Equifax®, the average VantageScore 3.0 in 2021 was 698, close to the 4.0 average.

    Monitoring your credit score 

    Because the VantageScore 4.0 model is a newer model, it’s likely that your current credit score is based on either the VantageScore 3.0 model or the FICO model. Many banks and other institutions can be slow to fully adopt newer models, but it’s possible that the 4.0 model is being used to help determine your eligibility for lines of credit, annual percentage rates (APRs) and more. 

    If you’re curious about your credit score and the factors affecting it, you can track it without worrying about impacting your score when you use Credit Journey®. The score you’ll receive is based on the 3.0 model, which is more commonly used by lenders and financial institutions.

    What to read next