VantageScore 2.0: A new version for a new world
VantageScore 2.0 was launched in October 2010. The impetus for the updated algorithm came from a substantial shift in the credit economy, most notably observed in the real estate industry from 2007 to 2009. Increasing risk levels across consumer credit tiers, combined with a greater diversity of mortgage product types and consumer behavioral responses motivated VantageScore Solutions to evaluate opportunities for increasing the performance of the VantageScore algorithm.
The evaluation process determined that the underlying architecture of the model, i.e. the leveled characteristic design and segmentation structure, had remained robust. However, performance improvement opportunities were identified from enhancing the underlying consumer behavior data set used to configure the algorithm. Consequently, a dataset was designed that reflected consumer behaviors from multiple outcome periods over an extended timeframe, 2006 to 2009, in order to capture both non-recession and recession-period behaviors. Additionally, 45 million credit files were used to create the dataset—15 million from each CRC. This broad and deep dataset provides an expansive sample of diverse consumer behaviors.