Key Takeaways

• VantageScore 4.0 is a tri-bureau credit scoring model used across multiple lending categories, including auto lending. It is not an auto-specific version like FICO Auto Score.
• VantageScore 4.0 uses a 300–850 range and incorporates trended credit data to evaluate changes in a consumer's credit behavior over time.
• The model is designed to score more consumers than conventional credit scoring models, including some consumers with limited traditional credit histories.
• VantageScore 4.0 and FICO Auto Scores can produce different numbers from the same credit file because they use different models and scoring ranges.
• VantageScore has since introduced VantageScore 5.0, which is specifically marketed for auto loan originations, so dealerships may encounter multiple VantageScore generations as well as FICO Auto Scores.

One Model, Not an Auto Score

One important distinction between VantageScore and FICO is how their models are structured.

FICO offers industry-specific models, including FICO Auto Scores designed specifically for auto lending. VantageScore 4.0, by contrast, is a general-purpose tri-bureau model that can be used across different lending categories. It uses a 300–850 scale.

That means there is no separate "VantageScore Auto Score 4.0" for dealerships to identify. If a funding source uses VantageScore 4.0, it is using the same core model that can be applied across other lending categories.

That distinction has practical implications at the F&I desk. A VantageScore 4.0 number should not be compared directly with a FICO Auto Score as though they were interchangeable measures. The models use different methodologies, and FICO Auto Scores are specifically designed around auto lending risk.

What VantageScore 4.0 Looks At

VantageScore 4.0 incorporates several features that distinguish it from earlier scoring models.

• Trended credit data. VantageScore 4.0 uses trended attributes to look at changes in credit behavior over time rather than relying only on a single snapshot of the credit file. VantageScore says this approach contributes to improved predictive performance across credit risk segments.
• Broader file coverage. VantageScore says its 4.0 model scores approximately 94% of U.S. adults age 18 and older, including about 33 million more consumers than conventional models. This can be relevant in auto lending, where dealerships may encounter consumers with limited traditional credit histories.
• Alternative payment information. VantageScore has historically incorporated information such as rental, utility, and telecommunications payments when that information is reported to the credit bureaus. Whether these types of accounts appear on an individual consumer's file depends on whether the information is furnished.

VantageScore 4.0 also excludes medical collections from its scoring model. VantageScore says it removed both paid and unpaid medical collections from its 3.0 and 4.0 models in 2023.

VantageScore 4.0 vs. FICO Auto Score 8

The two models can use the same underlying credit file but apply different scoring methodologies, which is why they can produce different numbers.

Neither score should automatically be treated as the "right" number. They are different models designed for different purposes.

FICO Auto Score 8 is specifically designed for auto lending, while VantageScore 4.0 is a general-purpose model that can be used across lending categories. The lender determines which model it uses as part of its underwriting process.

What This Means at the Desk

VantageScore 4.0 gives F&I teams another way to evaluate a customer's credit profile. Its broader scoreability and use of trended credit data can provide useful context, particularly for customers with limited traditional credit histories or changing credit behavior.

When a dealership works with multiple funding sources, the scoring model becomes part of the picture. One lender may use VantageScore 4.0, while another uses a FICO Auto Score. The scores may differ, but both can provide useful information about the customer's credit profile.

A full-file soft pull can help the F&I team review the information behind the score before submitting an application. This can include:

• Payment history and recent delinquencies
• Current balances and credit utilization
• Collection accounts
• Previous auto credit
• Changes in credit behavior over time

The practical takeaway: use the score as one part of the credit picture, while understanding which model produced it and what information that model is designed to evaluate.

Where VantageScore 5.0 Comes In

VantageScore 4.0 is the company's most widely used lender-facing model and the only one approved for conforming mortgages. For auto lending specifically, VantageScore has since released VantageScore 5.0, which the company describes as optimized for auto loan originations alongside unsecured lending.

An auto lender evaluating VantageScore models today is generally choosing between the two, not between VantageScore and nothing.

Know which model your funding source runs before you submit. Soft Pull Solutions provides full-file soft pull credit reports with tri-bureau data, helping F&I teams review a customer's credit profile before submitting to funding sources, where there is a permissible purpose to obtain the report.

Schedule a demo or call (844) 515-1550.

Frequently Asked Questions

Is there a VantageScore Auto Score 4.0?
No. VantageScore 4.0 is a general-purpose tri-bureau model rather than a separate auto-specific version. VantageScore has since introduced VantageScore 5.0, which is specifically marketed for auto lending.

What range does VantageScore 4.0 use?
VantageScore 4.0 uses a 300–850 range. FICO Auto Scores use a 250–900 range.

Do auto lenders use VantageScore 4.0?
VantageScore 4.0 is used across multiple lending categories, including auto. Individual lenders determine which scoring model they use. VantageScore now also offers VantageScore 5.0 specifically for auto lending.

Why does VantageScore 4.0 score more consumers?
VantageScore says its 4.0 model scores approximately 94% of U.S. adults age 18 and older, including about 33 million more people than conventional models.

Does VantageScore 4.0 use trended data?
Yes. Trended attributes are a key feature of VantageScore 4.0 and allow the model to consider changes in credit behavior over time.

Will VantageScore 4.0 and a FICO Auto Score give the same number?
No. They are different scoring models with different score ranges and methodologies, so the same credit file can produce different scores.

This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney regarding your specific compliance obligations.