Key Takeaways

• VantageScore 4.0 is a tri-bureau consumer credit scoring model released in 2017 by VantageScore Solutions. It scores on a 300–850 scale.
• It was the first tri-bureau model to use trended credit data, reading up to 24 months of balance and payment behavior rather than a single snapshot.
• VantageScore 4.0 excludes all medical collection data from score calculation, regardless of amount owed or age of the collection.
• The model considers rent, utility, and telecom payments when those appear on the credit file, and uses machine learning to score sparse files that conventional models cannot read.
• VantageScore reports the model scores 33 million more people than traditional models.

What Is VantageScore 4.0?

VantageScore 4.0 is a general-purpose consumer credit scoring model built by VantageScore Solutions. Released in 2017, the model runs on the 300–850 scale and estimates the likelihood a consumer defaults on a credit obligation.

Soft Pull Solutions works with lenders running every major scoring model, and VantageScore 4.0 comes up more often now than it did two years ago — partly because of its mortgage eligibility, but mostly because of what it can see that older models cannot.

Three design choices define it: trended data, alternative data, and machine learning applied to thin files.

What VantageScore 4.0 Reads

VantageScore 4.0 has a few clear differentiators from other credit scoring models. 

Trended credit data

Conventional scoring models read the most recently reported balance and credit limit on each account. VantageScore 4.0 reads up to 24 months of that history.

Two borrowers can sit at 40% utilization on application day — one having climbed there from 15%, the other having paid down from 75%. A snapshot model sees one number. VantageScore 4.0 sees which way the borrower is heading.

VantageScore's validation research found the gain from trended attributes concentrated in higher score bands, where separating good risk from very good risk is hardest using static data alone.

Rent, utility, and telecom payments

When these appear on the credit file, VantageScore 4.0 uses them. The constraint is furnishing: most landlords and utility providers do not report to the bureaus, so the data is present on a minority of files. Where it does appear, it can carry a thin-file borrower into scoreable territory.

Machine learning for sparse files

Conventional models require established history to produce a score at all — you need credit to get credit. VantageScore applied machine learning to build scorecards for consumers whose files are too thin for traditional scoring, and reports the model generates scores for 33 million more people than conventional models.

Whether that matters depends on your book. For a lender competing for first-time buyers, younger applicants, or recent immigrants, it is a materially larger pool. For a superprime portfolio, less so.

What VantageScore 4.0 Ignores

This is where the model diverges most sharply from Classic FICO, and it is frequently misunderstood.

Medical collections are excluded entirely. VantageScore announced that neither VantageScore 3.0 nor 4.0 would continue using medical collection data in score calculation, regardless of the amount owed or the age of the collection. The change was implemented by all three credit reporting companies at the end of January 2023. VantageScore estimated that consumers with medical collections on file would see scores rise by as much as 20 points as a result.

This is a modeling decision by VantageScore, not a regulatory requirement, and it is separate from both the bureaus' voluntary removal of medical collections under $500 and the CFPB medical debt rule that a federal court vacated in July 2025.

Paid collections are ignored. VantageScore has excluded paid collections since VantageScore 3.0 launched in 2013.

Tax liens and civil judgments are not counted. VantageScore 3.0 scored them; 4.0 does not, reflecting the bureaus' removal of most public record data from consumer reports beginning in 2017.

VantageScore 4.0 Compared to 3.0 and 5.0

VantageScore now maintains several current models, which means "we use VantageScore" is no longer specific enough to underwrite from.

There is also VantageScore 4plus™, which layers open banking data on top of the 4.0 model for lenders who can obtain consumer-permissioned account data.

The takeaway: 4.0 is the model with the broadest lender use and the only VantageScore model eligible for conforming mortgages. VantageScore 5.0 is newer but targets different products.

Where Lenders Use VantageScore 4.0

Mortgage. Since April 2026, approved lenders may deliver loans to Fannie Mae and Freddie Mac scored with VantageScore 4.0 alongside Classic FICO, and the FHA has moved to accept it. 

Credit cards and personal lending. This is where VantageScore adoption has been deepest and longest-running, particularly among issuers and fintechs originating to thinner files.

Auto. Adoption is growing, though FICO Auto Score variants still dominate most dealer-facing lender programs. F&I teams routinely see both.

Credit unions. VantageScore reports use across thousands of institutions, including nine of the ten largest U.S. banks.

What Adoption Actually Requires

Switching models is not a configuration change, and the most common mistake is treating it as one. Take these steps when adopting VantageScore 4.0: 

Recalibrate, don't relabel. VantageScore 4.0 and Classic FICO calibrate differently. A 620 cutoff built on Classic FICO does not become a 620 cutoff on VantageScore 4.0 — VantageScore's own proposed equivalency mapping pairs a Classic FICO 620 with roughly a 643. Overlays, rate sheets, and tier boundaries all need rebuilding against observed performance, not translation.

Test on your own book. Fannie Mae and Freddie Mac published historical VantageScore 4.0 scores across tens of millions of loans in July 2024. Run that data against your own portfolio composition. That will be worth more than any vendor's national lift figure.

Plan for a multi-model pipeline. Individual loans do not mix models, but your pipeline will contain several. Systems should carry Classic FICO, VantageScore 4.0, and eventually FICO 10T without workarounds. 

Prequalify before the hard inquiry. Model choice does not alter Fair Credit Reporting Act (FCRA) obligations; permissible purpose and documented consent are required before any pull, and adverse action requirements attach when a report drives a denial or worse terms. 

A full file soft pull returns the same tradelines and derogatory detail as a hard inquiry with no impact on the borrower, which matters more when applicants can look meaningfully different under different models.

Run a credit process that handles whichever model your programs require. Soft Pull Solutions delivers tri-bureau soft pull credit reports with a FICO® Score — no SSN required, no score impact, with compliance automation built in. Schedule a demo or call (844) 515-1550.

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

FICO is a registered trademark of Fair Isaac Corporation. VantageScore is a registered trademark of VantageScore Solutions, LLC.

Frequently Asked Questions

What is VantageScore 4.0 in simple terms? A credit scoring model released in 2017 by the joint venture owned by Equifax, Experian, and TransUnion. It scores 300–850, reads up to 24 months of trended data, uses rent and utility payments when reported, and excludes medical collections entirely.

Does VantageScore 4.0 count medical debt? No. Medical collection data was removed from both VantageScore 3.0 and 4.0, implemented at the end of January 2023, regardless of the amount owed or how old the collection is.

What is the difference between VantageScore 3.0 and 4.0? VantageScore 4.0 adds trended data, machine learning for sparse files, and alternative data such as rent and utilities. It also drops tax liens and civil judgments, which 3.0 counts. Only 4.0 is eligible for conforming mortgages.

Is VantageScore 4.0 the same as a FICO Score? No. Different companies, different models. Both use 300–850 in current versions, but the same borrower will score differently on each.

Can I use VantageScore 4.0 for a mortgage? Approved lenders can deliver VantageScore 4.0 loans to Fannie Mae and Freddie Mac. Lenders not yet approved continue on Classic FICO tri-merge.

Why does VantageScore 4.0 score more people? Machine learning lets it build scorecards for thin and sparse files that conventional models cannot score. VantageScore reports this covers 33 million more consumers.