Equifax Keeps $1 VantageScore Price Through 2027

Equifax announced on Tuesday that it will maintain its $1 pricing for the VantageScore 4.0 credit scoring model through the end of 2027, as detailed by CEO Mark Begor during an investor earnings call. This initiative, initially launched in March, also includes offering free VantageScore 4.0 credit scores to customers in the mortgage, automotive, card, and consumer finance sectors who purchase FICO scores.

The Federal Housing Finance Agency (FHFA) began utilizing VantageScore 4.0 in April with over 20 mortgage lenders, following a signal of future adoption from the U.S. Department of Housing and Urban Development (HUD). Begor stated that while most of these mortgage lenders have started using VantageScore, an additional 1,200 mortgage lenders are now pulling the free VantageScore alongside a paid FICO score from Equifax.

In the second quarter, VantageScore saw approximately 2.2 million mortgage transactions, nearly tripling from the first quarter, with the majority originating from the group of 1,200 lenders. Equifax also reported that about 100 mortgage lenders are now exclusively using VantageScore at the $1 price point for mortgage originations. These lenders are predominantly smaller originators not backed by government-sponsored enterprises, as well as those focusing on Home Equity Lines of Credit (HELOCs) and home equity loans.

Begor highlighted that Equifax generates no profit from FICO mortgage scores, which constitute about 50% of its U.S. Information Solutions mortgage revenue and approximately 7% of Equifax's total revenue. In contrast, VantageScore is jointly owned by Equifax, Experian, and TransUnion. Equifax is promoting its $1 VantageScore offering as a cost-saving measure for both originators and consumers, aiming to accelerate its adoption in the market.