topic Re: VS 5.0? in General Credit Topics

VS 5.0?

GreatLife — Wed, 29 Jul 2026 03:54:30 GMT

Apparently now there's gonna be this..I'm getting credit score weary:

"Tomorrow at 2:30 PM ET, VantageScore leaders are hosting an exclusive session on the next generation of credit risk decisioning:

VantageScore® 5.0 and the New Economics of Credit Risk"

Re: VS 5.0?

BrutalBodyShots — Wed, 29 Jul 2026 05:24:04 GMT

VS5 has been advertised on the VS web site for probably a year now. It's not new in that there's been "talk" of it for at least that long. The problem with it (and with all new models/versions released) is that it's exactly that, talk. Until new versions are adopted and actually used in lending decisions they don't actually matter.

VS4 has been around for nearly a decade now, and you can count on one hand how many lenders actually use it in lending decisions. When Synchrony started using it in ~2018 it seemed like it may become a "thing" but that never actually happened.

I have no reason to believe VS5 will be any different. This is one of those "I'll believe it when I see it" or "we'll cross that bridge when we get to it" situations.

Re: VS 5.0?

FicoMike0 — Wed, 29 Jul 2026 15:13:32 GMT

Reading their sales pitch, I see a lot of phrases like

"expand credit access to unsecured lending products to traditionally underserved borrowers."

They seem to be offering to scrape the bottom of the risk barrel. No talk about flagging high risk better. This would seem to me to appeal to the subprime fee harvesters. If vs5 is adopted mostly by banks that try to profit from high fees and interest from those who are high risk, won't they become identified with high risk?

Re: VS 5.0?

AndySoCal — Thu, 30 Jul 2026 04:33:43 GMT

Here is a link to information on VS 5.0. It might be the replacement for Vantagecscore 3.0 in the long run.

Re: VS 5.0?

Thomas_Thumb — Thu, 30 Jul 2026 15:50:09 GMT

A lot of these new products are geared toward "scoring the unscorable" and adding score boost potential. Typically VS has touted ability to score a greater percentage of the population.

As many know, Fico has rolled BNPL versions of F10 and F10T with a similar objective. I would not classify those new to credit as bottom of the barrel. They are unknown entities that creditors want to solicit and cultivate as potential long term customers.

VS 5.0 has been around for creditor evaluation testing since atleast early 2025.

Re: VS 5.0?

TrapLine — Thu, 30 Jul 2026 22:16:37 GMT

@Thomas_Thumb wrote:
A lot of these new products are geared toward "scoring the unscorable" and adding score boost potential. Typically VS has touted ability to score a greater percentage of the population.

As many know, Fico has rolled BNPL versions of F10 and F10T with a similar objective. I would not classify those new to credit as bottom of the barrel. They are unknown entities that creditors want to solicit and cultivate as potential long term customers.

VS 5.0 has been around for creditor evaluation testing since atleast early 2025.

An added point ... a credit union I belong to swtiched from VS 3 to VS 4. My score was good but under VS 4. Took a hammering. The credit union stated it would allow them to offer more people membership and products ... but, based on my limited view it wacked me down to 813 on VS 4 when I was at 837 on VS 3. Not understanding how this makes a person more scoreable. My record is spotless and good product mix. Life is as a transactor so basically, it is all irrelevant for me but still wonder. Now we talk VS 5 and Fico 10 ... too much!

Re: VS 5.0?

BrutalBodyShots — Thu, 30 Jul 2026 23:19:54 GMT

I don't know that your experience is typical, @TrapLine. From what I've seen, VS4 tends to run higher than VS3 more often than not, at least with higher scores. It's much easier to hit 850 on VS4 than it is on VS3 for whatever reason.

Re: VS 5.0?

Thomas_Thumb — Thu, 30 Jul 2026 23:56:42 GMT

@TrapLine wrote:
@Thomas_Thumb wrote:
A lot of these new products are geared toward "scoring the unscorable" and adding score boost potential.

As many know, Fico has rolled BNPL versions of F10 and F10T with a similar objective. I would not classify those new to credit as bottom of the barrel. They are unknown entities that creditors want to solicit and cultivate as potential long term customers.

An added point ... a credit union I belong to swtiched from VS 3 to VS 4. My score was good but under VS 4. Took a hammering. The credit union stated it would allow them to offer more people membership and products ...

@TrapLine

The score boost potential I was referring to is for those with limited credit by taking payment history of non traditional accounts into consideration.

Win some lose some scorewise when new models are rolled out. If everyone wins it's just score inflation (which, like grade inflation, is real based on macro averages).

Re: VS 5.0?

FicoMike0 — Fri, 31 Jul 2026 00:38:03 GMT

@TrapLine ,

I don't think you're part of the target demographic, lol. If their model reduces the high scores, that leaves room to increase low scores without changing the mean. This makes the score inflation invisible at the bulk level.

@Thomas_Thumb , I get the attraction of adding the unscorable, but what makes one unscorable to vantage? I guess no Credit history at all? I suppose they could add lease and utility payment history, but that's not available from the credit report. They do have products that require the addition of banking data, e.g. Vs4plus, but they don't include that for vs5.

Re: VS 5.0?

TrapLine — Fri, 31 Jul 2026 08:10:42 GMT

@BrutalBodyShots wrote:
I don't know that your experience is typical, @TrapLine. From what I've seen, VS4 tends to run higher than VS3 more often than not, at least with higher scores. It's much easier to hit 850 on VS4 than it is on VS3 for whatever reason.

Bugs me! Follow your comment and at no time since the switch from VS 3 to VS 4 has my score increased. In fact it was just lowered to 813 because a new credit product reported. Frustrating! Ok, you could say not really a factor at my score level but, I have found no betterment with VS 4.

Re: VS 5.0?

BrutalBodyShots — Fri, 31 Jul 2026 14:01:43 GMT

@TrapLine wrote:
Bugs me! Follow your comment and at no time since the switch from VS 3 to VS 4 has my score increased. In fact it was just lowered to 813 because a new credit product reported. Frustrating! Ok, you could say not really a factor at my score level but, I have found no betterment with VS 4.

The new credit slice of the pie is weighted heavier with VS4 relateive to VS3 at 11% verses 5%, so a new account would theoretically impact VS4 more than it would VS3. I'd also look to your revolving balances and see how their "trend" has been over the last 2 years. Since VS3 doesn't use TD like VS4 does, there would be no additional penalty of revolving balances were trending upward on VS3. That's a different story for VS4 however, so it may be worth looking at that aspect of your profile over time.

Re: VS 5.0?

AndySoCal — Fri, 31 Jul 2026 14:03:45 GMT

@TrapLine To be honest I have no idea what my Vantage score 3.0 is because I never look at it. Why it is/ was an educational score to start with . I have heard it is being used by a few lenders for underwriting.

The link below will provide some information on Vantage score 4.0

https://www.vantagescore.com/consumers/blog/the-complete-guide-to-your-vantagescore

Every credit score is calculated differently which is nothing new. Vantage score 4.0 uses trended data Vantage score 3.0 does not. Vantage score 4.0 is a predictive score similar to FICO. What the FICO and Vantage consider predictive is not the same.

My Vantage score 4.0 is 813 which is about 5 to 8 higher than my FICO 08 scores. Hope this helps.

Re: VS 5.0?

AndySoCal — Fri, 31 Jul 2026 14:06:15 GMT

Here is the missing link that I did not include in my previous posthttps://www.vantagescore.com/insights/vantagescore-5/

Re: VS 5.0?

TrapLine — Fri, 31 Jul 2026 18:48:33 GMT

@AndySoCal

Great information. Appreciate your efforts to supplying the education needed.

Re: VS 5.0?

FICOdawg — Sat, 01 Aug 2026 08:44:03 GMT

@AndySoCal wrote:
Here is the missing link that I did not include in my previous posthttps://www.vantagescore.com/insights/vantagescore-5/

I am currently overseas for work. I'd have to load my VPN to even see it.

So many idiot IT people think they are solving a problem that doesn't exist. If I wanted to hack their site could do it in a day.

Re: VS 5.0?

TrapLine — Sat, 01 Aug 2026 12:59:01 GMT

@BrutalBodyShots

Now that you and other posters mentioned "trended data" I will need to keep a focus on this. Usually leave a few dollars on one account and I rotate them. Hmm ... transactor at best but I did not consider that fact.

Need for focus.

Re: VS 5.0?

AndySoCal — Sat, 01 Aug 2026 14:13:27 GMT

It is not the balances that is Important it is if you pay in full each month. The important part of trended data to lenders is do you pay the balance in full each month. Fannie Mae is the one who asked the credit bureaus for what became trended data. See link below

https://singlefamily.fanniemae.com/media/4641/display

Underwriting is all about how much risk the consumer represents. The problem is the balance on the credit report is a snapshot of what account had at the time the credit report was pulled. It does not tell you if the consumer is paying the balence in full or not.

The key fields in trended data are actual payment amount and balance. If the creditor reports actual payment amount that helps. What is not clear is if the creditor does not report the actual payment amount and the effect on the score . If you practice AZE1 this would show the charges made and the balance is zero your good. I would rotate the the except one account reporting the balance. If the actual payment amount is reported creditor can see balance and the balance paid in full or the balance and partial payment.

This is what I do personally. US Bank reports the actual payment amount so I let the balance report which usually is 1 to 2 percent of the credit limit. I pay the lace in full after the statement cuts. I have a Citibank card that does not report the actual payment amount so I pay the balance in full before the statement cuts. I allow some balances to report just so FICO can calculate their credit utilization percentage. The credit utilization percentage is a part of FICO score. The percentage means little or nothing to a lender who looks at the amount owed on an account.

You can find out who reports the actual payment amount or not by getting your credit report from annual credit report.com . The trended data is in the balance history. The trended data is for the most recent 24 months.

Re: VS 5.0?

BrutalBodyShots — Sat, 01 Aug 2026 15:06:52 GMT

@TrapLine even with TD, it's not something you really need to think about. As long as you are paying your statement balances in full monthly, your "trend" isn't going to be upward which is what the algorithm would take issue with. Those that are Transactors will have a relatively flat "trend" over time. It's not something to worry about.

@AndySoCal as I was saying above, I don't think what you're doing (paying before statement generation) is necessary. If your reported balances remain flat over 24 months, which generally they will with an organic spend, 10T isn't going to penalize you any more for elevated balances (raw dollars) than 8 or 9 would. You can have consistent 4-figure to lower 5-figure reported balances in aggregate across 100% cards with a balance and still boast perfect 850 F10T scores.

Re: VS 5.0?

AndySoCal — Sun, 02 Aug 2026 01:49:22 GMT

@BrutalBodyShots @If I allow too many accounts to report with balances I get a dinged by FICO. Score reason Too many accounts with balances. Or some such verbiage. I try to keep less than 50% of my cards reporting balances. This month my Vantage 4.0 score went up 4 points. My second newest card is 1 year old also the inquiry is also on TU where the Vantage scorpullled from. All my cards are at 1% utilization except Walmart One pay is at 2%.

I will wait to see what my Equifax FICO V8 score is when my Myfico tells me I can pull the report.

Ome more thing my Vantage score 3.0 is 824

Re: VS 5.0?

FICOdawg — Sun, 02 Aug 2026 01:47:16 GMT

@TrapLine wrote:

Now that you and other posters mentioned "trended data" I will need to keep a focus on this. Usually leave a few dollars on one account and I rotate them. Hmm ... transactor at best but I did not consider that fact.

Need for focus.

It's getting stupid. All accounts at $0. Bad.
50% or more revolving accounts with balance also bad. Breathing? Also bad for FICO as means you are at risk of spending money which could lead to missed payments. /s

Now carrying ANY balance and it reports will show up in the 24 month trend. So the question is if we hold all variables constant, very low utilisation like <2% does trended data matter? Seems like the trended data sets you up for a lower FICO score unless you have $0 balances. Or is there some ridiculous thing where too low or 0 is bad as it too high?

Should be mandatory that this be made available for consumers to know clear scoring criteria.