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Do vantage scores effect prequel offers?

Bees18
Frequent Contributor

Do vantage scores effect prequel offers?

Just curious on this. Both Cap 1 and chase give vantage scores which are both much lower then real Fico. I've noticed when vangtage scores dip, that prequels go away with both of these, even if real Fico stays the same.

 

Thoughts? 

Message 1 of 8
7 REPLIES 7
BrutalBodyShots
Super Contributor

Re: Do vantage scores effect prequel offers?

Nah, I don't believe that prequals look at Vantage Scores.

Message 2 of 8
oldman87
Valued Contributor

Re: Do vantage scores effect prequel offers?

Agreed with BBS, just because Chase and CapOne provides Vantage scores doesn't mean they use it for credit decisions, me thinks it's simply cheaper to provide users with Vantage than FICO.
Message 3 of 8
Thomas_Thumb
Senior Contributor

Re: Do vantage scores effect prequel offers?


@Bees18 wrote:

Just curious on this. Both Cap 1 and chase give vantage scores which are both much lower then real Fico. I've noticed when vangtage scores dip, that prequels go away with both of these, even if real Fico stays the same.

 

Thoughts? 


Interesting observation. 

 

My belief is majority of solicitations for CCs based on credit scores are associated with VantageScores. That applies to pre-quals as well. That being said a pre-qual is NOT a pre-approval. When it comes to application approvals; Fico credit scores are almost always used as part of decisioning.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 4 of 8
Iceywarm
New Contributor

Re: Do vantage scores effect prequel offers?

No bank I have worked with has ever used vantage model. Most use the FICO Score 8. Credit Karma is a joke in the means that it doesnt provide a clear picture of what happens when you pull the score at a dealer.

 

FICO is the only scoring model many banks use in the USA.

Message 5 of 8
Remedios
Moderator

Re: Do vantage scores effect prequel offers?


@Thomas_Thumb wrote:

@Bees18 wrote:

Just curious on this. Both Cap 1 and chase give vantage scores which are both much lower then real Fico. I've noticed when vangtage scores dip, that prequels go away with both of these, even if real Fico stays the same.

 

Thoughts? 


Interesting observation. 

 

My belief is majority of solicitations for CCs based on credit scores are associated with VantageScores. That applies to pre-quals as well. That being said a pre-qual is NOT a pre-approval. When it comes to application approvals; Fico credit scores are almost always used as part of decisioning.


 

I've recently added a couple of new accounts, and while Fico barely moved, Vantage scores have experienced significant drop. 

After the drop, some of the prequals disappeared, and others are still there, but with worse terms 

Undead Danny Trejo looks strangely like dead Danny Trejo, who looks exactly like alive Danny Trejo. Thanks, Netflix!
Message 6 of 8
Revelate
Moderator Emeritus

Re: Do vantage scores effect prequel offers?


@Remedios wrote:

@Thomas_Thumb wrote:

@Bees18 wrote:

Just curious on this. Both Cap 1 and chase give vantage scores which are both much lower then real Fico. I've noticed when vangtage scores dip, that prequels go away with both of these, even if real Fico stays the same.

 

Thoughts? 


Interesting observation. 

 

My belief is majority of solicitations for CCs based on credit scores are associated with VantageScores. That applies to pre-quals as well. That being said a pre-qual is NOT a pre-approval. When it comes to application approvals; Fico credit scores are almost always used as part of decisioning.


 

I've recently added a couple of new accounts, and while Fico barely moved, Vantage scores have experienced significant drop. 

After the drop, some of the prequals disappeared, and others are still there, but with worse terms 


Unfortunately there's no correlation there: new accounts = fewer prequals regardless of algorithm or anything else used.

 

This has been true before Vantage even made significant inroads to the credit market.

 

I don't quite agree with Thomas: unless Vantage is literally free (it's not to lenders typically) why use it at all if you're trying to predict based on your current dataset what your prequals should be?

 

Ultimately lender expected loan performance and underwriting guidelines are almost always based on FICO as he stated, it makes no sense to use an algorithm that you don't have historical information on for prequals.  Ultimately you're seeking profitable customers, and any new or different scoring algorithm could be positive, but might also produce worse results too and financial services is a very conservative vertical especially when it comes to their profit margins.




        
Message 7 of 8
Thomas_Thumb
Senior Contributor

Re: Do vantage scores effect prequel offers?

In reality pre-approvals candidates are likely provided to Banks and other card issuers by contracted 3rd parties. The 3rd parties have an objective of providing qualified candidates to their customer(s) at as low a cost as possible. VantageScore costs less for 3rd parties to use as a preliminary filter than a Fico algorithm and VS3's ability to assess credit worthiness accurately has been well documented. It also can score a broader demographic than Fico models up to and including Fico 8. Not sure about Fico 9 demographics. 

 

The banks want to reach out to as many qualified candidates as possible. I'm not privy to the details of email and snail mail solicitations but, likely some automated algorithms are involved for generating mailing lists. It is well known that the application/approval process primarily uses Fico scores but, pre-qual is targeted solicitation not an approval process.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 8 of 8
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