Equifax is cutting VantageScore 4.0 prices to compete with FICO
The shift comes as competition in the credit scoring market increases, driven by the Federal Agency for Housing Financing (FHFA)’s decision to allow this Fannie Mae And Freddie Mac to purchase loans insured with VantageScore 4.0 as an alternative to the Classic FICO Score. VantageScore is jointly owned by the three national credit bureaus: Equifax, TransUnion And Experian.
Last week, FICO unveiled a new performance-based pricing model for its scores distributed through tri-merge resellers. Under the new structure, a royalty fee of $4.95 per score and a funded loan fee of $33 (per borrower, per score) will apply when the loan closes.
Lenders who prefer to stick with the traditional per-score model will continue to pay $10 per score, consistent with previous pricing, FICO said. Lenders can also continue to work directly with the credit bureaus if they wish.
In mortgage lending, the move was seen by some as a step toward more competition, but others warned it could increase credit score costs in the short term. Industry executives said the change effectively redirects some of the credit bureaus’ revenue to FICO by making resellers direct customers of the credit provider. But with the agencies still monitoring vital consumer credit data – including trade information – sources warned they could increase their own fees to make up for lost revenue.
The reaction? “Equifax is supporting U.S. consumers and our mortgage customers with 2026 VantageScore 4.0 pricing that is more than 50% below FICO’s aggressive 2026 $10 pricing,” said Equifax CEO Mark W. Begor in a statement. “We are committed to maintaining the $4.50 score price for two years to give lenders the confidence they need to switch to the better-performing VantageScore.”
Equifax said VantageScore 4.0 provides a more comprehensive view of consumers’ financial profiles by using trending and alternative data such as rent, utility and telecommunications payment history. The company claims the model delivers a 20% increase in production without any additional risk. Both VantageScore and FICO have published studies confirming the superior accuracy of their respective credit models.
“We also continue to expand the value that Equifax’s mortgage credit file provides by including income and employment indicators and alternative data alongside free credit data – to deliver more value to our customers and expand credit access to more U.S. consumers. We are committed to responsibly supporting consumers and the mortgage industry with the most complete insights available,” Begor added.
Equifax said it is the first to offer telecom, pay TV and utility data in addition to tri-merge credit reports for mortgage lenders at no additional cost, as well as an employment status indicator earlier in the qualification process through the Work Number report.
Similar indicator reports for the automotive, credit card and consumer finance sectors are expected to be released in 2026.
