TransUnion is lowering VantageScore 4.0 prices for mortgage lenders

The move follows similar announcements from TransUnion’s competitors.

Experian said this week that it will make VantageScore 4.0 available at no cost indefinitely, promising that if it ever starts charging, prices will remain at least 50% lower than FICO.

A week earlier, Equifax said it will offer VantageScore 4.0 for $4.50 per score through 2027, while it will also offer it for free through 2026 to customers who purchase FICO scores during that period.

TransUnion said it remains the only agency offering 30 months of trending credit data. It plans to integrate alternative data assets – including rental, utility and short-term loan information – into its mortgage credit reports. The company will also roll out a free VantageScore 4.0 simulator to help consumers understand and improve their scores.

According to TransUnion, the new multi-year pricing model provides lenders with predictability and stability “in an industry burdened by steep annual FICO price increases.”

Competition in the credit scoring market is becoming increasingly fierce. It was sparked by the Federal Agency for Housing Financing‘s decision to allow 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 Equifax, TransUnion and Experian.

FICO recently introduced a performance-based pricing model for scores distributed through tri-merge resellers. The structure includes a royalty fee of $4.95 per score and a “funded loan fee” of $33 – per borrower, per score – when a loan closes.

Lenders who choose the traditional per-score model will pay $10 per score, or they can continue to purchase directly from the credit bureaus.