Equifax cuts VantageScore price to compete with FICO direct model

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Leon Neal

Amid government pressure to lower the mortgage closing costs, Equifax (NYSE:EFX [https://seekingalpha.com/symbol/EFX]) said it will price VantageScore 4.0 mortgage [https://seekingalpha.com/pr/20257965-equifax-expands-mortgage-credit-offerings-to-promote-credit-scoring-competition-supporting] credit scores at $4.50 for two years, ratcheting up its competition with Fair Isaac's (NYSE:FICO [https://seekingalpha.com/symbol/FICO]) FICO score.

Last week, FICO (NYSE:FICO [https://seekingalpha.com/symbol/FICO]) announced a new licensing model [https://seekingalpha.com/news/4501119-fico-launches-cost-cutting-direct-license-program-for-mortgage-lending]that allows tri-merge resellers (firms that combine data from Equifax, TransUnion (TRU [https://seekingalpha.com/symbol/TRU]), and Experian (OTCQX:EXPGF [https://seekingalpha.com/symbol/EXPGF]) (EXPGY)) to calculate and distribute FICO Scores directly without relying on the three credit bureaus. The new FICO program was expected to cut the average per-score fee by up to 50%, with a new $4.95 score fee.

The fee for the traditional FICO model entails a $10 per-score fee.

FICO (NYSE:FICO [https://seekingalpha.com/symbol/FICO]) stock dropped 2.5%, and Equifax (NYSE:EFX [https://seekingalpha.com/symbol/EFX]) stock was little changed in Tuesday after-hours trading.

Equifax (NYSE:EFX [https://seekingalpha.com/symbol/EFX]) said it will also offer free VantageScore 4.0 credit scores to all Equifax customers in mortgage, automotive, card and consumer finance who purchase FICO scores for the remainder of 2025 and throughout 2026.

"By offering VantageScore 4.0 credit scores to all Equifax customers who purchase FICO scores through the end of 2026, we are making VantageScore more easily accessible for lenders of all types to evaluate," said Equifax CEO Mark W. Begor. "More data drives better decisions, and VantageScore 4.0 provides a fuller view of consumers' financial profiles."

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