One-Third of Consumers Would Switch Lenders Over Legacy Credit Scores
Event summary
- 33% of consumers would seek a new mortgage lender if their current one uses legacy credit-scoring models.
- 52% of consumers would be more interested in homeownership if lenders considered rent and utility payments.
- 76% of Gen Z consumers say a lender’s use of broader data influences their choice.
- Experian offers VantageScore 4.0 for mortgage originations at $0.99 to accelerate industry adoption.
The big picture
Experian’s research highlights a growing consumer preference for modern credit-scoring models that include rent and utility payments, particularly among Gen Z. This aligns with FHFA’s push for updated mortgage underwriting standards, creating pressure on lenders to adopt broader data sources. The shift could expand homeownership access but depends on lenders’ willingness to overhaul legacy systems.
What we're watching
- Adoption Pace
- How quickly lenders transition to modern scoring models like VantageScore 4.0.
- Regulatory Alignment
- Whether FHFA’s push for modern scoring models accelerates industry-wide changes.
- Competitive Differentiation
- How lenders leverage expanded data to attract younger, credit-thin borrowers.
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