Equifax is rolling out a new pricing strategy and incentives in response to FICO's program announced last week as the dispute between score providers heats up.
The credit reporting agency will offer the competing Vantagescore 4.0 metric from FICO's rival at a price of $4.50 through 2027, a cost it claims is more than 50% below
"Equifax plays an essential role in the financial lives of consumers and the mortgage industry, and we take that responsibility very seriously — particularly in the most challenging mortgage and housing market in 20 years," said Equifax CEO Mark Begor in a press release.
"We are committed to holding the $4.50 score pricing for two years to give lenders the confidence they need to convert to the higher-performing Vantagescore," Begor continued, adding he believed "the best way to drive change in the marketplace, and to lower costs for consumers and our customers, is through open competition."
The move comes in response to last week's announcement from Fair Isaac Corp., provider of FICO credit scores, that unveiled a direct license program to resellers, repricing delivery of its Classic offering to $4.95 per borrower, in addition to fees applied when mortgage loans using the product are closed. The direct licensing program gives resellers and loan originators access to FICO scores, effectively freezing out Equifax and the other credit reporting bureaus, from sales revenue.
Equifax, along with peer credit reporting agencies Experian and Transunion, are co-owners of Vantagescore.
Lenders also would continue to have the option to continue using FICO's per-score pricing of $10 offered through the resellers.
While Fair Isaac's change was initially met with some optimism by the lending industry, supporters of Vantagescore were quick to label the new FICO program as a price increase in disguise that offered little direct savings to lenders or borrowers.
The lead-up to recent pricing changes
Over the summer, FICO and Vantagescore found themselves at the center of a public spat after Federal Housing Finance Agency Director Bill Pulte said he would agree to immediately
FICO Classic has been the sole credit score in use for conventional lending for decades. Vantagescore, in its analysis, said it tracks additional criteria, such as rent and other regular payments to determine what it claims is a more accurate reading of a mortgage borrower's ability to repay.
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LOANTHINK COLUMNS ON CREDIT SCORING:
Responding to Equifax's announcement, FICO also claimed the credit bureau might not be fully revealing charges behind its score delivery.
"FICO introduced the mortgage direct license program to enhance competition in the distribution and pricing of the FICO score. Early bureau response to this program suggests they may charge a processing fee on top of the price of the FICO score, when they in fact do not process the FICO score," a Fair Isaac spokesperson said.
"A bureau processing fee is unwarranted and ultimately increases costs for lenders and borrowers," they added.
Other Equifax incentives on offer to boost adoption
In an effort to encourage greater adoption and recognition of Vantagescore 4.0 within the mortgage industry, Equifax also rolled out additional incentives alongside its new score-price commitment.
- Mortgage, auto, payment card and other consumer finance customers purchasing FICO score products will also be given a Vantagescore 4.0 reading at no additional charge.
- Equifax's Work Number employment and income verification report would also be provided alongside mortgage borrower creditworthiness data at no extra cost.
- Free income and employment indicators will also be available alongside Equifax credit reports for other types of consumer financing customers 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," Begor said.
