VS4 scoring criteria

I still find it somewhat crazy that VS4 suggests that Payment History is ranked "3" at best in terms of impact on score. I personally feel payment history is the top indicator/factor when it comes to predicting default, but I guess those that developed VS4 feel otherwise.

I also found that crazy, but they are trying to look at things from the perspective of is the person living beyond their means rather than looking at history as the major predictive factor, I suppose and with the incorporation of trended data who knows the result?

I'm of the belief that the best indicator of the future is the past. If someone has past late payments, they're more likely to have future late payments. Late payments can lead to defaults etc. I don't know, I just find it crazy that payment history for Fico models lands #1, but it lands #3 for VS4. I mean, credit mix and experience mattering more? Come on.

Your first sentence says it all. And I am in total agreement. Nevertheless, different models, different opinions, I guess, but I guess that’s why fico is still number one right? Lol.

True, just seems like a drastic change in moving from VS3 to VS4. It's like they incorporated trended data which is a good thing, but seemingly made some other things worse.

I was on a site recently, can't remember which but I believe it was a free CMS that provides VS3 and it said that lenders use VS in something like 5.4% of lending decisions. It was the first time I had ever seen VS quantified, were we always hear about Fico and "...90% of lending decisions."

I find it strange that my number 1 negative reason code for VS4 is lack of real estate loans... I guess my student loan, 2 open auto loans, and various closed installment accounts aren't satisfactory for VS. Oh well. haha

aj2121 wrote: ↑Mon Jul 19, 2021 4:04 pm I find it strange that my number 1 negative reason code for VS4 is lack of real estate loans... I guess my student loan, 2 open auto loans, and various closed installment accounts aren't satisfactory for VS. Oh well. haha

What is your VS4 score? Also, what is your utilization at currently that is generating your #2 reason code? Based on an attempt to quantify the value of the #2 code, we can try to infer what sort of hit you're taking for the lack of a real estate loan. It sounds like it could be somewhat significant for VS4.

BrutalBodyShots wrote: ↑Tue Jul 20, 2021 3:59 am

aj2121 wrote: ↑Mon Jul 19, 2021 4:04 pm I find it strange that my number 1 negative reason code for VS4 is lack of real estate loans... I guess my student loan, 2 open auto loans, and various closed installment accounts aren't satisfactory for VS. Oh well. haha

What is your VS4 score? Also, what is your utilization at currently that is generating your #2 reason code? Based on an attempt to quantify the value of the #2 code, we can try to infer what sort of hit you're taking for the lack of a real estate loan. It sounds like it could be somewhat significant for VS4.

Most recent VS4 is 711. Overall utilization was 28% when Synchrony pulled the most recent VS4. But the wording of "Ideally, the balance on any revolving account should be 30% or less of the total credit limit on that account." makes me think the #2 reason code considers individual account utilization as well. If that is the case, I currently have 2 accounts at >80% utilization and I feel those are likely costing me several points.

I would think a couple of accounts at 80%+ would be hurting your utilization pretty good. I mean on the Fico models no doubt it does, so I'd imagine with VS4 it would be similar. I do think it's strange that lack of a real estate loan would be more meaningful than your utilization opportunities though. You'd think applying for new credit (new account in last year) would be more of a hit, but maybe that's not how VS4 rolls.

Off topic, but I also wonder if there are any trended data related negative reason statements for VS4.

BrutalBodyShots wrote: ↑Tue Jul 20, 2021 11:41 am I would think a couple of accounts at 80%+ would be hurting your utilization pretty good. I mean on the Fico models no doubt it does, so I'd imagine with VS4 it would be similar. I do think it's strange that lack of a real estate loan would be more meaningful than your utilization opportunities though. You'd think applying for new credit (new account in last year) would be more of a hit, but maybe that's not how VS4 rolls. Off topic, but I also wonder if there are any trended data related negative reason statements for VS4.

It for sure hurts on the FICO. I finally hit 750 and then had some unexpected expenses that I needed to use a BT offer for and I am back down to 721. Much better position than I was in a year ago though! True, I have opened 2 new revolving accounts (March and April) and a new installment loan (May) and my VS has been march 705, april 700, may 713, june 703, and july 711. And I only have those two negative reason codes and neither even mentions opening a new account... Trended data is for sure the most interesting aspect of VS4 but it is going to be so hard to decipher when the non-trended data is already so confusing.

Seems like your score held up pretty well with the addition of multiple new accounts and likely an associated inquiry or two. VS seems to not care about new accounts as much as Fico.

Don’t worry we will do our best to help figure it out!

I wonder why VS4 hasn't gained much traction yet and that VS3 is still way more common.

I guess it's the same thing with F9 vs F8, although I feel F9 is a bit more common relative to F8 compared to the VS models.

BrutalBodyShots wrote: ↑Tue Jul 20, 2021 5:00 pm Seems like your score held up pretty well with the addition of multiple new accounts and likely an associated inquiry or two. VS seems to not care about new accounts as much as Fico.

Looking back on the HPs, I have 4 HPs and 3 of them are on TU which is the source for the Synchrony VS4 score. So that is 3 new HPs and 3 new accounts with minimal fluctuation in score (balances were definitely changing and contributing to the small changes, I am almost positive utilization reported at over 30% when the data was pulled for June). 2 of the HPs were for an auto loan, but I am not sure if VS has a de-duplication feature?

I would imagine they do. Still very resilient score with 2 scoreable HPs and new accounts!