TransUnion Slashes Credit-Score Price to Challenge FICO’s Market Position
The US mortgage credit-scoring market has long been dominated by Fair Isaac’s Classic FICO, leaving lenders with limited choice. On October 24, 2022, the Federal Housing Finance Agency approved VantageScore 4.0 and FICO 10T for use by Fannie Mae and Freddie Mac. The agency sought to incorporate data such as rent payments into newer models, introduce competition and lower costs for industry participants and borrowers.
TransUnion announced on March 9, 2026, that it would cut the price of a VantageScore 4.0 credit score for each mortgage origination from $4 to $0.99, a reduction of more than 75%. The company estimated that the move could save lenders and consumers more than $900 million, directly challenging FICO’s established position as the FHFA works to modernize the market.
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The history behind this eventTransUnion Unveils Next-Generation UK Consumer Credit Score
TransUnion, one of Britain’s leading credit reference agencies, is revamping its consumer score as borrowing patterns and the lending market evolve. The model goes beyond a single snapshot by using trended data, including changes in account balances and credit-card use, to give consumers a fuller view of their financial behaviour. It is also intended to better represent people with little or no credit history. Lenders will still assess applicants using credit reports alongside their own underwriting criteria.
TransUnion announced the new score on Aug. 26, 2026, expanding its scale to 0–999 from 0–710 and replacing the lowest “Very Poor” category with “Very Low.” An “Excellent” rating will cover 786–999, while the system will offer more than 300 personalised educational messages, insights and tips. The phased rollout through credit-monitoring partners will begin in late September 2026 and run until June 2027. Consumers may temporarily see two scores, but TransUnion said underlying credit-report data and lending decisions will not be affected.
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