Equifax has slashed the price of its VantageScore 4.0 credit scores to $4.50 for the next two years (more than 50% below FICO’s rates) as the two credit scoring giants escalate their competition for mortgage market dominance.
The announcement follows FICO’s recent decision to sell scores directly to mortgage resellers, cutting out intermediaries in a move it said would increase transparency and reduce costs for lenders and brokers.
In a prepared statement, FICO said this will bring greater price transparency and increased cost savings for mortgage lenders, mortgage brokers, and other industry participants.
The initial Equifax response was to issue the following statement: “FICO’s doubling of their FICO score pricing for mortgage in 2026 and the announcement of their Mortgage Direct License Program is another example of FICO flexing its monopoly pricing power. The company’s announcement was inaccurately positioned as a cost savings, when it will actually end up costing consumers and the mortgage industry much more. FICO has more than doubled its previously disclosed pricing for 2026, raising prices from $4.95 to $10. This monopoly-like 2x price increase has the potential to raise mortgage score costs across the industry by approximately $100 million.”
Equifax further countered the FICO move today by offering free VantageScore 4.0 credit scores through the end of 2026 to all the company’s mortgage, automotive, card, and consumer finance customers who purchase FICO scores.
Additionally, Equifax will provide the Work Number Report Indicator, while additional alternative data will be delivered alongside the Equifax mortgage credit report free of charge. Free income and employment indicators will be available alongside Equifax credit reports for automotive, card, and consumer finance in 2026.
Industry Impact
The pricing battle comes amid major shifts in the credit scoring landscape. In July, the Federal Housing Finance Agency (FHFA) approved the use of both FICO and VantageScore models for mortgage lending, ending FICO’s 30-year dominance in the sector.
“Equifax plays an essential role in the financial lives of consumers and lenders, and we take that responsibility seriously—especially in the most challenging mortgage market in 20 years,” said Equifax CEO Mark W. Begor. “By offering VantageScore 4.0 to all customers who purchase FICO scores through 2026, we’re making alternative scoring more accessible and affordable.”
VantageScore 4.0 uses trended data and alternative data (including rental, utilities, and telecommunications payment histories) to help with the assessment of creditworthiness.
“With VantageScore 4.0, we finally have a credit model that reflects the full picture of a borrower’s financial behavior, not just traditional revolving credit,” said Jeremy Davis, Southern Bancorp President of Mortgage. “I strongly support the pricing discounts and combining of ancillary offerings at no additional cost, these will provide cost savings to our most vulnerable communities. However, we cannot ignore that a long-term pricing reduction plan should be the priority.”
Davis added, “This could represent a paradigm shift for underserved communities. Many low-to-moderate income families who consistently pay rent, utilities, and other bills on time have historically faced barriers to homeownership because their limited credit history forced them into manual underwriting programs, which come with higher rates and costly mortgage insurance. With VantageScore 4.0, these responsible payments are automatically recognized, allowing these borrowers to qualify for standard fixed-rate mortgages with better pricing, lower insurance costs, and more affordable terms.
