Equifax Takes on Fair Isaac with Price Cuts, Accuses FICO of Monopoly Practices

Equifax has responded to Fair Isaac's decision to offer credit score data directly to mortgage providers by slashing prices and offering free scores. Equifax CEO Mark Begor accused Fair Isaac of being a monopoly in the mortgage industry and said the best way to drive change is through open competition. Equifax shares rose nearly 2% while Fair Isaac shares dropped 9%.

Equifax has countered Fair Isaac's (FICO) decision to offer credit score data directly to mortgage providers by slashing prices and offering free scores. Equifax CEO Mark Begor accused FICO of being a monopoly in the mortgage industry and said the best way to drive change is through open competition. Equifax shares rose nearly 2% while FICO shares dropped 9%.

In response to FICO's new pricing model, which includes charges of $10 per score or $4.95 plus $33 for each completed loan, Equifax announced that it would make the VantageScore 4.0 available for $4.50 a score over the next two years. Additionally, Equifax will provide VantageScore for free to all Equifax customers who purchase FICO scores in 2025 and 2026 Equifax Strikes Back in Battle of the Credit Scores. Fair Isaac Stock Tumbles.^[1].

This move is seen as an attempt to regain market share and reclaim some of the markup lost by FICO's new direct license approach. The VantageScore is a joint venture of all three major credit bureaus, including Equifax, Experian, and TransUnion. The adoption of VantageScore had been muted before the announcement, but analysts at BMO Capital Markets estimate that FICO maintains a mid-to-high 90% market share. Given the free bundles and more than 50% discount Equifax is providing, the next two years should test just how strong FICO's grip on the credit-scoring space is Equifax Strikes Back in Battle of the Credit Scores. Fair Isaac Stock Tumbles.^[1].

The market reaction to Equifax's counterattack was mixed. While FICO stock was down 3.6% in premarket trading following the announcement, Equifax rose 2.6%, while fellow credit bureaus TransUnion and Experian gained 1.1% and 2.2%, respectively Equifax Strikes Back in Battle of the Credit Scores. Fair Isaac Stock Tumbles.^[1].

Equifax's move comes as part of a broader strategy to promote credit scoring competition and support consumers and the mortgage industry. The company aims to reduce mortgage costs for American homebuyers by offering VantageScore 4.0 mortgage credit scores at an over 50% reduction from FICO's 2026 prices. Additionally, Equifax will offer free income and employment indicators alongside credit reports for automotive, card, and consumer finance customers in 2026 Equifax Expands Mortgage Credit Offerings to Promote Credit Scoring Competition, Supporting Consumers and the Mortgage Industry^[3].

The direct distribution of credit scores by FICO has highlighted a shift in market power, giving FICO greater control over score distribution and potentially challenging the established role and revenue streams of major credit bureaus. Equifax's response aims to mitigate this shift and maintain its position in the competitive credit-scoring landscape.