Equifax Fires Back at FICO with Discounted VantageScore 4.0

Equifax has fired back at FICO in the credit score war by slashing prices on its VantageScore 4.0 service, allowing it to bypass FICO's market hold. VantageScore 4.0 credit scores will be available for $4.95 per report, with no added fees, through 2027. Equifax will also offer free VantageScore reports to mortgage lenders who are purchasing FICO scores. This move challenges FICO's market share of over 90%.

Equifax has intensified its competition with Fair Isaac (FICO) by significantly reducing the price of its VantageScore 4.0 service. This move aims to capture market share in the credit scoring industry, challenging FICO's long-standing dominance. Starting in October 2025, VantageScore 4.0 credit scores will be available for $4.95 per report, with no added fees, through 2027. Additionally, Equifax will offer free VantageScore reports to mortgage lenders who are purchasing FICO scores.

This pricing strategy marks a significant shift in the competitive landscape of credit scoring. By offering VantageScore 4.0 at a reduced rate, Equifax is attempting to undercut FICO's market share, which currently stands at over 90%. FICO has responded by introducing a new licensing model that reduces its score fees up to 50%, pricing them at $4.95. This competitive pricing dynamic could potentially reshape the cost dynamics for mortgage lenders and borrowers.

Equifax's move is part of a broader strategy to capture market share and increase its influence in the credit scoring industry. The company's financial performance has shown steady revenue growth and robust profitability metrics, with a revenue growth of 4.5% over the past three years and strong operating and net margins Equifax (EFX) Challenges FICO with Competitive Pricing Strategy^[2]. Despite the competitive pricing, Equifax's stock remained stable, while FICO's stock experienced a decline of 2.5% in response to the announcement Equifax (EFX) Challenges FICO with Competitive Pricing Strategy^[2].

The competitive dynamics in credit scoring may start to impact lenders' choices and margins. As lenders weigh evolving score alternatives, the range of opinions about FICO’s future market position is wide, as seen in the fair value estimates from the Simply Wall St Community, which span from $1,005 to $2,628 per share Fair Isaac (FICO) Is Up 12.1% After Launching Direct Mortgage Score Access Program – What's Changed^[1].

Investors should closely monitor the ongoing developments in the credit scoring industry, as these changes could have significant implications for both FICO and Equifax. The competitive pricing strategy adopted by Equifax could lead to further market share gains and increased profitability for the company, while FICO's response may impact its future growth outlook and market position.