VantageScore 4.0 vs classic FICO 2/4/5: what actually changed in September 2026

Jason Hall · 2026-11-11T16:41:57+00:00

I'm seeing a lot of confusion on files right now about which score actually matters, so here's how I'm explaining it to borrowers.As of September 9, 2026, FHFA allows Fannie and Freddie lenders to use VantageScore 4.0 — but it's optional, it's the lender's choice, and it's one model per loan. No blending. Most lenders I work with are still pulling classic FICO 2, 4 and 5 as their default. FHA doesn't accept VantageScore 4.0 until January 1, 2027, when it will also accept FICO 10T.Why does the model matter? Because the same file scores and settles differently.Under VantageScore 4.0, a paid or settled collection can actually help — the model gives credit for resolving it, and it ignores medical collections entirely. Under classic FICO 2/4/5, a paid third-party collection still counts against the borrower in full. That's why deletion in writing is still the first ask on a classic FICO file, and why I won't fund a settlement strategy until I know which model the lender is pulling.Charge-offs are the exception in both worlds. If an original creditor is still reporting a past-due dollar amount, that balance is actively hurting the score under either model. Zeroing it helps, even without deletion.Two other differences I plan around: VantageScore 4.0 uses 24 months of trended data, so it rewards sustained paydown over time. Classic FICO is a snapshot — last-minute paydown before a rescore or repull has the bigger immediate effect there. And on average, VantageScore 4.0 tends to run roughly 13 points higher than classic FICO on the same file, which is why I never quote a borrower's monitoring-app score as their mortgage score.Practical takeaway: ask the lender, on every file, which model they're using before you decide what to pay, settle, or dispute. The right sequence on one model can waste the borrower's money on the other.If you've got a borrower stuck between the two, I'm happy to take a look — I offer a free credit report audit to help map which strategy fits the lender they're actually using. Happy to answer questions in the thread too.

Rebuilding Credit for a Mortgage

VantageScore 4.0 vs classic FICO 2/4/5: what actually changed in September 2026

Posted by Jason Hall on November 11, 2026 at 4:41 pm
I’m seeing a lot of confusion on files right now about which score actually matters, so here’s how I’m explaining it to borrowers.

As of September 9, 2026, FHFA allows Fannie and Freddie lenders to use VantageScore 4.0 — but it’s optional, it’s the lender’s choice, and it’s one model per loan. No blending. Most lenders I work with are still pulling classic FICO 2, 4 and 5 as their default. FHA doesn’t accept VantageScore 4.0 until January 1, 2027, when it will also accept FICO 10T.

Why does the model matter? Because the same file scores and settles differently.

Under VantageScore 4.0, a paid or settled collection can actually help — the model gives credit for resolving it, and it ignores medical collections entirely. Under classic FICO 2/4/5, a paid third-party collection still counts against the borrower in full. That’s why deletion in writing is still the first ask on a classic FICO file, and why I won’t fund a settlement strategy until I know which model the lender is pulling.

Charge-offs are the exception in both worlds. If an original creditor is still reporting a past-due dollar amount, that balance is actively hurting the score under either model. Zeroing it helps, even without deletion.

Two other differences I plan around: VantageScore 4.0 uses 24 months of trended data, so it rewards sustained paydown over time. Classic FICO is a snapshot — last-minute paydown before a rescore or repull has the bigger immediate effect there. And on average, VantageScore 4.0 tends to run roughly 13 points higher than classic FICO on the same file, which is why I never quote a borrower’s monitoring-app score as their mortgage score.

Practical takeaway: ask the lender, on every file, which model they’re using before you decide what to pay, settle, or dispute. The right sequence on one model can waste the borrower’s money on the other.

If you’ve got a borrower stuck between the two, I’m happy to take a look — I offer a free credit report audit to help map which strategy fits the lender they’re actually using. Happy to answer questions in the thread too.
- This discussion was modified 20 hours, 20 minutes ago by Jason Hall.
Jason Hall replied 20 hours, 24 minutes ago 1 Member · 0 Replies
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