A Fight Over Credit Scores Turns Into All-Out War

A long-simmering battle over who controls credit scoring in America has erupted into open warfare. Fair Isaac, whose FICO score is used in about 90% of consumer-lending decisions in the U.S., announced it will double the price of its mortgage credit score to $10 next year. The company also said it will bypass the three credit-reporting firms that have supplied the data feeding into its algorithm for decades.

Equifax, Experian and TransUnion created VantageScore in 2006 as an alternative to FICO and collectively own the scoring system. The move came months after Bill Pulte, head of the Federal Housing Finance Agency, announced that Fannie Mae and Freddie Mac would allow lenders to use VantageScore for mortgage approvals. The three credit-reporting firms responded by offering VantageScore free for many loans. Fair Isaac had charged a few cents per score for decades before chief executive Will Lansing began raising prices several years ago. Revenue from selling credit scores reached $920 million in fiscal 2024, nearly five times what it was a decade earlier.

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