Credit scoring is undergoing its most significant overhaul in decades as lenders adopt new models that consider alternative financial data alongside traditional credit history. As of April 2026, mortgage lenders can now use VantageScore 4.0, which incorporates rent, utilities, and telecom payments to evaluate creditworthiness, according to the Federal Housing Finance Agency (FHFA). FICO 10T, a second modernized model, is expected to roll out later in 2026, offering lenders additional options for assessing credit risk.
The shift marks a fundamental change in how credit bureaus evaluate borrowers. VantageScore 4.0 looks beyond traditional credit card and loan payment history to include alternative data sources that millions of Americans already pay reliably each month. According to Verity Credit Union, mortgage lenders can now use VantageScore 4.0, which considers additional information such as rent, utilities, or telecom payments. This expansion aims to help people with limited or “thin” credit histories—those with few credit accounts—gain access to credit scoring and potentially qualify for mortgages they might not have qualified for under older models.
Both new models use trended data, meaning they examine payment patterns over the past 24 months rather than relying on a single snapshot of credit behavior. This longer-term perspective rewards consistent financial responsibility and can penalize recent slip-ups less heavily than older models. The FHFA validated both VantageScore 4.0 and FICO 10T in October 2022 following rigorous testing, and the agency is now implementing them in phases to give lenders and borrowers time to adjust.
VantageScore 4.0 became immediately available to approved lenders starting April 22, 2026, according to FHFA announcements. Fannie Mae and Freddie Mac—the government-sponsored enterprises that buy most mortgages—began accepting VantageScore 4.0 scores right away. FICO 10T, meanwhile, is on a slower timeline. The enterprises published historical FICO 10T credit score data on July 1, 2026, but will not adopt scores from the model until a later date, according to FHFA. Industry sources indicate full FICO 10T implementation is expected by late 2026 or early 2027.
Beyond new scoring models, other changes are reshaping credit reports in 2026. Buy Now, Pay Later (BNPL) plans—services that let consumers split purchases into installments—are now appearing on credit reports. On-time BNPL payments can help build credit, but missed payments will hurt scores. Simultaneously, paid medical collections and medical debts under $500 are disappearing from credit reports, reducing surprise score damage for borrowers with past medical bills.
Despite these modernizations, the fundamentals of credit health remain unchanged. On-time payments, keeping credit card balances low relative to limits, maintaining older accounts, and having a mix of credit types—cards, installment loans, mortgages—still matter most, according to Verity Credit Union. The new models simply provide lenders with more complete information to assess the same core behaviors.
The transition has sparked debate among industry analysts. A May 2026 white paper by actuarial firm Milliman, commissioned by FICO, found that FICO Score 10T outperformed VantageScore 4.0 in predicting mortgage default risk across nearly 20 million mortgages. However, VantageScore countered in July 2026 with its own analysis, claiming that VantageScore 4.0 qualifies 5 million more creditworthy mortgage borrowers than FICO 10T, potentially unlocking $1 trillion in origination opportunities. Both models will likely coexist during a transition period, with lenders choosing which to use on a loan-by-loan basis.
Sources
- FHFA — official credit score policy updates and timeline for VantageScore 4.0 and FICO 10T implementation
- Verity Credit Union — details on new credit scoring models and what factors remain important for building credit
- FICO — Milliman white paper findings on FICO 10T predictive performance and Free Access Program details
- VantageScore — analysis of VantageScore 4.0 performance and creditworthy borrower reach
- ABA Banking Journal — announcement of HUD, FHFA rollout of new credit scoring for mortgages
- Realtor.com — confirmation that Fannie Mae and Freddie Mac allow credit scores based on rent and utilities payments
