The new scoring model has 3 improvements over the 3.0 version. First is the consumers behavior over time, instead of a snapshot of the account and account balance. This will show a trend in payment history, which will ultimately help people who make good on-time payments.
The new model also excludes a lot of public record information, especially liens and judgments. A statement from Sarah Davies (Senior Vice President of AdvantageScore) said this.
“In all likelihood, almost all civil judgments will be removed from credit files and a substantial portion of tax liens will be removed from credit files."
With this new model, medical collections won’t be reported on credit files until after six months have passed. That’s because there is often confusion as to whether the consumer or insurer is responsible for the payment, Davies said.
The third big update is the use of machine-learning techniques to help score consumers with thin credit files. VantageScore used large data-processing platforms to examine thousands and thousands of combinations of consumer behaviors to identify which ones were associated with people paying their bills on time.