One-Third of Consumers Would Switch Mortgage Lenders Over Legacy Credit Scores, Experian Finds

One-Third of Consumers Would Switch Mortgage Lenders Over Legacy Credit Scores, Experian Finds

(IN BRIEF) Experian research finds that consumers are increasingly expecting mortgage lenders to use modern credit-scoring models that consider broader financial behaviour, with 33 percent saying they would seek another lender if their current lender relied on legacy credit scores that exclude rent and utility payments. The study also found that 52 percent of consumers would be more interested in pursuing homeownership if lenders considered additional positive payment history, while Gen Z is leading demand for change, with 76 percent of Gen Z adults saying a lender’s scoring model would influence whether they stayed or looked elsewhere. Experian said the findings align with the Federal Housing Finance Agency’s transition to modern scoring models such as VantageScore® 4.0, which can incorporate alternative data and may benefit consumers with limited traditional credit histories. The company also highlighted its $0.99 pricing for VantageScore 4.0 for mortgage originations and its Score Choice offering as measures intended to lower adoption costs and support lenders’ transition to modern credit scoring.

(PRESS RELEASE) DUBLIN, 19-Aug-2026 — /EuropaWire/ — New research from Experian finds that many consumers expect mortgage lenders to use modern credit-scoring approaches that reflect a broader picture of financial behaviour, including positive rent and utility payment history.

According to the research, one-third of consumers, or 33 percent, said they would actively look for a new mortgage lender if they learned their current lender relied on legacy credit-scoring models that do not include rent and utility payments.

Experian said the findings point to a growing shift in consumer expectations around mortgage underwriting, particularly as prospective homebuyers become more aware of expanded data and newer credit-scoring models.

The research also found that the inclusion of everyday financial habits in credit evaluation could encourage more consumers to consider homeownership.

More than half of consumers, or 52 percent, said they would be more interested in pursuing homeownership if lenders considered additional positive payment history, such as rent and utility payments, when evaluating mortgage applications.

Gen Z driving demand for credit modernization

Experian said demand for modernized credit scoring is being led by the next generation of homebuyers.

According to the study, 76 percent of Gen Z consumers over the age of 18 said the type of credit-scoring model used by a mortgage lender would influence whether they stayed with that lender or considered another option.

Nearly half of Gen Z consumers over 18, or 48 percent, said they expect to be in a position to purchase a home within the next four years.

At the same time, nearly two-thirds, or 62 percent, said they are aware that mortgage lenders are beginning to gain access to newer credit-scoring models.

Michele Bodda, President of Experian Housing, Verifications Solutions and Employer Services, said Experian has long advocated for the use of expanded data, including rent and utility payments, to help increase access to homeownership.

She said the company has invested heavily in these areas and that the research shows consumers, particularly younger borrowers, want their complete financial picture to be recognized.

Bodda added that as Gen Z becomes a larger part of the mortgage market, lenders have an opportunity to differentiate themselves by adopting expanded data and modern credit scores that support more comprehensive credit evaluation.

She said this can help make homeownership possible for more consumers.

Support for industry transition to modern scoring models

Experian said consumer demand for broader credit assessment aligns with the Federal Housing Finance Agency’s ongoing transition to modern scoring models for mortgage decisions.

Models such as VantageScore® 4.0 consider alternative data, including rent and utility payments.

Experian said this can be particularly beneficial for consumers with limited traditional credit histories.

To help accelerate industry adoption, Experian recently announced $0.99 pricing for VantageScore® 4.0 for mortgage originations.

This builds on the company’s previously announced Score Choice offering, which gives lenders access to VantageScore 4.0 at no additional cost when they obtain a FICO® Score.

Experian said these initiatives are designed to reduce adoption costs, expand lender choice and support the mortgage industry’s transition to modern credit scoring.

About Experian

Experian is a global data and technology company that supports opportunities for people and businesses worldwide.

The company helps redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions and provide deeper insights into the automotive market through data, analytics and platforms.

Experian also supports millions of people in pursuing financial goals and saving time and money.

The company operates across markets including financial services, healthcare, automotive, agrifinance, insurance and other industry segments.

Experian invests in people and advanced technologies to unlock the power of data and support innovation.

A FTSE 100 Index company listed on the London Stock Exchange under the ticker EXPN, Experian has 25,200 employees across 33 countries.

The company’s corporate headquarters are in Dublin, Ireland.

Methodology

Experian commissioned Atomik Research to conduct an online survey of 2,000 adults aged 18 and over in the United States.

The overall sample has a margin of error of plus or minus 2.2 percentage points at a 95 percent confidence level.

Fieldwork took place between 16 July and 21 July 2026.

VantageScore is a registered trademark of VantageScore Solutions, LLC.

FICO is a registered trademark of Fair Isaac Corporation.

Media Contact:

Gerry Tschopp
Head of Global External Communications
+1 714 830 7756
gerry.tschopp@experian.com

SOURCE: Experian