Fannie Mae and Freddie Mac have started accepting VantageScore 4.0 for mortgage loans in a limited rollout.

This major update brings more competition to traditional FICO scores and helps borrowers with thin credit files. The new model factors in rent, utility, and phone payments, giving a fuller view of financial responsibility.

Quick Impact:  

  • Better chances for responsible payers with limited credit history.

  • FICO 10T expected later this year.

  • Focus shifting to overall risk instead of strict score cutoffs.

National average credit score stands at 714.

Simple Tips:  

  • Pay all bills on time.

  • Keep credit utilization under 30%.

  • Check free reports at AnnualCreditReport.com.

  • Ask lenders about VantageScore 4.0.

A positive step toward a fairer credit system in 2026.