Key Takeaways
- Equifax cut prices in response to Fair Isaac’s decision to offer credit score data directly to companies that provide credit scores to mortgage providers.
- Equifax will offer its VantageScore 4.0 credit scores at a reduced price or free to customers.
- The firm accused Fair Isaac of monopolistic practices in the credit score industry.
A price war is now underway in the credit score industry.
Equifax (EFX) has responded to a move by score provider Fair Isaac (FICO) by slashing the cost for the information to its customers, news that sent Equifax shares up on Wednesday.
Fair Isaac announced last week it would make its data available directly to firms that provide credit scores to mortgage lenders, effectively bypassing Equifax and rivals TransUnion (TRU) and Experian. Shares of Equifax and TransUnion tumbled on last week’s news, while those of Fair Isaac jumped.
Why This News Matters
By slashing prices and offering free scores, Equifax is challenging FICO’s dominance in mortgage lending, possibly leading to a bigger shake-up in the credit scoring business.
Now, Equifax said it will offer its VantageScore 4.0 mortgage credit scores at a lower rate of $4.50 through the end of 2027 and free VantageScore 4.0 scores “to all Equifax customers in mortgage, automotive, card and consumer finance who purchase FICO scores for the remainder of 2025 and throughout 2026.”
CEO Mark Begor accused Fair Isaac of being a “monopoly in the mortgage industry,” and argued that the “best way to drive change in the marketplace, and to lower costs for consumers and our customers, is through open competition.”
Fair Isaac did not respond to Investopedia’s request for comment in time for publication.
Equifax shares were up nearly 2% in early-afternoon trading, while Fair Isaac shares dropped 9%.
