Experian: Consumers Expect Modern Mortgage Underwriting; One-Third Ready to Walk Away From Lenders Using Legacy Credit Scores

While a credit confidence gap is keeping many prospective homebuyers out of the market, a growing awareness of expanded data and modern credit-scoring models is sparking a wave of consumer self-advocacy. According to new research from Experian^®, one-third (33%) of consumers claim they’d actively seek out a new mortgage lender if they learned their current lender relied on legacy credit-scoring models that don’t incorporate rent and utility payments.

Experian’s research also showed the inclusion of everyday financial habits in scoring models could bring sidelined buyers to the table. More than half (52%) of consumers said they’d 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 is leading the charge

This demand for credit modernization is being driven by the next generation of homebuyers, who view a lender’s use of broader data in decisioning as a primary competitive differentiator.

According to the study, 3 in 4 (76%) Gen Z consumers over 18 say the type of credit scoring model a mortgage lender uses would influence whether they’d stay with that lender or consider another option.¹

“We’ve long advocated for the use of expanded data, including things like rent and utility payments, to help increase access to homeownership,” said Michele Bodda, President Experian Housing, Verifications Solutions and Employer Services. “We’ve invested heavily in these areas and this research shows consumers, and younger borrowers in particular, want to be recognized for their complete financial picture. As Gen Z becomes a larger share of the mortgage market, mortgage lenders have an opportunity to differentiate themselves by embracing expanded data and modern scores that support more comprehensive credit evaluation while making the dream of homeownership a reality for more consumers.”

The research comes as nearly half (48%) of Gen Z consumers over 18 say they expect to be in a position to purchase a home within the next four years, and nearly two-thirds (62%) are aware that mortgage lenders are beginning to gain access to newer credit scoring models.

This consumer demand aligns with the Federal Housing Finance Agency’s (FHFA) ongoing transition to modern scoring models for mortgage decisions. Models like VantageScore® 4.0² consider alternative data, including things like rent and utility payments, making them especially 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, building on its previously announced Score Choice offering that provides lenders access to VantageScore 4.0 at no additional cost when they obtain a FICO^® Score.³ Together, these initiatives are designed to lower adoption costs, expand lender choice and support the industry’s transition to modern credit scoring.

To learn more about Experian’s recent research visit https://www.experian.com/blogs/news/2026/08/18/legacy-credit-scoring-homebuyers/.

About Experian

Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and platforms. We also assist millions of people to realize their financial goals and help them to save time and money. We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.

We invest in talented people and new advanced technologies to unlock the power of data and to innovate. A FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 25,200 people across 33 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.

Experian and the Experian trademarks used herein are trademarks or registered trademarks of Experian. Other product or company names mentioned herein are the property of their respective owners.

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