Equifax and FICO are in a credit score war. FICO announced a new system to bypass Equifax, Experian, and TransUnion. Equifax retaliated by slashing prices on its VantageScore 4.0 service. The move aims to reduce the high cost of credit checks in the mortgage market and challenge FICO’s market dominance.

Equifax is offering VantageScore 4.0 credit scores for $4.95 per report until 2027, with no additional fees. They will also provide free VantageScore reports to mortgage lenders purchasing FICO scores. This move could test FICO’s market share, which currently stands at over 90%.

The Federal Housing Finance Agency approved using VantageScore to inject competition in the mortgage market. FICO’s announcement threatened a 10-15% earnings hit for credit bureaus. Equifax’s response aims to challenge FICO’s monopoly-like pricing tactics and shake up the credit score industry.

Read more at Yahoo Finance: Equifax Fires Back at FICO in Credit Score Wars