Fair Credit Reporting: 16.8.4.2 Reliability During Recessions
Many credit scoring models were developed in booming economic times and there are questions about how predictive they were during economic recessions.382 Several studies, discussed below, have raised questions with respect to home mortgages. Credit scoring models also may have underestimated the effect of the economic slowdowns on credit card borrowers.383 However, FICO claims that its scores perform well in both good economic times and bad.384