Any data on how good FICO scores are at predicting default rates? In my limited experience, my own credit report is rarely accurate... and from what I understand, that is quite common. So I wonder how a score calculated on inaccurate information could possibly be a great indicator of default rates?
No data except to postulate that if FICO scores had no correlation to default rates then the entire credit industry would fail.
What is inaccurate about your FICO score? Maybe it results in false negatives (meaning your score is low when it should be high), but if the opposite was true across the board (bad borrowers getting high scores) then the credit industry would collapse.
I'm not sure there is 'no correlation'. But I don't trust the credit industry to not do stupid things...
My credit report often has accounts that aren't mine listed. Balances can be wrong for months. Accounts occasionally show late payments that were on time. The dates are often wrong (sometimes by years) for items, and then little things that are used to verify my identity by many companies can be quite wrong, like past addresses.
