Research Outline

Credit Scores Correlation to Loan Defaults

Goals

Provide an overview of how credit scores (FICO) correlate to defaults on consumer debt.
  • Research how different brackets of the US FICO score correlate to non-payment of consumer debt. Example: credit scores between 500-550 saw average defaults of 2% on car payments, 1% on real estate, etc
  • Gain an understanding of how credit scores impact defaults.
  • Include relevant US-based data since 2000 and any impacts of recessions on changes in the data.