# Credit Scores: Performance and Equity

arXiv: https://arxiv.org/abs/2409.00296 · HTML: https://mlsanity.com/paper/2409.00296/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- First posted on arXiv 30 Aug 2024.

## Abstract (arXiv)

Credit scores are critical for allocating consumer debt in the United States, yet little evidence is available on their performance. We benchmark a widely used credit score against a machine learning model of consumer default and find significant misclassification of borrowers, especially those with low scores. Our model improves predictive accuracy for young, low-income, and minority groups due to its superior performance with low quality data, resulting in a gain in standing for these populations. Our findings suggest that improving credit scoring performance could lead to more equitable access to credit.