Economics

Credit Scores ‘May Lose Some Power’ After Covid, Fed Warns

  • Relief programs skew data on credit quality, New York Fed says
  • Scores aren’t accurately reflecting housing-market stress

The Marriner S. Eccles Federal Reserve building in Washington, D.C.

Photographer: Stefani Reynolds/Bloomberg
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The Federal Reserve Bank of New York warned that credit scores -- the all-powerful number that can determine if a consumer is able to qualify for a loan, rent a home or even buy car insurance -- might have gotten less reliable during the coronavirus pandemic.