Date of Submission
Spring 2019
Academic Programs and Concentrations
Mathematics
Project Advisor 1
Matthew Deady
Abstract/Artist's Statement
Generating credit scores is a data mining process. Credit scores represent the creditworthiness of an individual. Lenders, such as banks, credit insurance companies, and consumer finance companies use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt; therefore, a reliable credit score model is essential. The credit score model is used to analyze multiple parameters that are collected through various channels and to determine who qualifies for a loan, at what interest rate, and what credit limits. This project explores details of credit score models including "Weight of Evidence" and "Information Value" which determines the levels of importance of each parameter, and the mathematics of logistic regression analysis, which yields a probability of the consumer being qualified or unqualified. Additionally, this project explores potential ways to improve the performance of the credit score model.
Open Access Agreement
On-Campus only
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Recommended Citation
Fang, Jintao, "The Credit Scorecard Model" (2019). Senior Projects Spring 2019. 44.
https://digitalcommons.bard.edu/senproj_s2019/44
This work is protected by a Creative Commons license. Any use not permitted under that license is prohibited.
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