Physical Sciences and Mathematics Commons^™

Applications Of Credit Scoring Models, Mimi Mei Ling Chong

Electronic Thesis and Dissertation Repository

The application of credit scoring on consumer lending is an automated, objective and consistent tool which helps lenders to provide quick loan decisions. In order to apply for a loan, applicants must provide their attributes by filling out an application form. Certain attributes are then selected as inputs to a credit scoring model which generates a credit score. The magnitude of this credit score is proved to be related to the credit quality of the loan applicant. As such, it is used to determine whether the loan will be granted, and also the amount of interest being charged. Currently, little …