Credit Scoring

Overview

Credit Scoring refers to the process of assigning a finite set of credit scores to a loan portfolio. For example, you could assign a numeric value of 1 to 5 to each loan, indicating its credit worthiness.

Constructing the Scorecard

Credit Scoring refers to the process of assigning a finite set of credit scores to a loan portfolio. For example, you could assign a numeric value of 1 to 5 to each loan, indicating its credit worthiness.

• Expert Based Assessments
• Tree Based Learning

Scorecard Diagnostics

Diagnostics - presents a series of diagnostics that can be applied to a scorecard system.

Modeling Default Correlations

Maximum Likelihood