Well, the answer is: Numerous. In order to make a comment about the methods used for credit scoring, one has to know the idea behind credit scoring. Moreover, the processes involved in building a model for credit scoring also entails knowing the possible methods that can be used. Because some of the methods used has advantages in one area but drawbacks in other areas. The following...
To give the issue a sense of an academic taste, we can refer to Loretta J. Mester who is a vice president and economist in the Research Department of the Philadelphia Fed. She is also the head of the department's Banking and Financial Markets section. In her article which is named as “What’s the Point of Credit Scoring?†Loretta J. Mester introduces credit scoring in a funny way...
Credit scoring is a procedure where an institution or an individual is evaluated based on its past payment patterns. In today’s highly globalized environment credit scoring is getting important day by day. It is important firstly, because it reduces the time and energy spent when evaluating a customer to give credit or enter into a transaction. The counterparty which is mostly the...
