Credit Scoring Task

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A Credit Scoring Task is a scoring task that requires credit scores for economic agents.



References

2015

  • (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/Credit_score Retrieved:2015-7-22.
    • A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of the person. A credit score is primarily based on a credit report information typically sourced from credit bureaus.

      Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.

      Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, landlords, and government departments employ the same techniques. Credit scoring also has much overlap with data mining, which uses many similar techniques. These techniques combine thousands of factors but are similar or identical.

2000

1997

  • (Mester, 1997) ⇒ Loretta Mester. (1997). “What’s the Point of Credit Scoring.” In: Federal Reserve Bank of Philadelphia Business Review 3-16.
    • Credit scoring is a method of evaluating the credit risk of loan applications. Using historical data and statistical techniques, credit scoring tries to isolate the effects of various applicant characteristics on delinquencies and defaults. The method produces a “score” that a bank can use to rank its loan applicants or borrowers in terms of risk.