Credit Scoring techniques revealed

PROLIANT

Hello, I have been doing some research on score cards and how they are compiled, below are some links to white papers concerning these techniques with valuable "inside" information, the purpose of this thread is to de-mystify the credit scoring techniques lenders use and any additional input and reference would be very welcome.

http://www.nottingham.ac.uk/economics/cfcm/issues/creditscore.pdf

http://www.windsorcme.co.uk/resources/Scorecardtechniques.pdf

http://www.euristix.com/media-articles.php?id=mtgunderwrite


http://www.business-school.ed.ac.uk/research/clusters/management-science/doctoral-study-crc

http://www.antenn-i.com/ccri/presentations/Risk/pancredit-presentation.pdf

http://eprints.soton.ac.uk/36113/01/01-174.pdf

http://www.pancredit.co.uk/pdfs/MultiBureau.pdf

http://www.gresham-computing.com/resourcecentre/pdfs/CLending.pdf

PROLIANT

Here is a link to a Google book on the subject, quite complex but full of useful data.

http://books.google.co.uk/books?id=onYzC_EGgO0C&printsec=frontcover&dq=Developing+and+Implementing+Intelligent+Credit+Scoring&source=bl&ots=T7aKUei8MA&sig=Jm8s5sbP0QGvRSN08tSodwLLbzc&hl=en&ei=HgSUS7eqK5D20wTk1IXrDA&sa=X&oi=book_result&ct=result&resnum=8&ved=0CC8Q6AEwBw#v=onepage&q=&f=false

PROLIANT

This morning I logged in to Equifax to check my report and inadvertantly requested my score, not to worry so I will share some feedback from that.

ElkyElky

Very interesting indeed.

This should be a sticky.

INT1

Interesting reading but still every lender uses different lending criteria rules and they are not going to share that any-time soon.

So the links posted give a little bit of an idea, you won't get a full accurate picture.

PROLIANT

aldo wrote: »

Interesting reading but still every lender uses different lending criteria rules and they are not going to share that any-time soon.

So the links posted give a little bit of an idea, you won't get a full accurate picture.

This is tue, however I am hoping for some inside information from any bank employees on MSE who would discreatly contribute to the puzzel.

ElkyElky

Those documents though have given a good enough insight in to the whole process but we really need some underwriters who are brave enough to share the inner most secrets of their job.

hax_2

OMG more than 2 searches in the last 6 months is too much - I thought 6 was the maximum (although I understand that each lender scores differently). I guess my chances of getting a credit card are slim now.

Whenever I've made an application for a credit card, I've taken a screen shot of each page, so I know what type of information they've asked and what I typed. But I haven't made enough credit card applications for it to be useful for everyone. Hopefully this could be an idea for a future thread.

There was a senior underwriter on this forum who shared some of his secrets a few years ago (Mike) but unfortunately this was before the credit crunch/recession so a lot of the information is out of date/no longer applicable to the current economic climate.

never-in-doubt

Underwriters cannot override or know the scoring model - they only manually assess an application and input the relevant elements that could affect the score....

I deal with risk and governance daily and most the extremely senior managers I meet do not know about scoring methods - the banks usually employ a head of risk to assess and determine the formula used.... underwriters have a nominal score chart to work from, it would not tell them how to pass the score or beat the system...

Ritchie74 and also a few others work in this field and know their stuff, but cannot and will not discuss scoring techniques...

never-in-doubt

Forgot to say - Excellent thread Proliant.... nice one mate. :T:T:T


Must have taken some time to get that amount of info together!:D:D

PROLIANT

never-in-doubt wrote: »

Forgot to say - Excellent thread Proliant.... nice one mate. :T:T:T


Must have taken some time to get that amount of info together!:D:D

I am playing around with some formulae then going to write a program in C#/Java just to see results, an avenue of computer programming I have never ventured in to - algorithms etc.
Data mining Star and Snowflake models is something I have worked with so I have a head start.