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Unit - 6 : Credit Scoring
(i) Credit Risk - Customer fails to pay
(ii) Business Risk - Loosing money due to wrong strategy.
(iii) Market Risk - Change in market prices.
(iv)Operations Risk - Processing failures and frauds
Cibil-TransUnion model gives scores ranging from 300 to 900.
Credit Scoring Models are based on the following details of applicants:
(i) Family Size
(ii) Income Levels
(iii) Occupation/Business
(iv) Repayment History on earlier loans
The most common mistakes in credit score will be due to the following;
(i) Confusion of names
(ii) Human Input Error
(iii) Identity Theft
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