Post Graduate Final Project

CredX is a leading credit card provider that gets thousands of credit card applicants every year. But in the past few years, it has experienced an increase in credit loss. The CEO believes that the best strategy to mitigate credit risk is to ‘acquire the right customers’.

In this project, you will help CredX identify the right customers using predictive models. Using past data of the bank’s applicants, you need to determine the factors affecting credit risk, create strategies to mitigate the acquisition risk and assess the financial benefit of your project.

Analyse past data of CredX to determine the factors affecting creditrisk. Build predictivemodels to identify the right customers using predictive models. Finding right customers will help CredX to reduce credit risk.

On the basis of the scorecard, identify the cut-off score below which you would not grant credit cards to applicants. For the rejected population, calculate the application scores and assess the results. Compare the scores of the rejected population with the approved candidates and comment on the observations