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Credit scoring and its (mathematical) models

Credit scoring and its (mathematical) models

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We will study the models as used in the literature and the several performance indicators. It is very hard to define a best performing model for all of the cases; therefore, we have mentioned the various models with their own benefits and drawbacks. We want to give an answer to the question, which mathematical models are used for credit scoring in Flanders. It is important to care about the way loans are granted to individuals and Small and Medium-size enterprises (SMEs). Therefore, we performed a small survey to form a picture of the current situation in Flanders. The phenomenon is not only known in credit banks, it is getting more attention in other domains as well, we therefore focused on the aspect of insurance scoring. This is based on the same basis, but is for the allowance of insurances mainly in the car - and house department.