Jan 01 2001

The Applicability of Credit Scoring in Credit Unions

This monograph serves as a primer on credit scoring, explaining different approaches to constructing scorecards. It reviews three different types of scoring systems, and explains how to use scorecards most effectively in an underwriting system, and they discuss the use of judgmental underwriting systems. It also provides a condensed users guide to credit scoring systems.

It shows how to evaluate the data used to construct a scorecard and explains the importance of the data used. It reviews the advantages and disadvantages of three different types of scoring systems: 1) customized, 2) generic, and 3) semi-customized.

The authors explain how to use scorecards most effectively in an underwriting system, and they discuss the use of judgmental underwriting systems, behavioral models, and expert systems, as they relate to underwriting systems.

The monograph summarizes the material it contains by providing a condensed users guide to credit scoring systems.