Home  Journals  Finance and Credit  12(540) - 2013 March

Forecasting of credit reliability of the borrower

Available online: 28 March 2013

Subject Heading: Banking

JEL Classification: 

Evaluation of creditworthiness of potential borrowers by scoring far not always provides their effective selection, as evidenced by the observed growth of failure to return credit. In the present article reasons of errors of scoring are discussed, and the effective method for predicting and estimation of credit trustworthiness of the borrower are offered. This method involves the probabilistic predicting of credit consequences coming after the extension of credit and identification of the psychological storage of personality of the borrower from the position of return of the credit. It is concluded that the credit trustworthiness of the borrower by comparing of probabilistic credit profit to the alternative expenses.

Keywords: scoring, credit, borrower, creditworthiness, credit trustworthiness, risks, chances, probabilistic predicting

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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