Example R Notebook for ScoreCard Model One often receives mailers on pre-approved loan based on creditworthiness. When one applies for credit, often it’s approved, sometimes it isn’t... Have you ever wondered how exactly the decision to approve a loan is done? Was the bank able to clearly articulate the rationale of their decision to decline? To ensure fairness and transparency, there are compliance rules which mandates Banks to have such a mechanism. The Federal Trade Commission (FTC), the nation’s(US) consumer protection agency, enforces the Equal Credit Opportunity Act (ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status,age, or because you get public assistance. In BFS, often underwriter needs to decide the creditworthiness of an applicant. Among other things, a scorecard is typically in place and long been used. Now with data deluge and better processing power many Analytical models are also used.
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