Predictive models of expenditure and over-indebtedness for assessing the affordability of new consumer credit applications

Journal of the Operational Research Society

Volumn 57, Issue 6, 2006, Pages 655-669

  Finlay, S M ^a,b  

^a LANCASTER UNIVERSITY   (United Kingdom)

^b LANCASTER UNIVERSITY   (United Kingdom)

Author keywords

Affordability; Banking; Credit and risk scoring; Finance; Over indebtedness

Indexed keywords

FINANCIAL DATA PROCESSING; MATHEMATICAL MODELS; OPERATIONS RESEARCH; RISK ASSESSMENT;

AFFORDABILITY; BANKING; CREDIT AND RISK SCORING; OVER-INDEBTEDNESS;

INVESTMENTS;

EID: 33745770046     PISSN: 01605682     EISSN: 14769360     Source Type: Journal    
DOI: 10.1057/palgrave.jors.2602030     Document Type: Article

References (20)

1. Baesens B et al (2003). Benchmarking state-of-the-art classification algorithms for credit scoring. J Opt Res Soc 54: 627-635.
2. Blacklow P and Ray R (2003). Intra-household resource allocation, consumer preferences and commodity tax reforms: australian evidence. Econ Rec 79: 425-433.
3. Carter H (2004). Widow hits at lenders after debt suicide. The Guardian, 12/03/2004.
4. Consumer Affairs Directorate (2001). Report by the Task Force on Tackling Over-indebtedness. Department of Trade and Industry: London, UK.
5. Consumer Affairs Directorate (2003). Second Report by the Task Force on Tackling Over-indebtedness. Department of Trade and Industry: London, UK.
6. Crook J, Thomas L and Hamilton R (1994). Credit cards: haves, have-nots and cannot-haves. Serv Ind J 14: 204-215.
7. Durand D (1941). Risk Elements in Consumer Installment Financing. National Bureau of Economic Research: New York, USA.
8. Hand DJ and Adams NM (2000). Defining attributes for scorecard construction in credit scoring. J Appl Stat 27: 527-540.
9. Hand DJ and Henley WE (1997). Statistical classification methods in consumer credit scoring: a review. J R Stat Soc Ser A 160: 523-541.
10. Kempson E (2002). Over-indebtedness in Britain. Department of Trade and Industry: London, UK.
11. Lewis EM (1992). An Introduction to Credit Scoring. Athena Press: San Rafael, CA, USA.
12. Lovie A and Lovie P (1986). The flat maximum effect and linear scoring models for prediction. J Forecasting 5: 159-168.
13. McNab H and Wynn A (2000). Principles and Practice of Consumer Risk Management. Financial World Publishing: Canterbury, UK.
14. Overstreet GA, Bradley EL and Kemp RS (1992). The flat maximum effect and generic linear scoring models: a test. IMA J Math Appl Bus Indust 4: 97-109.
15. Phipps SA and Burton PS (1998). What's mine is yours? The influence of male and female incomes on patterns of household expenditure. Economica 65: 599-613.
16. Rosenberg E and Glait A (1994). Quantitative methods in credit management: a survey. Opns Res 42: 589-613.
17. Thomas LC, Banasik J and Crook JN (2001). Recalibrating scorecards. J Opl Res Soc 52: 981-988.
18. Thomas LC, Edelman DB and Crook JN (2002). Credit Scoring and Its Applications. SIAM: Philadelphia, USA.
19. Wilkinson G and Tingay J (2004). The use of affordability data - does it add real value? In: Thomas LC, Edelman DB and Crook JN (eds). Readings in Credit Scoring. Foundations, Developments, and Aims. Oxford University Press, Oxford, UK, pp 73-91.
20. Wonderlic EF (1952). An analysis of factors in granting credit. Ind Univ Bull 50: 163-176.