Application of Business Intelligence in Decision Making for Credit Card Approval

Abstract

This paper aims to show how business intelligence can be applied in the credit card approval process. More specifically, the paper investigates how information like an applicant’s age, credit score, debt, income, and prior default can be used in credit card approval prediction.The dataset used for analysis is a publicly available dataset from the UCI machine learning repository. Logistic regression is used to make a prediction model with a reasonable number of attributes for a comprehensible business model. The Chi-square test of independence is used to test the dependence of credit card approval results with attributes. Research uncovers that prior default is supposed to be the most important attribute in the approval process. Finally, the authors propose several visualizations that could help make smarter decisions with effective credit risk assessment.