Different Factors the Banks Can Use to Evaluate and Screen the Customers Credits

Abstract

The global economy has become increasingly volatile due to the facts such as wars and epidemics. Therefore, banks may suffer even higher risks from credit card default. This may cause a vicious circle. This paper aims to help the banks evaluate and screen the customer's credits based on different factors. Statistical methods such as ANOVA analysis or Binary logistic regression are used to study and assess the significance of other variables. The results demonstrate that several factors, such as given credit or marital status, are significant to the credit card default, and education may be considered the most critical factor.