The Research On Personal Credit Scoring Model Based On FAHP

Personal credit scoring is crucial for build up the personal credit system. Through scientific personal credit score, you can accurately know the individual's credit status, recognize the individual's credit risk, saving transaction costs, improve transaction efficiency and promote the optimal allocation of credit resources. At present, China's traditional methods of judging the customer's credit level via subjective point of view have lost its superiority. Some better credit scoring methods from abroad can not be used in China because we lack the conditions at the moment and there are big controversies in accuracy of prediction and stability of effectiveness. Considering about the conditions of market economy and the construction status of personal credit system in China, it is particularly necessary for us to use appropriate research method to build up a local personal credit scoring model with Chinese characteristics.Based on the conclusions of personal credit scoring research status at home and abroad, this thesis introduces and compares the more mature personal credit scoring modeling methods in foreign countries, and analyzes the restrict terms in applying in China. Based on the establishment experiences of personal credit scoring and considering about the status of China's personal credit system, this thesis constitutes personal credit scoring indicator system choosing 21 indicators in 5 subsystems that are personal basic conditions, personal working conditions, personal economic conditions, the relationship with financial institutions and credit register in history. This thesis inducts fuzzy consistent estimate matrix, and then uses Fuzzy Analytic Hierarchy Process to determine the importance of indicators, build up a personal credit scoring model eventually. Finally, this thesis verified the model's scientificalness and rationality through a case, modified the model and gave some suggestions to perfect the model's running conditions.This thesis applied FAHP to China's personal credit scoring. FAHP combines qualitative analysis and quantitative analysis, utilizes the characters of fuzzy identical estimate matrix to progress consistency test, simplifies the complicated AHP consistency test process. FAHP is easy to handle, there are no harsh conditions for its application and it can be applied to a wide range. This is an active exploration for build up personal credit scoring model under imperfect credit system in China.