Discussion Of Individual Customers Of The Commercial Bank Consumer Credit Credit Score

With China's sustained and rapid economic development and continuous improvement in people's income level, in recent years, people's ideas of consumption and investment have undergone great changes. The consumer credit has already become an important financing channel of personal consumption and investment. Housing loan, automobile credit, consumer durables credit, help credit and other personal consumer credit businesses made significant development. The latest statistics show that China's consumer credit stood at 2.2 trillion yuan at the end of 2005, which was 125 times more than in late 1997. The proportion of the amount of consumer credit to the total loan of commercial bank was increased from 0.81 percent to 11.3 percent between 1998 and 2005. However, it's far lower than the proportion of 40-60 percent in the United States, Western Europe and other developed countries. So there is a very huge market space to develop the consumer credit in our country. Currently, however, it is no denying that there are some factors which restrict the development of the consumption-credit businesses in China's commercial banks, such as the level of economic development, the concept of traditional consumption , the morbidity of individual credit rating system, the imperfectness of the mechanism for risk transfer and the lagging of the reform in credit system etc. Among them, it's one of important factors that restrict the development of consumer credit in our country that commercial banks cann't measure and evaluate accurately consumer's credit in the consumption-credit businesses. Our questions are those mentioned as follows: what questions are there in evaluating consumer's credit according to the existing individual credit scoring methods? How to set up reasonable and practical indicator system of personal credit appraisal under the existing personal credit system and the existing credit environment? How to establish the credit scoring model in the consumption-credit businesses based on the evaluation index system? The reason and meaning of the essay to chose this subject is just to answer these questions.In an attempt to answer these questions mentioned above, the paper expounds on the significance of developing vigorously the consumer credit from the macro and micro aspects first of all. Then the essay introduces and analyzes the existing credit scoring method and several commonly used credit scoring models. Meanwhile, this essay applies theory of Analytic Hierarchy Process (AHP) in Operation Research to creating personal credit rating system indicators to measure and evaluate consumer's credit. On the basis of that the essay applies the Fuzzy Comprehensive Evaluation Method in Fuzzy Mathematics to establishing a consumer credit scoring model and makes empirical analysis in order to check the validity of the new model put forward by myself.In a specific analysis of the course of the study, the paper absorbs and learns from some research results of home and foreign scholars on credit scoring and my own business experience. Based on the Analytic Hierarchy Process and a fuzzy comprehensive evaluation of consumer credit, the paper uses a combination of qualitative and quantitative analysis method. In a word, it's my best pleasure if my idea is useful for improving credit scoring in China's commercial banks.