Application Of Individual Credit Reporting In Credit Card Risk Management

At present, credit card has begun to take shape whether in the card capacity, the transaction amount or the users in the Chinese market. The consumption of overdrafts has been deeply rooted in ordinary consumers’ daily life, so the inevitable risk management follows since the beginning. The statistics of People’s Bank of China shows that credit card debt overdue by at least 6 months in China increased gradually, so how to effectively control and manage the credit card risk becomes imperative for the credit card business development of banks.China’s credit card industry development is followed by China’s credit checking industry. The individual credit reporting from People’s Bank of China is most crucial and valuable for credit card divisions or centers of banks and becomes an essential basis at every stage including credit card issuers, transaction and collection after loan.The research object is the credit card center of XY Joint-stock Bank. With the increase of cardholders and swiping amounts, the non-performing loans ratio raises gradually, which shows that the risk management is important for the credit card business of XY Joint-stock Bank on the tenth anniversary of development.The risk management of the credit card center of XY Joint-stock Bank includes three stages:the audit before loan, customer management after loan and collection after loan. The staff will use the individual credit reporting in the three stages, but the problems still exist in the application including non-uniform standards and more man-made judgments.The paper thinks that the solution of problems above is setting up credit evaluation model which is used to judge whether the card is issued to the applicants and the specific amounts; the customer risk management in loan is based on the model to make the authorized monitoring strategy and fraud prevention measures for customers with different credit scores and the credit record examination is carried out for customers with cards to control the risk; the collection after loan is based on the model to make the corresponding collection strategy for customers with different credit scores, find high-risk customers and adopt the corresponding collection measures.