Credit Scoring Models Using Soft Computing Methods: A Survey

Adel Lahsasna, Raja Noor Ainon, and Teh Ying Wah
Faculty of Computer Science and Information Technology, Malaya

Abstract: During the last fifteen years, soft computing methods have been successfully applied in building powerful and flexible credit scoring models and have been suggested to be a possible alternative to statistical methods. In this survey, the main soft computing methods applied in credit scoring models are presented and the advantages as well as the limitations of each method are outlined. The main modelling issues are discussed especially from the data mining point of view. The study concludes with a series of suggestions of other methods to be investigated for credit scoring modelling.

Received August 4, 2008; accepted September 25, 2008