![]() ![]() ![]() Steps 2-5 below will then be performed only on the estimation and the first validation data. Create an estimation sample and two validation samples by splitting the data into three groups.However, we have to start somewhere, so we will use the following process: There is no single best process for classification. The value of following a process is so as to avoid getting fooled by randomness in data and finding “results and patterns” that are mainly driven by our own biases and not by the facts/data themselves. It is important to remember that data analytics projects require a delicate balance between experimentation, intuition, and following a process. This is how the first 10 out of the total of 30000 rows look like (transposed, for convenience): Let’s look into the data for a few customers. Repayment status in April, 2005 (scale same as above)Īmount of bill statement in September, 2005 (NT dollar)Īmount of bill statement in August, 2005 (NT dollar)Īmount of bill statement in July, 2005 (NT dollar)Īmount of bill statement in June, 2005 (NT dollar)Īmount of bill statement in May, 2005 (NT dollar)Īmount of bill statement in April, 2005 (NT dollar)Īmount of previous payment in September, 2005 (NT dollar)Īmount of previous payment in August, 2005 (NT dollar)Īmount of previous payment in July, 2005 (NT dollar)Īmount of previous payment in June, 2005 (NT dollar)Īmount of previous payment in May, 2005 (NT dollar)Īmount of previous payment in April, 2005 (NT dollar) Repayment status in May, 2005 (scale same as above) Repayment status in June, 2005 (scale same as above) ![]() Repayment status in July, 2005 (scale same as above) Repayment status in August, 2005 (scale same as above) Repayment status in September, 2005 (-2=no consumption, -1=pay duly, 0=the use of revolving credit, 1=payment delay for one month, 2=payment delay for two months, … 8=payment delay for eight months, 9=payment delay for nine months and above) Marital status (1=married, 2=single, 3=others) (1=graduate school, 2=university, 3=high school, 4=others, 5=unknown, 6=unknown) The dataset contains information on 24 variables, including demographic factors, credit data, history of payment, and bill statements of credit card customers from April 2005 to September 2005, as well as information on the outcome: did the customer default or not? NameĪmount of given credit in NT dollars (includes individual and family/supplementary credit) The credit card issuer has gathered information on 30000 customers. Irvine, CA: University of California, School of Information and Computer Science.) We acknowledge the following: Lichman, M. Higher the charges, the more the debt grows.(Data source. Once you’ve missed your credit card payments for more than 60 days, you will eventually see a hike in your interest charges. Bureaus are responsible for looking into the matter of non-payment as extreme default may have a severe and negative effect on your record.ĭefaulting on credit cards has the potential to lower your credit score by hundreds of points, making it more complicated for you to get further credit in future from the bank or other financial institution. Once you’re in default, your creditor will approach the Credit bureaus. Wage garnishment and visiting court might be unpleasant and take a long time, but a decline in your credit score may have an immediate impact for long. Your credit score will have a poor impact This means you’ll have no choice, but compulsory represent yourself for the hearing in the court. If your creditor is determined to collect debt payment, they may sue you by filing a legal complaint against you. In accordance with the law, harassment calls can be curbed by taking action against the harasser or asking for help from them. At this point, you will have to deal directly with agency, which may include baggage of harassment calls, & threats from them. Their debt collection services are professional and experienced. A collection agency is a third-party agency that is hired by the authorised banks and NBFCs to collect the debt from the defaulter. Chances of receiving calls from a collection agentĪfter a credit card company regulates that you’re being defaulted on your credit card, they’ll transfer your data to a collection agency. Following are the outcomes or consequences of credit card default. It may have a major impact on your financial stability. Credit card default is never a good option. ![]()
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