Time varying or static cut-offs for credit scorecards

K M Jung, L C Thomas and M M-C So
Additional contact information
K M Jung: Kyungsung University, Busan, South Korea
L C Thomas: University of Southampton, Southampton, UK
M M-C So: University of Southampton, Southampton, UK

Journal of the Operational Research Society, 2013, vol. 64, issue 9, 1299-1306

Abstract: This note points out that the ability of credit scorecards to separate Goods from Bads changes over time. A simple way of dealing with such changes is to adjust the cut-off scores being used. These adjustments can be made by using the score to log odds relationship which is regularly monitored. In a case study there are decreases in the costs—in some case considerable decreases—of using the scorecard by making such adjustments compared with making no adjustments.

Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.palgrave-journals.com/jors/journal/v64/n9/pdf/jors2012118a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jors/journal/v64/n9/full/jors2012118a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jorsoc:v:64:y:2013:i:9:p:1299-1306

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/41274

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald and Jonathan Crook

More articles in Journal of the Operational Research Society from Palgrave Macmillan, The OR Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().