Indirect Credit Scoring

From Open Risk Manual

Definition

Indirect Credit Scoring is a Credit Scoring approach to supporting Credit Decision making that targets (predicts) variables other than the Creditworthiness assessment of a traditional credit score. Such variables could be e.g. outstanding balances [1]. A credit score is implied as a deterministic function of the predicted variables.

References

  1. H G Li, D J Hand, Direct versus indirect credit scoring classifications