Application Scorecard for Auto Loan

Application Scorecard For A Large Automotive Loan Provider In UK


    Application scorecard for sub-prime customers.

  • Review and recalibrate scorecard.
  • Use insight data to improve alignment between underwriting rules and scores.


  • Data collation to align all variables from same time-period was carried out using R for analysis.
  • Customers classification using domain knowledge and statistical methods – Decision tree and cluster analysis.
  • Multiple scorecards each with superior performance than existing scorecard
  • All scorecards rescaled to have similar odds.
  • Scorecard as a linear function for easy integration with loan origination system
  • Reviewed underwriting rule and corporate reporting system and recommended changes.


  • Methodology for current scorecard not well documented
  • Scores not aligned with underwriting rules
  • Data in batches – Credit history, product information, loan terms in different files from different time periods
  • Performance available only for 8% TTD population who take up loan from 55% approval

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