Credit scoring is the term used to describe formal statistical methods used for classifying
applicants for credit into "good" and "bad" risk classes. Such methods have become
increasingly important with the dramatic growth in consumer credit in recent years.
A wide range of statistical methods has been applied, though the literature available
to the public is limited for reasons of commercial confidentiality. Particular problems
arising in the credit scoring context are examined and the statistical methods which
have been applied are reviewed.