While being employed as a credit counselor, a customer has been assigned to you and has many good questions. He wants to know:
(1) How credit ratings companies evaluate and determine credit for consumers?
(2) What kinds of scoring models there are?
(3) How these credit-ratings companies measure and monitor performance?
(4) What is a credit scorecard, and how does that work?
Based upon the assigned textbook (Crouhy, M., Galai, D., & Mark, R. The Essentials of Risk Management, 2nd edition. McGraw-Hill, 2013.) Chapter 9: readings on credit answer all of this customer's questions