| dc.description.abstract | Credit riskis important to any financial institution as the aim is to reduce the risk
of non payment by ensuring efficient collection of customer's payments. This
study analyzes the factors that determine the default of credit cardholders in
ImperialBank based on a sample of cardholders. Secondary data comprising 50
defaulters and 50 non defaulters was collected from applications and
customer's statements for the period of one year.
Analysis was done on the scoring of cardholders and their subsequent
performance in relation to the following variables: gender, age, income, marital
status, number of credit cards held, area of residence, type of employment,
home ownership, percentage of limit utilized, payment pattern, number of cash
withdrawals, percentage of amount due paid, card limit and number of
dependants. The performance of the cardholders in relation to each of the
variableswas assessed.
Currently Imperial Bank usesa scorecard where the variables are based on the
applicant's personal information. It is important for the bank to give the variables
weights with emphasis on: cash advances, limit utilized, age, income and type
of employment as identified by the study | en |
