A Proposed Classification of Data Mining Techniques in Credit Scoring

Credit scoring has become very important issue due to the recent growth of the credit industry, so the credit department of the bank faces a large amount of credit data. Clearly it is impossible analyzing this huge amount of data both in economic and manpower terms, so data mining techniques were employed for this purpose. So far many data mining methods are proposed to handle credit scoring problems that each of them, has some prominences and limitations than the others, but there is no a comprehensive reference introducing most used data mining method in credit scoring problem. The aim of this study is providing a comprehensive literature survey related to applied data mining techniques in credit scoring context. Such reference can help the researchers to be aware of most common methods in credit scoring evaluation, find their limitations, improve them and suggest new method with better capabilities. At the end we notice the limitation of the most proposed methods and suggest the more applicable method than other proposed.