{"id":134521,"date":"2022-01-22T09:24:11","date_gmt":"2022-01-22T17:24:11","guid":{"rendered":"https:\/\/lifeboat.com\/blog\/2022\/01\/credit-risk-modeling-what-if-models-prediction-accuracy-not-high"},"modified":"2022-01-22T09:24:11","modified_gmt":"2022-01-22T17:24:11","slug":"credit-risk-modeling-what-if-models-prediction-accuracy-not-high","status":"publish","type":"post","link":"https:\/\/lifeboat.com\/blog\/2022\/01\/credit-risk-modeling-what-if-models-prediction-accuracy-not-high","title":{"rendered":"Credit Risk Modeling \u2014 What if Models\u2019 Prediction Accuracy Not High?"},"content":{"rendered":"<p><a class=\"aligncenter blog-photo\" href=\"https:\/\/lifeboat.com\/blog.images\/credit-risk-modeling-what-if-models-prediction-accuracy-not-high.jpg\"><\/a><\/p>\n<p>One of the questions that I always get when I talk about credit risk modeling (Loan payment default, credit card payment default) is about the <a href=\"https:\/\/towardsai.net\/p\/machine-learning\/machine-learning-algorithms-for-beginners-with-python-code-examples-ml-19c6afd60daa\" data-internallinksmanager029f6b8e52c=\"6\" title=\"machine learning algorithms\" target=\"_blank\" rel=\"noopener\">algorithms<\/a>\u2019 or models\u2019 prediction limitations.<\/p>\n<p>How can we implement a solution if the prediction probability is lower? How can we use the model or <a href=\"https:\/\/towardsai.net\/p\/machine-learning\/machine-learning-algorithms-for-beginners-with-python-code-examples-ml-19c6afd60daa\" data-internallinksmanager029f6b8e52c=\"6\" title=\"machine learning algorithms\" target=\"_blank\" rel=\"noopener\">algorithm<\/a> effectively for real-world problems?<\/p>\n<p>Have chalked out what are all the available methods to predict the probability of default, while not getting into them detail since that\u2019s not what this article\u2019s intent is.<\/p>\n<p><!-- Link: <a href=\"https:\/\/towardsai.net\/p\/l\/credit-risk-modeling\">https:\/\/towardsai.net\/p\/l\/credit-risk-modeling<\/a> - what-if-models-prediction-accuracy-not-high --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the questions that I always get when I talk about credit risk modeling (Loan payment default, credit card payment default) is about the algorithms\u2019 or models\u2019 prediction limitations. How can we implement a solution if the prediction probability is lower? How can we use the model or algorithm effectively for real-world problems? Have [\u2026]<\/p>\n","protected":false},"author":662,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[],"class_list":["post-134521","post","type-post","status-publish","format-standard","hentry","category-information-science"],"_links":{"self":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/134521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/users\/662"}],"replies":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/comments?post=134521"}],"version-history":[{"count":0,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/134521\/revisions"}],"wp:attachment":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/media?parent=134521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/categories?post=134521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/tags?post=134521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}