Credit Analysis Technique: USA's Simple Scoring System will not work in China. Scoring from 250-800 for a non developed credit market is inaccurate The strongest argument for a China Debit Report is the impossible task of one dimensional credit scoring based on incomplete credit data, immature credit models and imperfect sharing of existing credit data.
f(a, b, g)           US relies solely on FICO score, function " f " Problem: Direct importation of linear credit scoring in a “thin credit files” situation leads to incorrect and inconsistent lending conclusions. This would lead to a large China credit bureau mistake. Solution: Utilize debit information (housing payment pattern, employment data, cell phone prepayment pattern, bank account volatility, balance aberation analysis) to build consumer debit/credit profile or the foundation for a China Debit Reporting Agency (DRA). Main | Next>>