Also, from a business perspective credit defaults leads to high
borrowing rates and therefore increased cost of doing business. At the same
time, it helps to promote sales, as buying on credit constitutes an enhancement
of the buyer’s purchasing power, thereby increasing demand, turnover, and,
consequently, profitability. From the consumer perspective, availability of
credit increases the purchase convenience and raises the level of consumption
and welfare of the buyer, as he is able to buy and consume now at a level only
feasible at a future higher level of income. On secondary note it helps
consumer avoid the inconvenience and risks of cash-based transactions,
including fraud, robbery, and violence.
In this context this project is aimed at building cloud
based prediction models to discover what type of customers are most likely to
default on their credit card payments based on credit card data. After
analyzing the data and discovering trends, patterns the findings from these
models will be represented using a web-based visualization tool.