Credit risk evaluation of the credit card by grey data mining based on AHP-GRAP

Credit risk evaluation is the groundwork of the credit card business. However, what banks really care about is how to make the most money with least risk. The most difficult problem of the credit risk management for the banks is that they both have to encourage loans and overdraft, but also they need to avoid bad debt. This paper attempts to establish a new credit card risk evaluation system by integrating traditional Analytic Hierarchy Process and Grey System Theories into Data Mining and applies the new hybrid method to evaluate the individual credit risk. It is proved that this new credit risk evaluation method is easy to calculate, and provides an effective foundation for credit risk evaluation. © 2013 Taylor & Francis Group.