Assignment (Empirical) — Assessing Credit Card Default Risk

Introduction:

Credit card default risk is a major challenge for financial institutions because it directly affects profitability and risk management decisions. This topic is especially important given that many individuals turn to peer-to-peer (P2P) loans as a means of debt consolidation. As a result, understanding the characteristics and behaviors of credit card users is critical for P2P investors when assessing borrower risk.

Completion Instructions:

Download the assignment document using the link provided. In this assignment, you will use real-world data from Kaggle to analyze patterns in credit card defaults, build predictive models, and explore the potential to forecast future default trends.

You will:

Perform exploratory data analysis (EDA)

Create summary statistics and visualizations

Build a logistic regression model to predict default likelihood