Interactive Course

Credit Risk Modeling in R

Apply statistical modeling in a real-life setting using logistic regression and decision trees to model credit risk.

  • 4 hours
  • 16 Videos
  • 52 Exercises
  • 33,851 Participants
  • 4,000 XP

Loved by learners at thousands of top companies:

lego-grey.svg
rei-grey.svg
3m-grey.svg
axa-grey.svg
siemens-grey.svg
ikea-grey.svg

Course Description

This hands-on-course with real-life credit data will teach you how to model credit risk by using logistic regression and decision trees in R.

Modeling credit risk for both personal and company loans is of major importance for banks. The probability that a debtor will default is a key component in getting to a measure for credit risk. While other models will be introduced in this course as well, you will learn about two model types that are often used in the credit scoring context; logistic regression and decision trees. You will learn how to use them in this particular context, and how these models are evaluated by banks.

  1. 1

    Introduction and data preprocessing

    Free

    This chapter begins with a general introduction to credit risk models. We'll explore a real-life data set, then preprocess the data set such that it's in the appropriate format before applying the credit risk models.

  2. Logistic regression

    Logistic regression is still a widely used method in credit risk modeling. In this chapter, you will learn how to apply logistic regression models on credit data in R.

  3. Decision trees

    Classification trees are another popular method in the world of credit risk modeling. In this chapter, you will learn how to build classification trees using credit data in R.

  4. Evaluating a credit risk model

    In this chapter, you'll learn how you can evaluate and compare the results obtained through several credit risk models.

What do other learners have to say?

Devon

“I've used other sites, but DataCamp's been the one that I've stuck with.”

Devon Edwards Joseph

Lloyd's Banking Group

Louis

“DataCamp is the top resource I recommend for learning data science.”

Louis Maiden

Harvard Business School

Ronbowers

“DataCamp is by far my favorite website to learn from.”

Ronald Bowers

Decision Science Analytics @ USAA

Lore Dirick
Lore Dirick

Manager of Data Science Curriculum at Flatiron School

Lore is a data scientist with expertise in applied finance. She obtained her PhD in Business Economics and Statistics at KU Leuven, Belgium. During her PhD, she collaborated with several banks working on advanced methods for the analysis of credit risk data. Lore formerly worked as a Data Science Curriculum Lead at DataCamp, and is now the Manager of Data Science Curriculum at Flatiron School, a coding bootcamp in NYC.

See More
Icon Icon Icon professional info