DM: Re: Credit Score

[Abraham Meidan]

Jerry,
Assuming there is an avarage probabiliy that a customer does not have 
money
to pay the bill in a certain month, it follows that the longer a 
customer is
with you, the higher the probability that he or she will not pay at 
least
once.
To overcome this point consider analyzing the credit risk by 
calculating the
number of bills not paid on time divided by the period the person has 
been
with you.

Abraham


>Hi,
> I am looking for help/resources related to credit scoring of
>'existing' customers.  In particular, I am interested in how 
>researchers
>deal with tenure as it relates to whether or not one of our 
>customers will
>continue to pay their bills in a timely manner.  We intuitively feel 
>that
>the longer a customer has been with us (and paying us) the better 
>credit
>risk.  However, my initial results show that the longer a person has 
>been
>with us, the odds of his not paying increase.  Anyone have any ideas?
>
>Thanks
>Jerry Musial
>BellSouth Cellular
>