This thesis stems from my research into the broad area of (credit) scoring and the
predicting, understanding and explaining of consumer behaviour. This research started at
the Univers1ty of Edinburgh on an ESRC funded project in 1988.
This work, which is being submitted as the partial fulfilment of the requirements for the
award of Doctor of Philosophy of Loughborough Unvers1ty, consists of an introductory
chapter and a selection of papers published 1991 - 2001 (inclusive). The papers address
some of the key issues and areas of interest and concern arising from the rapidly evolving
and expanding credit (card) market and the highly competitive nature of the credit industry.
These features were particularly evident during the late 1980's and throughout the 90's
Chapter One provides a general background to the research and outlines some of the key
(practical) issues involved in building a (credit) scorecard Additionally, it provides a brief
summary of each of the research papers appearing in full in Chapters 2- 9 (inclusive) and
ends with some general limitations and conclusions. The research papers appearing in
Chapters 2-9 inclusive) are all concerned with predicting, understanding and explaining
different types of consumer behaviour in relation to the use of credit cards. For example
discriminating between 'GOOD' and 'BAD' repayers of credit card debt on the basis of
different definitions of good and bad, the identification of 'slow payers' using different
statistical methods; examining the characteristics of credit card users and non-users, and
identifying the characteristics of credit card holders most likely to return their credit card.
A Doctoral Thesis. Submitted in partial fulfilment of the requirements for the award of Doctor of Philosophy of Loughborough University