main practices and methods existing in the context of credit rating. The aim of this thesis is to give a suggestion of setting up a credit rating system, where the main techniques used in practice are analyzed, presenting some alternatives and considering the problems that can arise from a statistical point of view. 2007, p. 6). Furthermore, “Credit scoring is the use of statistical models to determine the likelihood that a prospective borrower will default on a loan. Credit scoring models are widely used to evaluate business, real estate, and consumer loans” (Gup & Kolari, 2005, p. 508). credit card applications appears to be focused fairly narrowly on default risk and on a rather small. set of attributes.1 This study will develop an integrated statistical model for evaluating a credit card. application which incorporates both default risk and the anticipated profit from the loan in the. calculation.