Financial Risk V2

1. Risk Score Regression: Predicting a continuous risk score associated with an individual’s likelihood of default or financial instability.
2. Binary Classification: Determining the binary outcome of loan approval, indicating whether a loan applicant is likely to be approved or denied.

The dataset includes a variety of features such as demographic information, credit history, employment status, income levels, existing debt, and other relevant financial metrics, providing a comprehensive foundation for sophisticated data-driven analysis and decision-making. Below are the columns included in the dataset:

ApplicationDate: Loan application date, essential for tracking the history of loan requests.
Age: The applicant's age, an indicator of financial stability.
AnnualIncome: Annual income, representing the individual's financial capacity.
CreditScore: Credit score that measures the applicant's ability to repay.
EmploymentStatus: Employment status, reflecting income stability.
EducationLevel: Education level, which can influence income prospects.
Experience: Years of work experience, indicating consistency in the labor market.
LoanAmount: The requested loan amount.
LoanDuration: The repayment period of the loan.
MaritalStatus: The applicant's marital status, which can affect financial obligations.
NumberOfDependents: The number of dependents the applicant supports.
HomeOwnershipStatus: Type of homeownership (owned or rented), related to financial security.
MonthlyDebtPayments: Monthly debt payments, showing the level of indebtedness.
CreditCardUtilizationRate: Credit utilization percentage, an important factor in risk assessment.
NumberOfOpenCreditLines: The number of active credit lines.
NumberOfCreditInquiries: The number of credit inquiries, a potential signal of financial need.
DebtToIncomeRatio: The ratio of total debt to income, representing the level of debt relative to salary.
BankruptcyHistory: History of bankruptcies, a strong indicator of risk.
LoanPurpose: The reason for the loan (e.g., personal use, mortgage, education).
PreviousLoanDefaults: Records of defaults on previous loans.
PaymentHistory: Payment history, reflecting the applicant's financial behavior.
LengthOfCreditHistory: The duration of the credit history, indicating how long credit has been used.
SavingsAccountBalance: The balance in the savings account, showing financial reserves.
CheckingAccountBalance: The balance in the checking account, representing immediate liquidity.
TotalAssets: Total assets owned by the applicant, such as real estate and investments.
TotalLiabilities: The applicant’s total debt, a key measure of financial health.
MonthlyIncome: Monthly income, directly affecting the ability to make payments.
UtilityBillsPaymentHistory: Payment history for utility bills, indicating financial responsibility.