Traditional Models Used in Evaluation of Requests for Credit Card and Alternatives (AHP)

Abstract

Thousands of people are applying for credit cards in the bank now days. Bank department that deals with credit cards is impossible to evaluate all multiple applications. Therefore they used automatic procedures based on computer and statistical models to assess the credit card requirements. The approval rating of applications until recently was based on human judgment that deals with ‘is persons evaluating applications. Recently the increasing demand for credit cards brought the necessity of evaluation models. The models used are a synthesis of highly complex mathematical analysis. These models are too difficult to understand as well as their application upon field requires users who have a certain level of education. Deficiencies and difficulties in using of them make the users to look at alternative models which are acceptable and easily accessible. Hierarchical analysis process (AHP) is a model that meets the needs for decision-making but also ease of use from that who owns the model makes it more attractive. Using AHP by banks in their decision-making needs would bring them a low cost and it would be highly efficient.

DOI: 10.5901/jesr.2017.v7n1p131