The Behavioral Estimation of Credit Card Accounts by Markov Chain

It is important measure to reduce the risk of credit card that the behavioral change of credit card accounts are supervised. Firstly, Markov chain model of credit card account was conceived in this paper. Secondly, it was discussed in the paper that how to estimate the various state amount of credit card, the amount of the paid state and bad state, the amount and the present value of all receivable accounts, and their variance in the no increasing loan, new constant loans and new seasonal loans of the credit card. Thirdly, based on the above, some suggestions and conclusions were brought at last in the paper. It gives the method and basis to forecast and management the behavioral of credit card accounts