Exploratory Data Analysis & Risk
Profiling Report
1. Key Patterns and Anomalies
- Missing Income (39 entries → 7.8%).
- Missing Loan_Balance (29 entries → 5.8%).
- Missing Credit_Score (2 entries → 0.4%).
- Some customers have 0 Account Tenure but have credit card type assigned.
- Extremely high Debt_to_Income_Ratio (> 0.9) in a few cases → indicates financial stress.
- Payment history shows repeated 'Missed' or 'Late' status for some accounts → strong
delinquency signals.
2. Missing Data & Handling Strategy
Feature Missing % Strategy Justification
Income 7.8% Impute Median Income distribution
skewed; median
robust to outliers
Loan_Balance 5.8% Impute Median Balance correlates
with debt ratio
Credit_Score 0.4% Drop rows Very low missing %
→ minimal impact
3. Early Risk Indicators
- High Missed_Payments: More than 4 missed payments → strong delinquency signal.
- High Credit_Utilization (>70%): Correlates with financial distress.
- Low Credit_Score (<500): Strong risk factor.
- Debt_to_Income_Ratio > 0.6: Indicates over-leveraging.
- Consistent 'Missed' in Monthly History: Pattern of late behavior → high risk.
4. Summary of Observations
The dataset is generally clean, with limited missing values primarily in Income and
Loan_Balance. Outliers are present in Debt_to_Income_Ratio and Credit_Utilization. Payment
history variables provide strong predictive signals for delinquency. Proper imputation and
handling of anomalies will improve model reliability.
