Score Points Distribution

Allows visual evaluation of the scorecard working range. The columns in the diagram correspond to the number of borrowers who got assigned a certain score.

Score distribution must have a "hill-like" visual form that maximally resembles normal distribution.

If the distribution has a "hill-like" visual form that is concentrated in a very narrow score range, that will cause problems with risk control. The bigger the number of borrowers within a small range is, the scarcer is the possibility of preventing changes in the credit portfolio, the more change-sensitive is the risk control system. In this case, we need to re-calibrate the scorecard by setting broader limits of the score range.

If the distribution is divided in to separate segments, that means that there are borrowers, whose credit behavior differs in principle from that of the main population.
In this case, we need to find the categories of borrowers, whose behavior is "very good" or "very bad", and change the way, in which corresponding characteristics are categorized.