What are the traditional personal credit risk assessment methods?

Private lending is an informal credit model in China's credit system. Due to the lack of certain supervision, there are certain risks in this way. How to scientifically and effectively reduce this loan risk? We can do our homework from the following aspects:

1, it is necessary to strictly review the market access mechanism and review the qualifications of some private lending institutions. Private banks with certain funds that can operate according to law can be transformed into private financial institutions within a certain period of time; On the other hand, those who seek usury must be severely cracked down and banned to maintain a good financial order.

2. Credit interest rates should be managed more transparently. To regulate this kind of private lending, we should fully consider the demand for lending and incorporate it into our effective management methods. We can fluctuate according to the requirements of the lender's qualification grade, and use some market competition to promote the development of lending norms.

3. Credit is introduced into the real economy, and people have a lot of capital, so where does this capital need to go? But we also need to enter the cycle of the real industry, so as to promote the sustainable development of the real economy. Instead of just wandering around as some free capital, it is better to use it legally and normatively.

4. The flow of credit funds needs to be strengthened and effectively managed. It is necessary to set up some special supervision institutions to supervise their lending behavior, monitor and manage funds, establish perfect, sound and scientific import statistical monitoring indicators, and conduct necessary supervision and guidance on the flow and investment of some private lending funds to prevent some private mortgages from being everywhere.