Theoretical and Natural Science

Theoretical and Natural Science

TNS Vol.2 (CIAP 2022), 02 February 2023

Open Access | Article

Support Vector Machine for Credit System: The Effect of Parameter Optimization and Training Sample

Ling Lei 1 , Xing Liu * 2
1 University of Utah
2 201 Presidents’ Cir, Salt Lake City, UT 84112, United States

* Author to whom correspondence should be addressed.

Theoretical and Natural Science, TNS Vol.2 (CIAP 2022), 9-16
Published 02 February 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Ling Lei, Xing Liu. Support Vector Machine for Credit System: The Effect of Parameter Optimization and Training Sample. TNS (2023) TNS Vol.2 (CIAP 2022): 9-16.


The credit assessment system is an essential part of modern financial institutions, and most of them have adopted different models to perform the task according to their specific needs. Support Vector Machine has been widespread and proved an efficient classifier, especially for relatively small datasets in recent years. When using SVM, data processing, choosing an appropriate kernel function, and tuning parameters can largely affect its performance. The most popular kernel function of SVM is the Radial basis function (RBF), and its main parameters are the regularization parameter, C, and the kernel coefficient, γ. Our study based on the South German credit dataset demonstrates that parameter optimization and an appropriate ratio of the size of the training dataset to the size of the testing dataset could significantly improve the performance of SVM.


Parameter Optimization, Radial Basis Function, South German Credit, Support Vector Machine


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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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