Predicting Credit Card Defaults with Machine Learning

Sometimes the best model is the simplest. The model with minimal manipulation yielded the highest recall score of 0.95. After feature selection and hyperparameter tuning, recall decreased to 0.79. Overfitting means the model is strong at predicting the data on which it was trained, but weak at generalizing to unseen data. The validation score is similar to the test score, so we know it's performing similarly on completely unseen.