credit_risk_resampling.ipynb

{
 "cells": [
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "# Credit Risk Resampling Techniques"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 1,
   "metadata": {},
   "outputs": [],
   "source": [
    "import warnings\n",
    "warnings.filterwarnings('ignore')"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 2,
   "metadata": {},
   "outputs": [],
   "source": [
    "import numpy as np\n",
    "import pandas as pd\n",
    "from pathlib import Path\n",
    "from collections import Counter"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 3,
   "metadata": {},
   "outputs": [],
   "source": [
    "# Include all imports for resampling and generating reports\n",
    "from sklearn.model_selection import train_test_split\n",
    "from sklearn.linear_model import LogisticRegression\n",
    "from sklearn.metrics import balanced_accuracy_score\n",
    "from sklearn.metrics import confusion_matrix\n",
    "\n",
    "from imblearn.metrics import classification_report_imbalanced\n",
    "from imblearn.over_sampling import RandomOverSampler\n",
    "from imblearn.over_sampling import SMOTE\n",
    "from imblearn.under_sampling import ClusterCentroids\n",
    "from imblearn.combine import SMOTEENN"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "### Read the CSV and Perform Basic Data Cleaning"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 4,
   "metadata": {},
   "outputs": [],
   "source": [
    "columns = [\n",
    "    \"loan_amnt\", \"int_rate\", \"installment\", \"home_ownership\",\n",
    "    \"annual_inc\", \"verification_status\", \"issue_d\", \"loan_status\",\n",
    "    \"pymnt_plan\", \"dti\", \"delinq_2yrs\", \"inq_last_6mths\",\n",
    "    \"open_acc\", \"pub_rec\", \"revol_bal\", \"total_acc\",\n",
    "    \"initial_list_status\", \"out_prncp\", \"out_prncp_inv\", \"total_pymnt\",\n",
    "    \"total_pymnt_inv\", \"total_rec_prncp\", \"total_rec_int\", \"total_rec_late_fee\",\n",
    "    \"recoveries\", \"collection_recovery_fee\", \"last_pymnt_amnt\", \"next_pymnt_d\",\n",
    "    \"collections_12_mths_ex_med\", \"policy_code\", \"application_type\", \"acc_now_delinq\",\n",
    "    \"tot_coll_amt\", \"tot_cur_bal\", \"open_acc_6m\", \"open_act_il\",\n",
    "    \"open_il_12m\", \"open_il_24m\", \"mths_since_rcnt_il\", \"total_bal_il\",\n",
    "    \"il_util\", \"open_rv_12m\", \"open_rv_24m\", \"max_bal_bc\",\n",
    "    \"all_util\", \"total_rev_hi_lim\", \"inq_fi\", \"total_cu_tl\",\n",
    "    \"inq_last_12m\", \"acc_open_past_24mths\", \"avg_cur_bal\", \"bc_open_to_buy\",\n",
    "    \"bc_util\", \"chargeoff_within_12_mths\", \"delinq_amnt\", \"mo_sin_old_il_acct\",\n",
    "    \"mo_sin_old_rev_tl_op\", \"mo_sin_rcnt_rev_tl_op\", \"mo_sin_rcnt_tl\", \"mort_acc\",\n",
    "    \"mths_since_recent_bc\", \"mths_since_recent_inq\", \"num_accts_ever_120_pd\", \"num_actv_bc_tl\",\n",
    "    \"num_actv_rev_tl\", \"num_bc_sats\", \"num_bc_tl\", \"num_il_tl\",\n",
    "    \"num_op_rev_tl\", \"num_rev_accts\", \"num_rev_tl_bal_gt_0\",\n",
    "    \"num_sats\", \"num_tl_120dpd_2m\", \"num_tl_30dpd\", \"num_tl_90g_dpd_24m\",\n",
    "    \"num_tl_op_past_12m\", \"pct_tl_nvr_dlq\", \"percent_bc_gt_75\", \"pub_rec_bankruptcies\",\n",
    "    \"tax_liens\", \"tot_hi_cred_lim\", \"total_bal_ex_mort\", \"total_bc_limit\",\n",
    "    \"total_il_high_credit_limit\", \"hardship_flag\", \"debt_settlement_flag\"\n",
    "]\n",
    "\n",
    "target = [\"loan_status\"]"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 6,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/html": [
       "<div>\n",
       "<style scoped>\n",
       "    .dataframe tbody tr th:only-of-type {\n",
       "        vertical-align: middle;\n",
       "    }\n",
       "\n",
       "    .dataframe tbody tr th {\n",
       "        vertical-align: top;\n",
       "    }\n",
       "\n",
       "    .dataframe thead th {\n",
       "        text-align: right;\n",
       "    }\n",
       "</style>\n",
       "<table border=\"1\" class=\"dataframe\">\n",
       "  <thead>\n",
       "    <tr style=\"text-align: right;\">\n",
       "      <th></th>\n",
       "      <th>loan_amnt</th>\n",
       "      <th>int_rate</th>\n",
       "      <th>installment</th>\n",
       "      <th>home_ownership</th>\n",
       "      <th>annual_inc</th>\n",
       "      <th>verification_status</th>\n",
       "      <th>issue_d</th>\n",
       "      <th>loan_status</th>\n",
       "      <th>pymnt_plan</th>\n",
       "      <th>dti</th>\n",
       "      <th>...</th>\n",
       "      <th>pct_tl_nvr_dlq</th>\n",
       "      <th>percent_bc_gt_75</th>\n",
       "      <th>pub_rec_bankruptcies</th>\n",
       "      <th>tax_liens</th>\n",
       "      <th>tot_hi_cred_lim</th>\n",
       "      <th>total_bal_ex_mort</th>\n",
       "      <th>total_bc_limit</th>\n",
       "      <th>total_il_high_credit_limit</th>\n",
       "      <th>hardship_flag</th>\n",
       "      <th>debt_settlement_flag</th>\n",
       "    </tr>\n",
       "  </thead>\n",
       "  <tbody>\n",
       "    <tr>\n",
       "      <th>0</th>\n",
       "      <td>10500.0</td>\n",
       "      <td>0.1719</td>\n",
       "      <td>375.35</td>\n",
       "      <td>RENT</td>\n",
       "      <td>66000.0</td>\n",
       "      <td>Source Verified</td>\n",
       "      <td>Mar-2019</td>\n",
       "      <td>low_risk</td>\n",
       "      <td>n</td>\n",
       "      <td>27.24</td>\n",
       "      <td>...</td>\n",
       "      <td>85.7</td>\n",
       "      <td>100.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>65687.0</td>\n",
       "      <td>38199.0</td>\n",
       "      <td>2000.0</td>\n",
       "      <td>61987.0</td>\n",
       "      <td>N</td>\n",
       "      <td>N</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>1</th>\n",
       "      <td>25000.0</td>\n",
       "      <td>0.2000</td>\n",
       "      <td>929.09</td>\n",
       "      <td>MORTGAGE</td>\n",
       "      <td>105000.0</td>\n",
       "      <td>Verified</td>\n",
       "      <td>Mar-2019</td>\n",
       "      <td>low_risk</td>\n",
       "      <td>n</td>\n",
       "      <td>20.23</td>\n",
       "      <td>...</td>\n",
       "      <td>91.2</td>\n",
       "      <td>50.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>271427.0</td>\n",
       "      <td>60641.0</td>\n",
       "      <td>41200.0</td>\n",
       "      <td>49197.0</td>\n",
       "      <td>N</td>\n",
       "      <td>N</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2</th>\n",
       "      <td>20000.0</td>\n",
       "      <td>0.2000</td>\n",
       "      <td>529.88</td>\n",
       "      <td>MORTGAGE</td>\n",
       "      <td>56000.0</td>\n",
       "      <td>Verified</td>\n",
       "      <td>Mar-2019</td>\n",
       "      <td>low_risk</td>\n",
       "      <td>n</td>\n",
       "      <td>24.26</td>\n",
       "      <td>...</td>\n",
       "      <td>66.7</td>\n",
       "      <td>50.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>60644.0</td>\n",
       "      <td>45684.0</td>\n",
       "      <td>7500.0</td>\n",
       "      <td>43144.0</td>\n",
       "      <td>N</td>\n",
       "      <td>N</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>3</th>\n",
       "      <td>10000.0</td>\n",
       "      <td>0.1640</td>\n",
       "      <td>353.55</td>\n",
       "      <td>RENT</td>\n",
       "      <td>92000.0</td>\n",
       "      <td>Verified</td>\n",
       "      <td>Mar-2019</td>\n",
       "      <td>low_risk</td>\n",
       "      <td>n</td>\n",
       "      <td>31.44</td>\n",
       "      <td>...</td>\n",
       "      <td>100.0</td>\n",
       "      <td>50.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>99506.0</td>\n",
       "      <td>68784.0</td>\n",
       "      <td>19700.0</td>\n",
       "      <td>76506.0</td>\n",
       "      <td>N</td>\n",
       "      <td>N</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>4</th>\n",
       "      <td>22000.0</td>\n",
       "      <td>0.1474</td>\n",
       "      <td>520.39</td>\n",
       "      <td>MORTGAGE</td>\n",
       "      <td>52000.0</td>\n",
       "      <td>Not Verified</td>\n",
       "      <td>Mar-2019</td>\n",
       "      <td>low_risk</td>\n",
       "      <td>n</td>\n",
       "      <td>18.76</td>\n",
       "      <td>...</td>\n",
       "      <td>100.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>219750.0</td>\n",
       "      <td>25919.0</td>\n",
       "      <td>27600.0</td>\n",
       "      <td>20000.0</td>\n",
       "      <td>N</td>\n",
       "      <td>N</td>\n",
       "    </tr>\n",
       "  </tbody>\n",
       "</table>\n",
       "<p>5 rows × 86 columns</p>\n",
       "</div>"
      ],
      "text/plain": [
       "   loan_amnt  int_rate  installment home_ownership  annual_inc  \\\n",
       "0    10500.0    0.1719       375.35           RENT     66000.0   \n",
       "1    25000.0    0.2000       929.09       MORTGAGE    105000.0   \n",
       "2    20000.0    0.2000       529.88       MORTGAGE     56000.0   \n",
       "3    10000.0    0.1640       353.55           RENT     92000.0   \n",
       "4    22000.0    0.1474       520.39       MORTGAGE     52000.0   \n",
       "\n",
       "  verification_status   issue_d loan_status pymnt_plan    dti  ...  \\\n",
       "0     Source Verified  Mar-2019    low_risk          n  27.24  ...   \n",
       "1            Verified  Mar-2019    low_risk          n  20.23  ...   \n",
       "2            Verified  Mar-2019    low_risk          n  24.26  ...   \n",
       "3            Verified  Mar-2019    low_risk          n  31.44  ...   \n",
       "4        Not Verified  Mar-2019    low_risk          n  18.76  ...   \n",
       "\n",
       "   pct_tl_nvr_dlq  percent_bc_gt_75  pub_rec_bankruptcies  tax_liens  \\\n",
       "0            85.7             100.0                   0.0        0.0   \n",
       "1            91.2              50.0                   1.0        0.0   \n",
       "2            66.7              50.0                   0.0        0.0   \n",
       "3           100.0              50.0                   1.0        0.0   \n",
       "4           100.0               0.0                   0.0        0.0   \n",
       "\n",
       "   tot_hi_cred_lim  total_bal_ex_mort total_bc_limit  \\\n",
       "0          65687.0            38199.0         2000.0   \n",
       "1         271427.0            60641.0        41200.0   \n",
       "2          60644.0            45684.0         7500.0   \n",
       "3          99506.0            68784.0        19700.0   \n",
       "4         219750.0            25919.0        27600.0   \n",
       "\n",
       "   total_il_high_credit_limit  hardship_flag  debt_settlement_flag  \n",
       "0                     61987.0              N                     N  \n",
       "1                     49197.0              N                     N  \n",
       "2                     43144.0              N                     N  \n",
       "3                     76506.0              N                     N  \n",
       "4                     20000.0              N                     N  \n",
       "\n",
       "[5 rows x 86 columns]"
      ]
     },
     "execution_count": 6,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Load the data\n",
    "file_path = Path('Resources/LoanStats_2019Q1.csv')\n",
    "\n",
    "df = pd.read_csv(file_path, skiprows=1)[:-2]\n",
    "df = df.loc[:, columns].copy()\n",
    "\n",
    "# Drop the null columns where all values are null\n",
    "df = df.dropna(axis='columns', how='all')\n",
    "\n",
    "# Drop the null rows\n",
    "df = df.dropna()\n",
    "\n",
    "# Remove the `Issued` loan status\n",
    "issued_mask = df['loan_status'] != 'Issued'\n",
    "df = df.loc[issued_mask]\n",
    "\n",
    "# convert interest rate to numerical\n",
    "df['int_rate'] = df['int_rate'].str.replace('%', '')\n",
    "df['int_rate'] = df['int_rate'].astype('float') / 100\n",
    "\n",
    "\n",
    "# Convert the target column values to low_risk and high_risk based on their values\n",
    "x = {'Current': 'low_risk'}   \n",
    "df = df.replace(x)\n",
    "\n",
    "x = dict.fromkeys(['Late (31-120 days)', 'Late (16-30 days)', 'Default', 'In Grace Period'], 'high_risk')    \n",
    "df = df.replace(x)\n",
    "\n",
    "df.reset_index(inplace=True, drop=True)\n",
    "\n",
    "df.head()"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "### Split the Data into Training and Testing"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 7,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "{'loan_amnt': dtype('float64'),\n",
       " 'int_rate': dtype('float64'),\n",
       " 'installment': dtype('float64'),\n",
       " 'home_ownership': dtype('O'),\n",
       " 'annual_inc': dtype('float64'),\n",
       " 'verification_status': dtype('O'),\n",
       " 'issue_d': dtype('O'),\n",
       " 'loan_status': dtype('O'),\n",
       " 'pymnt_plan': dtype('O'),\n",
       " 'dti': dtype('float64'),\n",
       " 'delinq_2yrs': dtype('float64'),\n",
       " 'inq_last_6mths': dtype('float64'),\n",
       " 'open_acc': dtype('float64'),\n",
       " 'pub_rec': dtype('float64'),\n",
       " 'revol_bal': dtype('float64'),\n",
       " 'total_acc': dtype('float64'),\n",
       " 'initial_list_status': dtype('O'),\n",
       " 'out_prncp': dtype('float64'),\n",
       " 'out_prncp_inv': dtype('float64'),\n",
       " 'total_pymnt': dtype('float64'),\n",
       " 'total_pymnt_inv': dtype('float64'),\n",
       " 'total_rec_prncp': dtype('float64'),\n",
       " 'total_rec_int': dtype('float64'),\n",
       " 'total_rec_late_fee': dtype('float64'),\n",
       " 'recoveries': dtype('float64'),\n",
       " 'collection_recovery_fee': dtype('float64'),\n",
       " 'last_pymnt_amnt': dtype('float64'),\n",
       " 'next_pymnt_d': dtype('O'),\n",
       " 'collections_12_mths_ex_med': dtype('float64'),\n",
       " 'policy_code': dtype('float64'),\n",
       " 'application_type': dtype('O'),\n",
       " 'acc_now_delinq': dtype('float64'),\n",
       " 'tot_coll_amt': dtype('float64'),\n",
       " 'tot_cur_bal': dtype('float64'),\n",
       " 'open_acc_6m': dtype('float64'),\n",
       " 'open_act_il': dtype('float64'),\n",
       " 'open_il_12m': dtype('float64'),\n",
       " 'open_il_24m': dtype('float64'),\n",
       " 'mths_since_rcnt_il': dtype('float64'),\n",
       " 'total_bal_il': dtype('float64'),\n",
       " 'il_util': dtype('float64'),\n",
       " 'open_rv_12m': dtype('float64'),\n",
       " 'open_rv_24m': dtype('float64'),\n",
       " 'max_bal_bc': dtype('float64'),\n",
       " 'all_util': dtype('float64'),\n",
       " 'total_rev_hi_lim': dtype('float64'),\n",
       " 'inq_fi': dtype('float64'),\n",
       " 'total_cu_tl': dtype('float64'),\n",
       " 'inq_last_12m': dtype('float64'),\n",
       " 'acc_open_past_24mths': dtype('float64'),\n",
       " 'avg_cur_bal': dtype('float64'),\n",
       " 'bc_open_to_buy': dtype('float64'),\n",
       " 'bc_util': dtype('float64'),\n",
       " 'chargeoff_within_12_mths': dtype('float64'),\n",
       " 'delinq_amnt': dtype('float64'),\n",
       " 'mo_sin_old_il_acct': dtype('float64'),\n",
       " 'mo_sin_old_rev_tl_op': dtype('float64'),\n",
       " 'mo_sin_rcnt_rev_tl_op': dtype('float64'),\n",
       " 'mo_sin_rcnt_tl': dtype('float64'),\n",
       " 'mort_acc': dtype('float64'),\n",
       " 'mths_since_recent_bc': dtype('float64'),\n",
       " 'mths_since_recent_inq': dtype('float64'),\n",
       " 'num_accts_ever_120_pd': dtype('float64'),\n",
       " 'num_actv_bc_tl': dtype('float64'),\n",
       " 'num_actv_rev_tl': dtype('float64'),\n",
       " 'num_bc_sats': dtype('float64'),\n",
       " 'num_bc_tl': dtype('float64'),\n",
       " 'num_il_tl': dtype('float64'),\n",
       " 'num_op_rev_tl': dtype('float64'),\n",
       " 'num_rev_accts': dtype('float64'),\n",
       " 'num_rev_tl_bal_gt_0': dtype('float64'),\n",
       " 'num_sats': dtype('float64'),\n",
       " 'num_tl_120dpd_2m': dtype('float64'),\n",
       " 'num_tl_30dpd': dtype('float64'),\n",
       " 'num_tl_90g_dpd_24m': dtype('float64'),\n",
       " 'num_tl_op_past_12m': dtype('float64'),\n",
       " 'pct_tl_nvr_dlq': dtype('float64'),\n",
       " 'percent_bc_gt_75': dtype('float64'),\n",
       " 'pub_rec_bankruptcies': dtype('float64'),\n",
       " 'tax_liens': dtype('float64'),\n",
       " 'tot_hi_cred_lim': dtype('float64'),\n",
       " 'total_bal_ex_mort': dtype('float64'),\n",
       " 'total_bc_limit': dtype('float64'),\n",
       " 'total_il_high_credit_limit': dtype('float64'),\n",
       " 'hardship_flag': dtype('O'),\n",
       " 'debt_settlement_flag': dtype('O')}"
      ]
     },
     "execution_count": 7,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Check column data types to determine which ones need to be changed to numerical\n",
    "dict(df.dtypes)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 8,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/html": [
       "<div>\n",
       "<style scoped>\n",
       "    .dataframe tbody tr th:only-of-type {\n",
       "        vertical-align: middle;\n",
       "    }\n",
       "\n",
       "    .dataframe tbody tr th {\n",
       "        vertical-align: top;\n",
       "    }\n",
       "\n",
       "    .dataframe thead th {\n",
       "        text-align: right;\n",
       "    }\n",
       "</style>\n",
       "<table border=\"1\" class=\"dataframe\">\n",
       "  <thead>\n",
       "    <tr style=\"text-align: right;\">\n",
       "      <th></th>\n",
       "      <th>loan_amnt</th>\n",
       "      <th>int_rate</th>\n",
       "      <th>installment</th>\n",
       "      <th>annual_inc</th>\n",
       "      <th>loan_status</th>\n",
       "      <th>dti</th>\n",
       "      <th>delinq_2yrs</th>\n",
       "      <th>inq_last_6mths</th>\n",
       "      <th>open_acc</th>\n",
       "      <th>pub_rec</th>\n",
       "      <th>...</th>\n",
       "      <th>issue_d_Mar-2019</th>\n",
       "      <th>pymnt_plan_n</th>\n",
       "      <th>hardship_flag_N</th>\n",
       "      <th>debt_settlement_flag_N</th>\n",
       "      <th>initial_list_status_f</th>\n",
       "      <th>initial_list_status_w</th>\n",
       "      <th>next_pymnt_d_Apr-2019</th>\n",
       "      <th>next_pymnt_d_May-2019</th>\n",
       "      <th>application_type_Individual</th>\n",
       "      <th>application_type_Joint App</th>\n",
       "    </tr>\n",
       "  </thead>\n",
       "  <tbody>\n",
       "    <tr>\n",
       "      <th>0</th>\n",
       "      <td>10500.0</td>\n",
       "      <td>0.1719</td>\n",
       "      <td>375.35</td>\n",
       "      <td>66000.0</td>\n",
       "      <td>low_risk</td>\n",
       "      <td>27.24</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>8.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>...</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>1</th>\n",
       "      <td>25000.0</td>\n",
       "      <td>0.2000</td>\n",
       "      <td>929.09</td>\n",
       "      <td>105000.0</td>\n",
       "      <td>low_risk</td>\n",
       "      <td>20.23</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>17.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>...</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2</th>\n",
       "      <td>20000.0</td>\n",
       "      <td>0.2000</td>\n",
       "      <td>529.88</td>\n",
       "      <td>56000.0</td>\n",
       "      <td>low_risk</td>\n",
       "      <td>24.26</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>8.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>...</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>3</th>\n",
       "      <td>10000.0</td>\n",
       "      <td>0.1640</td>\n",
       "      <td>353.55</td>\n",
       "      <td>92000.0</td>\n",
       "      <td>low_risk</td>\n",
       "      <td>31.44</td>\n",
       "      <td>0.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>10.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>...</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>4</th>\n",
       "      <td>22000.0</td>\n",
       "      <td>0.1474</td>\n",
       "      <td>520.39</td>\n",
       "      <td>52000.0</td>\n",
       "      <td>low_risk</td>\n",
       "      <td>18.76</td>\n",
       "      <td>0.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>14.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>...</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "    </tr>\n",
       "  </tbody>\n",
       "</table>\n",
       "<p>5 rows × 96 columns</p>\n",
       "</div>"
      ],
      "text/plain": [
       "   loan_amnt  int_rate  installment  annual_inc loan_status    dti  \\\n",
       "0    10500.0    0.1719       375.35     66000.0    low_risk  27.24   \n",
       "1    25000.0    0.2000       929.09    105000.0    low_risk  20.23   \n",
       "2    20000.0    0.2000       529.88     56000.0    low_risk  24.26   \n",
       "3    10000.0    0.1640       353.55     92000.0    low_risk  31.44   \n",
       "4    22000.0    0.1474       520.39     52000.0    low_risk  18.76   \n",
       "\n",
       "   delinq_2yrs  inq_last_6mths  open_acc  pub_rec  ...  issue_d_Mar-2019  \\\n",
       "0          0.0             0.0       8.0      0.0  ...                 1   \n",
       "1          0.0             0.0      17.0      1.0  ...                 1   \n",
       "2          0.0             0.0       8.0      0.0  ...                 1   \n",
       "3          0.0             1.0      10.0      1.0  ...                 1   \n",
       "4          0.0             1.0      14.0      0.0  ...                 1   \n",
       "\n",
       "   pymnt_plan_n  hardship_flag_N  debt_settlement_flag_N  \\\n",
       "0             1                1                       1   \n",
       "1             1                1                       1   \n",
       "2             1                1                       1   \n",
       "3             1                1                       1   \n",
       "4             1                1                       1   \n",
       "\n",
       "   initial_list_status_f  initial_list_status_w  next_pymnt_d_Apr-2019  \\\n",
       "0                      0                      1                      0   \n",
       "1                      0                      1                      0   \n",
       "2                      0                      1                      0   \n",
       "3                      0                      1                      0   \n",
       "4                      0                      1                      0   \n",
       "\n",
       "   next_pymnt_d_May-2019  application_type_Individual  \\\n",
       "0                      1                            1   \n",
       "1                      1                            1   \n",
       "2                      1                            1   \n",
       "3                      1                            1   \n",
       "4                      1                            1   \n",
       "\n",
       "   application_type_Joint App  \n",
       "0                           0  \n",
       "1                           0  \n",
       "2                           0  \n",
       "3                           0  \n",
       "4                           0  \n",
       "\n",
       "[5 rows x 96 columns]"
      ]
     },
     "execution_count": 8,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Create the training variables by converting the string values into numerical ones using the get_dummies() method.\n",
    "encode_df = pd.get_dummies(df, columns=[\"home_ownership\", \n",
    "                                        \"verification_status\",\n",
    "                                        \"issue_d\",\n",
    "                                        \"pymnt_plan\",\n",
    "                                        \"hardship_flag\",\n",
    "                                        \"debt_settlement_flag\",\n",
    "                                        \"initial_list_status\",\n",
    "                                        \"next_pymnt_d\",\n",
    "                                        \"application_type\"\n",
    "                                       ])\n",
    "\n",
    "encode_df.head()"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 9,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/html": [
       "<div>\n",
       "<style scoped>\n",
       "    .dataframe tbody tr th:only-of-type {\n",
       "        vertical-align: middle;\n",
       "    }\n",
       "\n",
       "    .dataframe tbody tr th {\n",
       "        vertical-align: top;\n",
       "    }\n",
       "\n",
       "    .dataframe thead th {\n",
       "        text-align: right;\n",
       "    }\n",
       "</style>\n",
       "<table border=\"1\" class=\"dataframe\">\n",
       "  <thead>\n",
       "    <tr style=\"text-align: right;\">\n",
       "      <th></th>\n",
       "      <th>loan_amnt</th>\n",
       "      <th>int_rate</th>\n",
       "      <th>installment</th>\n",
       "      <th>annual_inc</th>\n",
       "      <th>dti</th>\n",
       "      <th>delinq_2yrs</th>\n",
       "      <th>inq_last_6mths</th>\n",
       "      <th>open_acc</th>\n",
       "      <th>pub_rec</th>\n",
       "      <th>revol_bal</th>\n",
       "      <th>...</th>\n",
       "      <th>issue_d_Mar-2019</th>\n",
       "      <th>pymnt_plan_n</th>\n",
       "      <th>hardship_flag_N</th>\n",
       "      <th>debt_settlement_flag_N</th>\n",
       "      <th>initial_list_status_f</th>\n",
       "      <th>initial_list_status_w</th>\n",
       "      <th>next_pymnt_d_Apr-2019</th>\n",
       "      <th>next_pymnt_d_May-2019</th>\n",
       "      <th>application_type_Individual</th>\n",
       "      <th>application_type_Joint App</th>\n",
       "    </tr>\n",
       "  </thead>\n",
       "  <tbody>\n",
       "    <tr>\n",
       "      <th>0</th>\n",
       "      <td>10500.0</td>\n",
       "      <td>0.1719</td>\n",
       "      <td>375.35</td>\n",
       "      <td>66000.0</td>\n",
       "      <td>27.24</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>8.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>1609.0</td>\n",
       "      <td>...</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>1</th>\n",
       "      <td>25000.0</td>\n",
       "      <td>0.2000</td>\n",
       "      <td>929.09</td>\n",
       "      <td>105000.0</td>\n",
       "      <td>20.23</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>17.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>18368.0</td>\n",
       "      <td>...</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2</th>\n",
       "      <td>20000.0</td>\n",
       "      <td>0.2000</td>\n",
       "      <td>529.88</td>\n",
       "      <td>56000.0</td>\n",
       "      <td>24.26</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>8.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>13247.0</td>\n",
       "      <td>...</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>3</th>\n",
       "      <td>10000.0</td>\n",
       "      <td>0.1640</td>\n",
       "      <td>353.55</td>\n",
       "      <td>92000.0</td>\n",
       "      <td>31.44</td>\n",
       "      <td>0.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>10.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>17996.0</td>\n",
       "      <td>...</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>4</th>\n",
       "      <td>22000.0</td>\n",
       "      <td>0.1474</td>\n",
       "      <td>520.39</td>\n",
       "      <td>52000.0</td>\n",
       "      <td>18.76</td>\n",
       "      <td>0.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>14.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>9091.0</td>\n",
       "      <td>...</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "      <td>1</td>\n",
       "      <td>1</td>\n",
       "      <td>0</td>\n",
       "    </tr>\n",
       "  </tbody>\n",
       "</table>\n",
       "<p>5 rows × 95 columns</p>\n",
       "</div>"
      ],
      "text/plain": [
       "   loan_amnt  int_rate  installment  annual_inc    dti  delinq_2yrs  \\\n",
       "0    10500.0    0.1719       375.35     66000.0  27.24          0.0   \n",
       "1    25000.0    0.2000       929.09    105000.0  20.23          0.0   \n",
       "2    20000.0    0.2000       529.88     56000.0  24.26          0.0   \n",
       "3    10000.0    0.1640       353.55     92000.0  31.44          0.0   \n",
       "4    22000.0    0.1474       520.39     52000.0  18.76          0.0   \n",
       "\n",
       "   inq_last_6mths  open_acc  pub_rec  revol_bal  ...  issue_d_Mar-2019  \\\n",
       "0             0.0       8.0      0.0     1609.0  ...                 1   \n",
       "1             0.0      17.0      1.0    18368.0  ...                 1   \n",
       "2             0.0       8.0      0.0    13247.0  ...                 1   \n",
       "3             1.0      10.0      1.0    17996.0  ...                 1   \n",
       "4             1.0      14.0      0.0     9091.0  ...                 1   \n",
       "\n",
       "   pymnt_plan_n  hardship_flag_N  debt_settlement_flag_N  \\\n",
       "0             1                1                       1   \n",
       "1             1                1                       1   \n",
       "2             1                1                       1   \n",
       "3             1                1                       1   \n",
       "4             1                1                       1   \n",
       "\n",
       "   initial_list_status_f  initial_list_status_w  next_pymnt_d_Apr-2019  \\\n",
       "0                      0                      1                      0   \n",
       "1                      0                      1                      0   \n",
       "2                      0                      1                      0   \n",
       "3                      0                      1                      0   \n",
       "4                      0                      1                      0   \n",
       "\n",
       "   next_pymnt_d_May-2019  application_type_Individual  \\\n",
       "0                      1                            1   \n",
       "1                      1                            1   \n",
       "2                      1                            1   \n",
       "3                      1                            1   \n",
       "4                      1                            1   \n",
       "\n",
       "   application_type_Joint App  \n",
       "0                           0  \n",
       "1                           0  \n",
       "2                           0  \n",
       "3                           0  \n",
       "4                           0  \n",
       "\n",
       "[5 rows x 95 columns]"
      ]
     },
     "execution_count": 9,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Create features\n",
    "X = encode_df.copy()\n",
    "X = X.drop(\"loan_status\", axis=1)\n",
    "\n",
    "X.head()"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 10,
   "metadata": {},
   "outputs": [],
   "source": [
    "# Create target\n",
    "y = encode_df[\"loan_status\"]"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 11,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/html": [
       "<div>\n",
       "<style scoped>\n",
       "    .dataframe tbody tr th:only-of-type {\n",
       "        vertical-align: middle;\n",
       "    }\n",
       "\n",
       "    .dataframe tbody tr th {\n",
       "        vertical-align: top;\n",
       "    }\n",
       "\n",
       "    .dataframe thead th {\n",
       "        text-align: right;\n",
       "    }\n",
       "</style>\n",
       "<table border=\"1\" class=\"dataframe\">\n",
       "  <thead>\n",
       "    <tr style=\"text-align: right;\">\n",
       "      <th></th>\n",
       "      <th>loan_amnt</th>\n",
       "      <th>int_rate</th>\n",
       "      <th>installment</th>\n",
       "      <th>annual_inc</th>\n",
       "      <th>dti</th>\n",
       "      <th>delinq_2yrs</th>\n",
       "      <th>inq_last_6mths</th>\n",
       "      <th>open_acc</th>\n",
       "      <th>pub_rec</th>\n",
       "      <th>revol_bal</th>\n",
       "      <th>...</th>\n",
       "      <th>issue_d_Mar-2019</th>\n",
       "      <th>pymnt_plan_n</th>\n",
       "      <th>hardship_flag_N</th>\n",
       "      <th>debt_settlement_flag_N</th>\n",
       "      <th>initial_list_status_f</th>\n",
       "      <th>initial_list_status_w</th>\n",
       "      <th>next_pymnt_d_Apr-2019</th>\n",
       "      <th>next_pymnt_d_May-2019</th>\n",
       "      <th>application_type_Individual</th>\n",
       "      <th>application_type_Joint App</th>\n",
       "    </tr>\n",
       "  </thead>\n",
       "  <tbody>\n",
       "    <tr>\n",
       "      <th>count</th>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>6.881700e+04</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>...</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.0</td>\n",
       "      <td>68817.0</td>\n",
       "      <td>68817.0</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.000000</td>\n",
       "      <td>68817.000000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>mean</th>\n",
       "      <td>16677.594562</td>\n",
       "      <td>0.127718</td>\n",
       "      <td>480.652863</td>\n",
       "      <td>8.821371e+04</td>\n",
       "      <td>21.778153</td>\n",
       "      <td>0.217766</td>\n",
       "      <td>0.497697</td>\n",
       "      <td>12.587340</td>\n",
       "      <td>0.126030</td>\n",
       "      <td>17604.142828</td>\n",
       "      <td>...</td>\n",
       "      <td>0.177238</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>0.123879</td>\n",
       "      <td>0.876121</td>\n",
       "      <td>0.383161</td>\n",
       "      <td>0.616839</td>\n",
       "      <td>0.860340</td>\n",
       "      <td>0.139660</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>std</th>\n",
       "      <td>10277.348590</td>\n",
       "      <td>0.048130</td>\n",
       "      <td>288.062432</td>\n",
       "      <td>1.155800e+05</td>\n",
       "      <td>20.199244</td>\n",
       "      <td>0.718367</td>\n",
       "      <td>0.758122</td>\n",
       "      <td>6.022869</td>\n",
       "      <td>0.336797</td>\n",
       "      <td>21835.880400</td>\n",
       "      <td>...</td>\n",
       "      <td>0.381873</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.0</td>\n",
       "      <td>0.329446</td>\n",
       "      <td>0.329446</td>\n",
       "      <td>0.486161</td>\n",
       "      <td>0.486161</td>\n",
       "      <td>0.346637</td>\n",
       "      <td>0.346637</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>min</th>\n",
       "      <td>1000.000000</td>\n",
       "      <td>0.060000</td>\n",
       "      <td>30.890000</td>\n",
       "      <td>4.000000e+01</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>2.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>...</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>0.000000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>25%</th>\n",
       "      <td>9000.000000</td>\n",
       "      <td>0.088100</td>\n",
       "      <td>265.730000</td>\n",
       "      <td>5.000000e+04</td>\n",
       "      <td>13.890000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>8.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>6293.000000</td>\n",
       "      <td>...</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>0.000000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>50%</th>\n",
       "      <td>15000.000000</td>\n",
       "      <td>0.118000</td>\n",
       "      <td>404.560000</td>\n",
       "      <td>7.300000e+04</td>\n",
       "      <td>19.760000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>11.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>12068.000000</td>\n",
       "      <td>...</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>0.000000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>75%</th>\n",
       "      <td>24000.000000</td>\n",
       "      <td>0.155700</td>\n",
       "      <td>648.100000</td>\n",
       "      <td>1.040000e+05</td>\n",
       "      <td>26.660000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>16.000000</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>21735.000000</td>\n",
       "      <td>...</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>0.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>0.000000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>max</th>\n",
       "      <td>40000.000000</td>\n",
       "      <td>0.308400</td>\n",
       "      <td>1676.230000</td>\n",
       "      <td>8.797500e+06</td>\n",
       "      <td>999.000000</td>\n",
       "      <td>18.000000</td>\n",
       "      <td>5.000000</td>\n",
       "      <td>72.000000</td>\n",
       "      <td>4.000000</td>\n",
       "      <td>587191.000000</td>\n",
       "      <td>...</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.0</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>1.000000</td>\n",
       "      <td>1.000000</td>\n",
       "    </tr>\n",
       "  </tbody>\n",
       "</table>\n",
       "<p>8 rows × 95 columns</p>\n",
       "</div>"
      ],
      "text/plain": [
       "          loan_amnt      int_rate   installment    annual_inc           dti  \\\n",
       "count  68817.000000  68817.000000  68817.000000  6.881700e+04  68817.000000   \n",
       "mean   16677.594562      0.127718    480.652863  8.821371e+04     21.778153   \n",
       "std    10277.348590      0.048130    288.062432  1.155800e+05     20.199244   \n",
       "min     1000.000000      0.060000     30.890000  4.000000e+01      0.000000   \n",
       "25%     9000.000000      0.088100    265.730000  5.000000e+04     13.890000   \n",
       "50%    15000.000000      0.118000    404.560000  7.300000e+04     19.760000   \n",
       "75%    24000.000000      0.155700    648.100000  1.040000e+05     26.660000   \n",
       "max    40000.000000      0.308400   1676.230000  8.797500e+06    999.000000   \n",
       "\n",
       "        delinq_2yrs  inq_last_6mths      open_acc       pub_rec  \\\n",
       "count  68817.000000    68817.000000  68817.000000  68817.000000   \n",
       "mean       0.217766        0.497697     12.587340      0.126030   \n",
       "std        0.718367        0.758122      6.022869      0.336797   \n",
       "min        0.000000        0.000000      2.000000      0.000000   \n",
       "25%        0.000000        0.000000      8.000000      0.000000   \n",
       "50%        0.000000        0.000000     11.000000      0.000000   \n",
       "75%        0.000000        1.000000     16.000000      0.000000   \n",
       "max       18.000000        5.000000     72.000000      4.000000   \n",
       "\n",
       "           revol_bal  ...  issue_d_Mar-2019  pymnt_plan_n  hardship_flag_N  \\\n",
       "count   68817.000000  ...      68817.000000       68817.0          68817.0   \n",
       "mean    17604.142828  ...          0.177238           1.0              1.0   \n",
       "std     21835.880400  ...          0.381873           0.0              0.0   \n",
       "min         0.000000  ...          0.000000           1.0              1.0   \n",
       "25%      6293.000000  ...          0.000000           1.0              1.0   \n",
       "50%     12068.000000  ...          0.000000           1.0              1.0   \n",
       "75%     21735.000000  ...          0.000000           1.0              1.0   \n",
       "max    587191.000000  ...          1.000000           1.0              1.0   \n",
       "\n",
       "       debt_settlement_flag_N  initial_list_status_f  initial_list_status_w  \\\n",
       "count                 68817.0           68817.000000           68817.000000   \n",
       "mean                      1.0               0.123879               0.876121   \n",
       "std                       0.0               0.329446               0.329446   \n",
       "min                       1.0               0.000000               0.000000   \n",
       "25%                       1.0               0.000000               1.000000   \n",
       "50%                       1.0               0.000000               1.000000   \n",
       "75%                       1.0               0.000000               1.000000   \n",
       "max                       1.0               1.000000               1.000000   \n",
       "\n",
       "       next_pymnt_d_Apr-2019  next_pymnt_d_May-2019  \\\n",
       "count           68817.000000           68817.000000   \n",
       "mean                0.383161               0.616839   \n",
       "std                 0.486161               0.486161   \n",
       "min                 0.000000               0.000000   \n",
       "25%                 0.000000               0.000000   \n",
       "50%                 0.000000               1.000000   \n",
       "75%                 1.000000               1.000000   \n",
       "max                 1.000000               1.000000   \n",
       "\n",
       "       application_type_Individual  application_type_Joint App  \n",
       "count                 68817.000000                68817.000000  \n",
       "mean                      0.860340                    0.139660  \n",
       "std                       0.346637                    0.346637  \n",
       "min                       0.000000                    0.000000  \n",
       "25%                       1.000000                    0.000000  \n",
       "50%                       1.000000                    0.000000  \n",
       "75%                       1.000000                    0.000000  \n",
       "max                       1.000000                    1.000000  \n",
       "\n",
       "[8 rows x 95 columns]"
      ]
     },
     "execution_count": 11,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "X.describe()"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 12,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "low_risk     68470\n",
       "high_risk      347\n",
       "Name: loan_status, dtype: int64"
      ]
     },
     "execution_count": 12,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Check the balance of target values\n",
    "y.value_counts()"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 13,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "Counter({'low_risk': 51352, 'high_risk': 260})"
      ]
     },
     "execution_count": 13,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Establish initial training and testing variables\n",
    "X_train, X_test, y_train, y_test = train_test_split(X, \n",
    "                                                    y, \n",
    "                                                    random_state=1, \n",
    "                                                    stratify=y)\n",
    "\n",
    "Counter(y_train)"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "## Oversampling\n",
    "\n",
    "Note: Used a random state of 1 for each sampling algorithm to ensure consistency between tests"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "### Naive Random Oversampling"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 14,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "Counter({'low_risk': 51352, 'high_risk': 51352})"
      ]
     },
     "execution_count": 14,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Resample the training data with the RandomOversampler\n",
    "ros = RandomOverSampler(random_state=1)\n",
    "X_resampled, y_resampled = ros.fit_resample(X_train, y_train)\n",
    "\n",
    "Counter(y_resampled)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 15,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "LogisticRegression(random_state=1)"
      ]
     },
     "execution_count": 15,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Train the Logistic Regression model using the resampled data\n",
    "model = LogisticRegression(solver='lbfgs', random_state=1)\n",
    "model.fit(X_resampled, y_resampled)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 16,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "0.6322856360112968"
      ]
     },
     "execution_count": 16,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Calculate the balanced accuracy score\n",
    "y_pred = model.predict(X_test)\n",
    "balanced_accuracy_score(y_test, y_pred)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 17,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "array([[   50,    37],\n",
       "       [ 5309, 11809]], dtype=int64)"
      ]
     },
     "execution_count": 17,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Display the confusion matrix\n",
    "confusion_matrix(y_test, y_pred)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 18,
   "metadata": {},
   "outputs": [
    {
     "name": "stdout",
     "output_type": "stream",
     "text": [
      "                   pre       rec       spe        f1       geo       iba       sup\n",
      "\n",
      "  high_risk       0.01      0.57      0.69      0.02      0.63      0.39        87\n",
      "   low_risk       1.00      0.69      0.57      0.82      0.63      0.40     17118\n",
      "\n",
      "avg / total       0.99      0.69      0.58      0.81      0.63      0.40     17205\n",
      "\n"
     ]
    }
   ],
   "source": [
    "# Print the imbalanced classification report\n",
    "print(classification_report_imbalanced(y_test, y_pred))"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "### SMOTE Oversampling"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 19,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "Counter({'low_risk': 51352, 'high_risk': 51352})"
      ]
     },
     "execution_count": 19,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Resample the training data with SMOTE\n",
    "X_resampled, y_resampled = SMOTE(random_state=1, sampling_strategy='auto').fit_resample(\n",
    "    X_train, y_train)\n",
    "\n",
    "Counter(y_resampled)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 20,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "LogisticRegression(random_state=1)"
      ]
     },
     "execution_count": 20,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Train the Logistic Regression model using the resampled data\n",
    "model = LogisticRegression(solver='lbfgs', random_state=1)\n",
    "model.fit(X_resampled, y_resampled)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 21,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "0.6521568343062958"
      ]
     },
     "execution_count": 21,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Calculate the balanced accuracy score\n",
    "y_pred = model.predict(X_test)\n",
    "balanced_accuracy_score(y_test, y_pred)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 22,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "array([[   57,    30],\n",
       "       [ 6006, 11112]], dtype=int64)"
      ]
     },
     "execution_count": 22,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Display the confusion matrix\n",
    "confusion_matrix(y_test, y_pred)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 23,
   "metadata": {},
   "outputs": [
    {
     "name": "stdout",
     "output_type": "stream",
     "text": [
      "                   pre       rec       spe        f1       geo       iba       sup\n",
      "\n",
      "  high_risk       0.01      0.66      0.65      0.02      0.65      0.43        87\n",
      "   low_risk       1.00      0.65      0.66      0.79      0.65      0.43     17118\n",
      "\n",
      "avg / total       0.99      0.65      0.66      0.78      0.65      0.43     17205\n",
      "\n"
     ]
    }
   ],
   "source": [
    "# Print the imbalanced classification report\n",
    "print(classification_report_imbalanced(y_test, y_pred))"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "## Undersampling\n",
    "\n",
    "Note: Used a random state of 1 for each sampling algorithm to ensure consistency between tests"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 24,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "Counter({'high_risk': 260, 'low_risk': 260})"
      ]
     },
     "execution_count": 24,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Resample the data using the ClusterCentroids resampler\n",
    "# Warning: This is a large dataset, and takes some time to complete\n",
    "cc = ClusterCentroids(random_state=1)\n",
    "X_resampled, y_resampled = cc.fit_resample(X_train, y_train)\n",
    "\n",
    "Counter(y_resampled)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 25,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "LogisticRegression(random_state=78)"
      ]
     },
     "execution_count": 25,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Train the Logistic Regression model using the resampled data\n",
    "model = LogisticRegression(solver='lbfgs', random_state=78)\n",
    "model.fit(X_resampled, y_resampled)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 26,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "0.5186625492020902"
      ]
     },
     "execution_count": 26,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Calculate the balanced accuracy score\n",
    "y_pred = model.predict(X_test)\n",
    "balanced_accuracy_score(y_test, y_pred)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 27,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "array([[  50,   37],\n",
       "       [9199, 7919]], dtype=int64)"
      ]
     },
     "execution_count": 27,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Display the confusion matrix\n",
    "confusion_matrix(y_test, y_pred)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 28,
   "metadata": {},
   "outputs": [
    {
     "name": "stdout",
     "output_type": "stream",
     "text": [
      "                   pre       rec       spe        f1       geo       iba       sup\n",
      "\n",
      "  high_risk       0.01      0.57      0.46      0.01      0.52      0.27        87\n",
      "   low_risk       1.00      0.46      0.57      0.63      0.52      0.26     17118\n",
      "\n",
      "avg / total       0.99      0.46      0.57      0.63      0.52      0.26     17205\n",
      "\n"
     ]
    }
   ],
   "source": [
    "# Print the imbalanced classification report\n",
    "print(classification_report_imbalanced(y_test, y_pred))"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "## Combination (Over and Under) Sampling\n",
    "\n",
    "Note: Used a random state of 1 for each sampling algorithm to ensure consistency between tests"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 29,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "Counter({'high_risk': 68460, 'low_risk': 62011})"
      ]
     },
     "execution_count": 29,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Resample the training data with SMOTEENN\n",
    "# Warning: This is a large dataset, and this step may take some time to complete\n",
    "smote_enn = SMOTEENN(random_state=0)\n",
    "X_resampled, y_resampled = smote_enn.fit_resample(X, y)\n",
    "\n",
    "Counter(y_resampled)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 30,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "LogisticRegression(random_state=1)"
      ]
     },
     "execution_count": 30,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Train the Logistic Regression model using the resampled data\n",
    "model = LogisticRegression(solver='lbfgs', random_state=1)\n",
    "model.fit(X_resampled, y_resampled)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 31,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "0.6411168320501509"
      ]
     },
     "execution_count": 31,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Calculate the balanced accuracy score\n",
    "y_pred = model.predict(X_test)\n",
    "balanced_accuracy_score(y_test, y_pred)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 32,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "array([[  61,   26],\n",
       "       [7171, 9947]], dtype=int64)"
      ]
     },
     "execution_count": 32,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "# Display the confusion matrix\n",
    "confusion_matrix(y_test, y_pred)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 33,
   "metadata": {},
   "outputs": [
    {
     "name": "stdout",
     "output_type": "stream",
     "text": [
      "                   pre       rec       spe        f1       geo       iba       sup\n",
      "\n",
      "  high_risk       0.01      0.70      0.58      0.02      0.64      0.41        87\n",
      "   low_risk       1.00      0.58      0.70      0.73      0.64      0.40     17118\n",
      "\n",
      "avg / total       0.99      0.58      0.70      0.73      0.64      0.40     17205\n",
      "\n"
     ]
    }
   ],
   "source": [
    "# Print the imbalanced classification report\n",
    "print(classification_report_imbalanced(y_test, y_pred))"
   ]
  }
 ],
 "metadata": {
  "kernelspec": {
   "display_name": "mlenv",
   "language": "python",
   "name": "mlenv"
  },
  "language_info": {
   "codemirror_mode": {
    "name": "ipython",
    "version": 3
   },
   "file_extension": ".py",
   "mimetype": "text/x-python",
   "name": "python",
   "nbconvert_exporter": "python",
   "pygments_lexer": "ipython3",
   "version": "3.7.15"
  }
 },
 "nbformat": 4,
 "nbformat_minor": 2
}