As banking markets in developing countries are maturing, banks face competition not only from other domestic banks but also from sophisticated foreign banks. Given the substantial growth of consumer credit and increased regulatory attention to risk management, the development of a well-functioning credit assessment framework is essential. As part of such a framework, we propose a credit scoring model for vietnamese retail loans. First, we show how to identify those borrower characteristics that should be part of a credit scoring model. Second, we illustrate how such a model can be calibrated to achieve the strategic objectives of the bank. Finally, we assess the use of credit scoring models in the context of transactional versus relationship lending.