A bank had better ration its credit if it first enters a gray system of credit information where it cannot distinguish between the low- and high-risk borrowers. As the bank keeps a long-term relationship with its borrowers the bank learns about the borrowers through time. With the help of logit model and Bayes ruIe, a bank can process customer’s credit information and build a better credit term it gives. A bank had better ration its credit if it first enters a gray system of credit information where it can not distinguish between the low- and high-risk borrowers. As the bank keeps a long-term relationship with its borrowers the bank learns about the borrowers through With the help of logit model and Bayes ruIe, a bank can process customer’s credit information and build a better credit term it gives.