Your question is Credit Default Class Imbalance. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
How would you handle class imbalance in a credit default prediction model?
Discuss the practical modeling workflow, including data splitting, resampling or cost-sensitive learning, probability calibration, threshold selection, and evaluation. Explain how you would avoid leakage and choose an operating point based on the relative costs of missed defaults and false positives.