Yearly Variable Factor

This section tells about the yearly variable factor under the credit scoring model.

Ongoing Credit Data follows an yearly variable factor which is a factor which enables an increase in the score weightage of the ongoing credit data factor in terms of overall score with time. Since, ongoing credit data carries 10% allocation to the credit score which is 100 points, this proportion of score would gradually increase by 100 points annually with more credit data acquired each year.

This means that, post the formation of DCA, the overall score weightage of 10% would increase to 20% in the second year and 30% in the third year. The cap of this weight is kept at 300 points or 30% weightage which would be reached at the third year.

Other factors under the credit scoring model would decrease proportionally in terms of credit score weight when the yearly variable factor is made active. X- Ongoing Credit Data Weight Y- Other Credit Scoring Factor Weight

Year 1: 10% Allocation (X) : 90% Allocation (Y)

Year 2: 20% Allocation (X) : 80% Allocation (Y)

Year 3: 30% Allocation (X) : 70% Allocation (Y)

Year 4: 30% Allocation (X) : 70% Allocation (Y)