Current Affairs · Credit Scoring Analytics
In consumer credit scoring algorithms, if Borrower X had a 60-day Days Past Due (DPD) event 3 years ago but maintained a clean record since, whereas Borrower Y experienced a 30-day DPD event 2 months ago, what is the expected impact on their credit scores?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Borrower X will face zero penalty as scoring models discard payment history older than 12 months.
- 2Both will face an identical score drop because any delinquency above 30 days is treated equally.
- 3Borrower Y will suffer a more significant score drop because recency of delinquency is a stronger predictor of near-term risk.✓
- 4Borrower X will have a lower score because 60 days overdue is inherently worse than 30 days.
Correct answer
Borrower Y will suffer a more significant score drop because recency of delinquency is a stronger predictor of near-term risk.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Current Affairs?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Credit Scoring Analytics MCQs →Want more practice questions on Credit Scoring Analytics?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Current Affairs · Credit Scoring Analytics