Average credit score rating of Indians was 715 in FY22: Report

The common credit score rating of Indians stood at 715 in monetary yr 2021-22, as per a report by OneScore, a credit score rating monitoring platform.

“While a credit score rating of 715 is taken into account honest, there’s sufficient room for enchancment,” OneScore stated in an announcement including that this quantity signifies a urgent want for a extra accountable credit score behaviour from folks.

The report ‘Credit Literacy Index’ highlights findings from a examine carried out amongst over 9 million customers on OneScore’s platform throughout the nation.

About 63% respondents within the examine had been discovered to have a rating between 300 and 747, as per the examine. This quantity hasn’t modified for the reason that monetary yr 2020-21.

“Kerala ranked highest relating to credit-conscious, self-monitoring millennials with a mean credit score rating of 726, adopted by Gujarat, Chandigarh and Delhi with a mean credit score rating that was above 720. Whereas, Bihar and Assam featured on the backside of the checklist with a mean credit score rating hovering at round 700,” the company said in its statement.

The report highlighted that consumers are increasingly becoming more credit-conscious and actively taking steps to manage their credit health, especially millennials and Gen Zs. “The platform (OneScore) witnessed that over 56.8% of millennials actively monitored their credit score in FY22 vis-à-vis 48% in FY21. Whereas, in the case of Gen Z consumers actively monitoring their credit score, the platform witnessed a growth of over 2.5 times, from 7.1% in FY21 to 19.1% in FY22.”

“Comprising the nation’s largest workforce, millennials and Gen Z are driving a paradigm shift in the way in which India consumes credit score. But even with unhindered entry to credit score and rising disposable earnings, this cohort is rising more and more credit-conscious,” stated Anurag Sinha, CEO and co-founder, One Score and One Card.

Rising credit score consciousness will also be inferred from 26% decline seen in late or deferred funds among the many millennial and Gen Z audiences on the platform in FY 2021-22. Additionally, over 83% of millennial and Gen Z customers had been discovered to have made well timed funds of their bank card payments in FY 2021-22, up from 77% in FY 2020-21.

“Millennials and Gen Z have a popularity for not being the savviest with their funds, nonetheless, this development could be seen to be quickly altering. There is rising consciousness of the advantages of a superb credit score rating and accountable credit score administration among the many cohort which allows one to avail advantages comparable to elevated entry to pre-approved loans, decrease rates of interest, and longer tenures amongst others.”

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