According to a report by credit score monitoring platform OneScore, the average credit score of Indians in the financial year 2021-22 was 715.
“While a credit score of 715 is considered reasonable, there is substantial room for improvement,” OneScore said in a statement.
The report ‘Credit Literacy Index’ highlights the findings of a study conducted among over 9 million users on OneScore’s platform across the country.
According to the study, about 63% of the respondents in the study were found to have a score between 300 and 747. This number has not changed since the financial year 2020-21.
“Kerala ranks highest in terms of credit-conscious, self-monitoring millennials with an average credit score of 726, followed by Gujarat, Chandigarh and Delhi with an average credit score above 720. Whereas, Bihar and Assam were at the bottom. Around 700 on the list with an average credit score,” the company said in its statement.
The report highlights that consumers are increasingly becoming more credit-conscious and are actively taking steps to manage their credit health, especially Millennials and Gen Zs. “The platform (OneScore) observed that over 56.8% of millennials actively monitored their credit scores in FY12, 48% in FY12. Whereas, in terms of Gen Z consumers actively monitoring their credit scores, the platform saw a growth of over 2.5 times in FY11, from 7.1% in FY11 to 19.1% in FY2012. happened.”
“Combining the largest workforce in the country, Millennials and Gen Zs are revolutionizing the way India consumes credit. But with seamless access to credit and rising disposable income, the group is becoming increasingly credit conscious,” said Anurag Sinha, CEO and co-founder, OneScore and OneCard.
The growing credit consciousness can also be gauged from the 26% drop seen in late or deferred payments among Millennials and Gen Z audiences on the platform in FY 2021-22. Additionally, over 83% of Millennial and Gen Z users paid their credit card bills on time in FY 2021-22, up from 77% in FY 2020-21.
“Millennials and Gen Zs have a reputation for not being the most savvy with their finances, however, this trend can be seen to be changing rapidly. There is a growing awareness of the benefits of a good credit score and responsible credit management. , which enables one to take advantage of benefits such as increased access to pre-approved loans, lower interest rates and longer tenure among others.”
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