OneScore, an Indian technology-based credit score monitoring platform that regularly monitors one’s credit health, said today that millennial and Gen Z consumers are increasingly more aware of their credit and money management habits. The report, called “Credit Literacy Index”, presents the results of a study of more than 9 million users on the OneScore platform across the country. According to this report, over 46% of Millennials and Gen Z users reported an improvement in their credit score in FY22.
The report highlighted that consumers are increasingly credit conscious and taking an active role in managing their credit health. Millennials and Gen Z cohorts, in particular, are actively undertaking self-monitoring of their credit score. The platform found that more than 56.8% of millennials were actively monitoring their credit score in FY21, compared to 48% in FY21. Whereas, in the case of Gen Z consumers actively monitoring their credit score, the platform grew more than 2.5x from 7.1% in FY21 to 19.1% in FY22. The platform also said it witnessed a 16% increase in the average number of times millennials monitored their credit score each year.
Additionally, there was a massive 163% increase in the total number of new consumers actively checking their scores in FY22 compared to the same period last year. The study observed that due to growing credit awareness and regular monitoring of credit scores, the platform saw a 26% drop in late/deferred payments among millennial audiences and of Generation Z.
The study also highlighted a growing awareness among the cohort of paying credit card bills on time, thus depicting positive financial behavior. The platform saw over 83% of Millennials and Gen Z users making timely refunds in FY21, up from 77% in FY21.
The platform observed that the average user credit score was almost unchanged at 715 from 714 in FY21. The data indicated that there was an imminent need for users to increase the stake. terms of more responsible credit behavior, in order to improve their credit score. Although a credit score of 715 is considered fair, there is ample room for improvement. He also said the number of consumers with a poor score, meaning a score range of 300 to 747, remained flat at around 63% in FY21 and FY21.
Kerala ranked first for credit-conscious and self-monitored millennials with an average credit score of 726, followed by Gujarat, Chandigarh and Delhi with an average credit score above 720. While Bihar and Assam were at the bottom of the list with an average credit score hovering around 700.
Speaking of trends, Anurag Sinha, CEO and Co-Founder, OneScore and OneCard, said, “Comprising the largest workforce in the country, Millennials and Generation Z are driving a paradigm shift in the way India consumes credit. But even with unhindered access to credit and rising disposable income, this cohort is increasingly credit-conscious. Millennials and Generation Z have a reputation for not being the most savvy when it comes to finances, but you can see this trend changing rapidly. There is a growing awareness of the benefits of a good credit score and responsible credit management among the cohort, which allows for the enjoyment of benefits such as increased access to pre-approved loans, lower interest rates and longer terms, among others.
“Besides self-monitoring and checking credit scores regularly, they proactively implement simple actions in their daily lives, such as conscious spending, timely and full payments, etc. to improve their credit score. At OneScore, through personalized insights and a seamless, mobile-focused digital interface, we’ve driven credit education and awareness to empower our consumers to change their credit behavior and plan for it. their future credit products”, he added.
Launched in July 2019, OneScore helps customers get free, unbiased and guaranteed access to their credit score. Its AI-powered score planner offers detailed and personalized information about one’s credit score, which helps improve and maintain an above-average credit score. OneCard offers premium metal credit cards to all its users. In the recent Series C funding round, OneScore and OneCard, part of Pune-based FPL Technologies, raised $75 million in funding, bringing their valuation to $750 million.