Indians’ average credit score was 715 in FY22: report


The average Indian credit score stood at 715 in the financial year 2021-22, according to a report by OneScore, a credit score monitoring platform.

“While a credit score of 715 is considered fair, there is ample room for improvement,” OneScore said in a statement, adding that the figure indicates an urgent need for more responsible credit behavior from the part of people.

The Credit Literacy Index report highlights the results of a study of more than 9 million users on the OneScore platform across the country.

About 63% of respondents in the study scored between 300 and 747, according to the study. This number has not changed since fiscal year 2020-21.

“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. So that Bihar and Assam were at the bottom of the list with an average credit score hovering around 700,” the company said in its statement.

The report highlighted that consumers are increasingly credit conscious and are actively taking steps to manage their credit health, especially Millennials and Gen Z. “The platform (OneScore) found that more than 56, 8% of Millennials were actively monitoring their credit score in FY22, 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.”

“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,” said Anurag Sinha, CEO and co-founder of One Score and One Card.

The growing credit consciousness can also be inferred from the 26% drop seen in late or deferred payments among Millennials and Gen Z audiences on the platform in fiscal year 2021-22. Additionally, it was found that more than 83% of Millennials and Gen Z users made on-time payments of their credit card bills in fiscal year 2021-22, compared to 77% in of the 2020-21 financial year.

“Millennials and Generation Z have a reputation for not being the most savvy when it comes to finances, but this trend can be seen as rapidly changing. There is a growing awareness of the benefits of a good credit standing and responsible credit management among the cohort, which allows for benefits such as increased access to pre-approved loans, lower interest rates and longer terms, among others.

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