Average credit score of Indians was 715 in FY22: Report


The average credit score of Indians stood at 715 in financial year 2021-22, as per a report by OneScore, a credit score monitoring platform.

“While a credit score of 715 is considered fair, there is enough room for improvement,” OneScore said in a statement adding that this number indicates a pressing need for a more responsible credit behaviour from people.

The report ‘Credit Literacy Index’ highlights findings from a study conducted among over 9 million users on OneScore’s platform across the country.

About 63% respondents in the study were found to have a score between 300 and 747, as per the study. This number hasn’t changed since the financial year 2020-21.

“Kerala ranked highest when it comes to credit-conscious, self-monitoring millennials with an average credit score of 726, followed by Gujarat, Chandigarh and Delhi with an average credit score that was above 720. Whereas, Bihar and Assam featured at the bottom of the list with an average credit score hovering at around 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 country’s largest workforce, millennials and Gen 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 growing increasingly credit-conscious,” said Anurag Sinha, CEO and co-founder, One Score and One Card.

Rising credit consciousness can also be inferred from 26% decline seen in late or deferred payments among the millennial and Gen Z audiences on the platform in FY 2021-22. Additionally, over 83% of millennial and Gen Z users were found to have made timely payments of their credit card bills in FY 2021-22, up from 77% in FY 2020-21.

“Millennials and Gen Z have a reputation for not being the savviest with their finances, however, this trend can be seen to be rapidly changing. There is growing awareness of the benefits of a good credit score and responsible credit management among the cohort which enables one to avail benefits such as increased access to pre-approved loans, lower interest rates, and longer tenures among others.”

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