An analysis report by Paisabazaar found that consumers between the ages of 35 and 40 are the healthiest, while those under 25 are the least healthy.
“Over the past 6+ years, over 2.7 million consumers have accessed their free credit score and report on the Paisabazaar platform. By analyzing data from its large consumer base, Paisabazaar has launched the 2nd edition of its ‘Making India Credit Fit’ analytics report,” a statement from Paisabazaar said.
Paisabazaar Analysis Report
-According to the report, only 28% of consumers under the age of 25 have a credit score above 750, generally considered the benchmark for a strong credit score.
-On the other hand, 42% of consumers between the ages of 35 and 40 maintain a credit score above 750.
-The main reason behind this, according to Paisabazaar, could be that the need to access credit for life goals like buying a house is most common at this life stage.
75% of new credit score consumers come from Tier 2 and 3 cities: Insights report from Paisabazaar
– Showing a clear trend of increasing credit awareness in the country, the report also showed a surge in the number of consumers from Tier 2 and Tier 3 cities checking their free credit score from the Paisabazaar platform.
-According to the Insights report, in 2016, only 34% of consumers who checked their free credit score from the Paisabazaar platform were from outside major metropolitan areas.
– Currently, over 75% of new Paisabazaar consumers who check their credit score are from Tier 2 and Tier 3 cities and towns.
– However, consumers in metros continue to be healthier, with almost 43% of customers in metropolitan cities having a credit score above 750. On the other hand, around 36% of Paisabazaar customers in non-metros maintain a credit score of 750 and above.
Commenting on the report, Radhika Binani, Product Manager, Paisabazaar said, “Conversations with customers made us realize that large sections needed to deepen their understanding of credit scoring. Simply free access to their credit report was not enough. The language was a roadblock, especially beyond the subways. Providing a jargon-free credit report in a language of their choice has been a great catalyst for better credit awareness.
Regular monitoring of key credit health score: Paisabazaar
According to Paisabazaar, continuous monitoring of credit score over a period of time through its platform has helped consumers work towards a strong credit score and enabled them to access credit. According to the Paisabazaar report, more than 45% of consumers, who checked their credit score through its platform, subscribed to at least one credit product within 6 months.
The report also revealed that more than 52 lakh Paisabazaar consumers have significantly increased their credit score through regular monitoring and responsible credit behavior. Also, more than 65 lakh consumers, who checked their free credit score from its platform and had DPD (Days Past Due) in their report, cleared their debt in the last 4 years.
“Like your personal health, your credit health also depends on taking the right steps. While knowing and monitoring your score is the first step towards accessing credit, it is also crucial, especially for those with low scores, to understand what went wrong for them and take corrective action. to improve and strengthen their credit score. Paisabazaar is focused on being a catalyst for adapting credit in India,” added Radhika Binani.