Millennials and Gen Z consumers are now becoming more aware of their credit and money management practices, according to OneScore, India's premier tech-based credit score monitoring software, which enables one to maintain a frequent check on their credit health.
Released on September 14th, the report, titled as the "Credit Literacy Index," presents the findings of a survey taken among the platform's more than 9 million users nationwide. According to this report, more than 46% of millennial and Gen Z users reported an improved credit score in FY22.
The report emphasized how customers are actively maintaining their credit health and are becoming more credit savvy. Particularly the Gen Z and Millennial generations are actively engaging in self-monitoring of their credit scores.
The platform observed that, compared to 48% in FY21, more than 56.8% of millennials actively monitored their credit scores in FY22. Whereas, there was an increase of nearly 2.5 times among Gen Z customers who regularly check their credit score, from 7.1% in FY21 to 19.1% in FY22.
Additionally, compared to the same period last year, there was a significant increase of 163% in the overall number of new consumers actively reviewing their scores. The survey found that the platform saw a 26% decrease in late/deferred payments among the millennial and Gen Z audiences as a result of growing credit awareness and regular monitoring of credit scores.
The study also showed that the cohort was becoming more conscious of the need of making on-time credit card payments and exhibiting responsible financial behavior. In FY22 compared to FY21, the platform saw more than 83% of millennial and Gen Z users make on-time repayments.
Anurag Sinha, CEO & Cofounder of OneScore & OneCard, commented on the trends, asserting, "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 various benefits.
In the end, the report pointed, that with an average credit score of 726, Kerala topped the list of states with millennials who are credit-conscious and self-aware, followed by Gujarat, Chandigarh, and Delhi, all of which had average credit scores above 720. With an average credit score of roughly 700, Bihar and Assam were near the bottom of the list.