Indian credit card users are showing good repayment behaviour when it comes to paying off their monthly bills, according to a survey report by credit information firm TransUnion Cibil.
It is estimated that 9 out of 10 credit card users are aware that delay or non-payment on credit card bills negatively impacts their CIBIL Score and Report.
The survery report adds that about 92 percent of Indian credit card holders often pay a greater amount than the minimum due on their monthly credit card bills.
Cibil conducted this survey with 1,100 respondents from across 8 cities- Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Pune, Ahmedabad.
Around 93 percent of respondents use their credit cards for shopping (online / offline) payment and Delhi tops the list that has the optimal utilization and awareness of credit cards across all possible usage points.
Usage of credit card is significantly more in Delhi, Ahmedabad, Pune, Mumbai compared to Kolkata, Bangalore, Chennai and Hyderabad, although Kolkata and Chennai have the maximum 95 percent awareness level and are knowing of non-repayment.
Harshala Chandorkar, Chief Operating Officer of TransUnion CIBIL, said, “The analysis conducted on long-term payment behaviour suggests that consumers who pay more than their minimum payment due on credit cards are less likely to go delinquent. Behaviour on credit card payments has an impact on the overall credit performance of the individual and can provide deep insights for credit decisioning. Such findings derived from trended data could help improve risk assessment for lenders while providing higher opportunities to consumers with lower risk profile across retail lending portfolios.”
Additionally, TransUnion conducted a similar research across global markets and concluded that India ranks highest in the percentage of credit card holders that often make payments in excess of their minimum due on their revolving debts each month as compared to other countries included in the study.Even as 90 percent are aware that non-payment negatively impacts the credit history and score, yet a significant 33 percent of respondents are uncertain about the importance or benefits of paying more than the minimum amount due on their credit card bills.