46% millennials report improved credit score in FY22: OneScore study

OneScore, an Indian tech-based credit score monitoring platform, which enables one to keep a regular check on their credit health, on September 14 said millennials and Gen Z consumers are now becoming conscious of their credit and money management habits.

A report titled Credit Literacy Index reveals the results of a study conducted among more than 9 million users on OneScore’s platform across the country.

According to the report, more than 46 percent of millennial and Gen Z users reported an improved credit score in FY22.

Over 56.8 percent of millennials actively monitored their credit score in FY22 vis-à-vis 48 percent in FY21.  On the other hand, with Gen Z consumers actively monitoring their credit score, the platform witnessed a growth of over 2.5 times, from 7.1 percent in FY21 to 19.1 percent in FY22.

The platform also stated that it witnessed a 16 percent jump in the average number of times millennials monitored their credit score annually.

Additionally, there was a massive jump of 163 percent in overall new consumers actively checking their scores in FY22 vis-à-vis the same period last year.

The study observed that the platform witnessed a 26 percent fall in deferred payments among the millennial and Gen Z audiences.

It also stated that the number of consumers having a score range of 300-747 remained stagnant at approximately 63 percent in FY21 and FY21.

The credit score monitoring platform stated in a press release, that 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, it added.

Speaking on the trends, Anurag Sinha, CEO & Cofounder, OneScore and OneCard, said, “Comprising the country’s largest workforce, millennials and Gen Z are driving a paradigm shift in the way India consumes credit."

"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," he added.