Let’s take a close look at the takeaways from a heartening consumer insight around credit reports performed by BankBazaar.
BankBazaar.com, India’s leading personal finance marketplace, shared a heartening consumer insight around credit reports. Let’s explore some of the key inferences made from the study.
The study showed that about 68% of the people who checked their Credit Score on BankBazaar have a score of above 750. This is a sure sign of the growing financial literacy and credit worthiness among Indian millennials. Another inference from the study was that a vast majority—almost 70% of those checking their scores are under the age of 40. This clearly shows that young India is credit savvy, fiscally responsible and is actively taking ownership of their credit worthiness.
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BankBazaar receives close to 30M visits every month on an average, making it one of the most visited personal finance sites in the country. Since January 2017, the company has been providing consumers with their free credit report in partnership with the credit bureau Experian. In the last one year alone, BankBazaar marked a 111% increase in the number of people accessing their Credit Scores. Interestingly, a sizeable percentage of these people are seen to have checked their score on a monthly basis, thus indicating that consumers are increasingly taking essential measures to build a solid financial footing and maintain their scores over time.
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BankBazaar co-founder and CEO Adhil Shetty said, “Credit report is the first check point for a lender while considering a loan approval. So, we have worked hard to educate customers about the importance of having a good credit history. For close to three years now, we have been helping customers check, track, and build their Credit Score so that they have a healthy financial life. The high number of customers with high Credit Scores indicates that customers are not only becoming more vigilant towards monitoring their credit report but are also managing their financial life in the right way.”
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Close to 77% of customers who have accessed and downloaded their Experian credit report from the BankBazaar platform have a Credit Score above 700. In addition, more than 68% of customers have a score of 750 or more, and 38% have a score of 800+. The percentage of customers with a comparatively “risky” Credit Score of less than 650 was around 13%.
The report revealed that the younger generation accounted for the maximum number of checks, with almost 39% of those who checked the score falling in the age group of 31-40. On the other hand, about 28% were in the age bracket of 26-30. According to Shetty, “More than 70% of the people checking their credit report are younger than 40. This is also borne out by the BankBazaar Aspiration Index, which revealed that more than 90% of the people between the ages of 23 and 45 are comfortable taking credit liabilities to fulfil their aspirations and had some form of credit. With growing career choices, financial independence, and shift in societal norms, the younger generation is increasingly daring to dream big, and data shows that they are doing it the smart way.”
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Customers accessing the Credit Score were also spread across geographies. The study revealed that 45% of those who checked their score were residing outside the top 10 cities. Shetty says, “While metros continue to lead in terms of credit awareness, there is a steady increase in the non-metro cities as well. Today, tier-2 and tier-3 cities are increasingly confident about transacting in the digital space and have new alternatives to access credit, giving them a growing edge over their tier-1 counterparts.”
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BankBazaar hosts the widest range of financial products from over 50 of the biggest public and private sector banks and NBFCs in India. It sees close to 30M visits every month on an average. The company raised USD 110M through funding from investors such as Amazon.com, Experian, Fidelity Growth Partners, Mousse Partners, Sequoia Capital and Walden International.
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