According to a report, consumers aged 35 to 40 are the most financially healthy

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NEW DELHI: Consumers aged 35-40 are the most financially healthy, while those under 25 are the worst off, according to a report by Paisabazaar, a digital marketplace for consumer credit .

Over the past six years, over 2.7 million consumers have accessed a free credit score and report on the Paisabazaar platform. Analyzing data from its large consumer base, Paisabazaar has launched the second edition of its Insights report “Making India Credit Fit”.

According to the report, only 28% of consumers under 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 have a score above 750. The main reason behind this, according to Paisabazaar, could be that the need to access credit for life goals like purchasing of a house is most common at this stage of life.

About 75% of new credit score consumers come from Tier 2 and 3 cities

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 report, in 2016, only 34% of consumers who checked their free credit score on the Paisabazaar platform were from outside the top metros. Currently, over 75% of new Paisabazaar consumers who check their credit score are from Tier 2 and Tier 3 cities and towns.

“Conversations with customers made us realize that large sections needed to deepen their understanding of credit scoring. Simply having free access to their credit report was not enough. Language was a barrier, especially beyond the metros. Providing a jargon-free credit report in the language of their choice has been a great catalyst for better credit awareness,” said Radhika Binani, Product Manager, Paisabazaar.

However, Subway consumers continue to be healthier, with almost 43% possessing a credit score above 750. On the other hand, approximately 36% of non-Subway Paisabazaar customers have a rating of 750 or more.

Regular monitoring of key credit health score

According to Paisabazaar’s report, continuous credit score monitoring 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 overdue) in their report, have 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 credit adjustment in India,” added Radhika Binani.

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