Most urban Indians check their credit score regularly: Survey

The survey results suggest that generally speaking, urban Indian consumers worry about achieving or maintaining good or excellent credit scores – a score of 750 or higher - even though they don't necessarily know the way it really is used.

Noida: As opposed to the general perception that Indians don’t check their credit history regularly, the latest survey by TransUnion CIBIL has revealed that most urban Indians achieve this regularly.

TransUnion recently surveyed 1,002 urban consumers in India about their credit and habits that are financial. The outcomes of the survey indicate that nearly three quarters (74 percent) of consumers who took the survey check their credit history at the very least twice a year.

Respondents reported several motivations for checking their credits score. Nearly a third (29 percent) of this survey participant that have checked said they did so primarily to boost it, while another 28 percent checked when preparing for taking that loan or opening a credit card that is new.

“Checking your CIBIL score and report before applying for a loan or personal lone of credit is a step that is important but that will not be the only approach to credit management,” said Hrishikesh Mehta, Vice President and Head of TransUnion CIBIL’s Direct-to-Consumer business. “To be truly financially healthy, monitoring the knowledge in your credit report should be treated as a credit health management exercise and should be achieved on a regular basis.”

The survey results declare that generally speaking, urban Indian consumers worry about achieving or maintaining good or excellent Credit scores – a score of 750 or more – even though they do not necessarily know the way it really is used.

A surprising 62 percent didn’t realize that lenders check consumer credit scores to be able to determine the regards to a loan, and 63 percent didn’t understand that mobile contract providers might use CIBIL scores to create postpaid credit limits.

The research implies that focus on credit varies demographically in India. Young urban adults are being among the most credit-vigilant in India. Nearly half (49 percent) of adults ages 18 to 24 years of age who check their credit ever scores do so primarily to be able to improve their scores, in comparison to a mere 20 percent of these ages 45 and older.

Similarly, from and between the survey participants, it appears that Indian consumers with a high income (Rs 500,000 or more) check their credit ratings more frequently than those in low-income groups. Specifically, 77 percent of middle-income consumers (Rs 500,000 to Rs 4,999,999 per year) checked their credit scores at least twice per year, weighed against 65 percent of low-income consumers (less than Rs 499,999 each year). Indians with an income of Rs 5,000,000 or higher each year are most likely percent that is(90 to check their score twice each year.

“A credit rating is a fundamental element of a consumer’s health that is financial,” said Mehta. “It can help them purchase a house, car or open a credit card, and these findings reveal a necessity for stronger credit education.”

To simply help maintain a healthy credit history and financial profile beyond simply checking fico scores and reports, Mr. Mehta supplies the following resources:

# Pay on some time in full every month: Always settle payments on time since this is among the main contributors in maintaining a credit that is healthy and history. In addition, paying the minimum monthly balance can raise the amount of interest paid, which could have a bad impact on credit. Instead, payback charge card balances along with other debts in full whenever feasible.

# Mix your credit: individuals are encouraged to have a healthy mixture of secured loans, such as the home or automobile financing, and short-term loans, such as for instance Credit cards or personal loans. Way too many loans that are unsecured be looked at negatively by lenders.

# Maintain credit that is low: A credit utilization ratio represents just how much credit you utilize from the available credit limit. Consumers who maintain a credit that is low ratio are generally regarded as more responsible to lenders.

# Be cautious with opening lines of credit: Frequently opening new personal lines of credit can negatively impact credit by signaling a need for fast cash to lenders.

# Check credit reports for inaccuracies: Review your credit file regularly and look for just about any inaccuracies into the report. If any errors or inaccurate data is included, report the errors immediately. TransUnion CIBIL offers one free credit report and scores annually.