Karnataka reported an average credit score of 713 in 2022: Report

Bengaluru: OneScore, tech-based credit score monitoring platform, which enables one to keep a regular check on their credit health, on Thursday said that millennials and Gen Z consumers are now becoming increasingly conscious of their credit and money management habits. The report, christened the "Credit Literacy Index', showcases the results of a study conducted among more than 9 million users on OneScore's platform across the country. According to this report, more than 46% of millennial and Gen Z users reported an improved credit score in FY22.

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. Karnataka reported an average credit score of 713. Whereas, Bihar and Assam featured at the bottom of the list with an average credit score hovering at around 700.

The report highlighted that consumers are becoming more credit-conscious and taking an active role in managing their credit health. Millennial and Gen Z cohorts especially are actively undertaking self-monitoring of their credit score. The platform witnessed that over 56.8% of millennials actively monitored their credit score in FY22 vis-à-vis 48% in FY21. Whereas, in the case of Gen Z consumers actively monitoring their credit score, the platform witnessed a growth of over 2.5 times, from 7.1% in FY21 to 19.1% in FY22. The platform also stated that it witnessed a 16% jump in the average number of times millennials monitored their credit score annually.

The platform observed that the average credit score of users was almost unchanged at 715 vis-à-vis 714 in FY21. The data indicated that there was an impending need for users to up the ante in terms of more responsible credit behaviour, to improve their credit score. While a credit score of 715 is considered fair, there is enough room for improvement. It also stated that the number of consumers having a mediocre score, i.e., score range of 300-747 remained stagnant at approximately 63% in FY21 and FY22.

Speaking on the trends, One Score and One Card, CEO and Cofounder, Anurag Sinha said, "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. There is growing awareness of the benefits of a good credit score and responsible credit management among the cohort which enables one to avail benefits such as increased access to pre-approved loans, lower interest rates, and longer tenures among others."

Launched in July 2019, OneScore helps customers get free, unbiased and privacy-guaranteed access to their credit score. Its AI-based score planner offers detailed, customised insights into one's credit score, which helps one to improve and maintain an above-average credit score. OneCard offers premium metal credit cards to all its users. In the recent Series C funding round, OneScore and OneCard, part of Pune-based FPL Technologies, raised funding of $75 million taking their valuation to $750 million.