Monitoring Of Credit Scores By Self Surges To 73% In 2023: Report
The self-monitoring of credit scores by Indians has increased by 73 per cent in 2023, according to a report by credit bureau Transunion Cibil. This trend of credit monitoring helps people access new borrowing opportunities and manage their debt better.
A new global study by the credit bureau has found that monitoring credit leads to better credit profiles, greater access to credit and improved debt management, depending on the intent of consumers who monitor credit. In India, 92 per cent of surveyed consumers believe that it is important to monitor their credit, with nearly two-fifths (39 per cent) saying it is extremely important. This indicates that consumers in India are highly aware of the benefits of credit monitoring, which is likely driving the surge in monitoring activity in recent years.
According to a survey, the most common reasons for Indian consumers to sign up for credit monitoring services were to improve their cibil score (38 per cent), protect against fraud (34 per cent), and learn about credit offers they qualify for (29 per cent). After using such services for some time, consumers reported additional benefits, such as learning how to monitor and manage their cibil score (43 per cent), getting better credit offers (43 per cent), learning how to make regular payments (40 per cent), gaining visibility to changes on their credit report (33 per cent) and paying down debt (28 per cent).
Bhushan Padkil, the senior director and head of Consumer Interactive (direct-to-consumer) India, said, "India's growth story gets a strong foundation with improved consumer awareness about credit management as revealed in this study, which shows a remarkable increase in consumers monitoring their credit report and improving their score after accessing it. Our study measures the importance of credit education and quantifies the benefits that credit monitoring consumers experience."
