Importance of credit score for millennials
India Today
The credit score which is developed on the basis of a credit report contains different financial information such as the borrower's spending and income patterns, number of transactions, other borrowing information.
According to a TransUnion CIBIL survey, credit score awareness among self-monitoring Indian millennials increased by 58 per cent in the past few years. Millennials are amongst the most credit-conscious consumer categories in the country, according to the report.
They keep track of their credit ratings on a regular basis and have a CIBIL Score of 740 on average, which is a very good score to maintain.
The credit score which is developed on the basis of a credit report contains different financial information such as the borrower's spending and income patterns, number of transactions, other borrowing information, and so on. This information is extracted for a period of three months in the report.
Apart from the applicants' credit ratings, these are standard reports that each financial institution uses throughout the loan acceptance process. During the loan registration process, the fintech lender will access these credit records to know if an individual has a good track record and the loan repayment potential.
Millennials today understand the importance of having credit cards and acquiring loans with easy EMIs to fulfill their needs without facing extra stress. However, to acquire a credit card or loan, it is important that you have a good score.Below we discuss on points why it is essential to have an understanding of your credit score-
The information given by lenders and card issuers about your loan and credit card repayments is used by credit bureaus to calculate your credit score. This necessitates you checking your credit report on a regular basis, especially before applying for any type of credit, be it a loan or a credit card.
Checking your credit report ahead of time can provide you with a clearer view of your credit score, allowing you to take remedial action if necessary.
