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Consumers in the age group of 35-40 years are the most credit healthy, while those below 25 years seem to be the least credit healthy, according to a recent report by Paisabazaar.com, a digital marketplace for consumer credit.

“While those below 25 years seem to be the least credit healthy with only 28% with a strong credit score, consumers in the age group of 35 to 40 are the most credit healthy, with nearly 42% maintaining credit score above 750," stated the report.

However, it saw a steady rise in credit awareness with age, as 36% of those between 25 to 30 have a credit score of over 750. "It further improves to 40% for consumers between 30 and 35, peaking at 42% for the 35-40 age bracket," it added.

This could be because the need to access credit is highest at the life stage between 30 and 40, for life goals like buying a house, as per the report.

The report also highlighted that the consumers from metros are more credit healthy than those in non-metros.

“While we see rising credit awareness among consumers from non-metro cities, they are still behind, though slightly, in terms of credit health from their counterparts residing in metro cities. Nearly 43% of the customers from metro cities have a credit score above 750, whereas people from non-metros have around 36% customers maintaining a credit score of 750 and above," pointed out the report.

The report found that 40% of people in metro cities of Delhi-NCR, Mumbai, Kolkata, Chennai and Bengaluru are maintaining a good credit score of 750 and above.

“Bengaluru has 44% of consumers maintaining a healthy credit score of 750 and above, which is the highest among metros, closely followed by Delhi/NCR and Mumbai having ~41% customers each with 750 and above credit score."

Almost three-fourth of the new customer base, who are checking the credit score on the platform, as per the company are from Tier 2 and Tier 3 cities. The report stated that there is a rising number of consumers from Tier 2 & 3 cities visiting Paisabazaar to check their credit scores and that participation from Tier 3 cities have tripled in the last 5 years.

“Conversations with customers made us realize that large sections needed to deepen their understanding of credit score. Mere access to their credit report for free was not enough. Language was a road-block, especially beyond the metros. By giving them their credit report in a jargon-free fashion in a language of their preference has been a great enabler towards higher credit awareness and inclusiveness," said Radhika Binani, Chief Product Officer at Paisabazaar.com.

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