Millennials are most credit-conscious; take most loans to make these purchases

using a credit card in abroad always remember these 5 things 

The millennials also make efforts towards improving their credit scores. Image: Reuters

Indian millennials are one of the most credit-conscious consumer segments with the growth of self-monitoring millennials witnessing a massive increase by 58% between 2016 and 2018. On the other hand, credit-conscious non–millennial also saw a surge by 14% during the same period, a recent study by TransUnion CIBIL said. While millennials, the people born between the early 1980s to the late 1990s, have high appetite for credit, they are also proactive in monitoring their credit scores regularly and have an average CIBIL Score of 740. Over half of these self-monitoring millennials population is concentrated in regions such as Maharashtra, Karnataka, Tamil Nadu, Uttar Pradesh and Delhi collectively, the study said.

Further, Gujarat’s millennial population is the most credit-conscious with an average score of 747. Following this is Haryana, where the average credit score stands at 743, and Rajasthan at 742. On the other hand, Delhi’s average credit score stood at the lowest at 734 and Tamil Nadu’s at 736.

This is what millennials take credit for

Indian millennials have a marked preference for unsecured loans and credit cards, personal loans and consumer durable loans contributed to 72% of all loans availed by this consumer segment, according to TransUnion CIBIL. Among this, credit cards topped the millennial chart for loans as of June 2019 and least credit was taken for agriculture and education.

Further, those who took secured loans, chose two wheeler and auto loans. This jointly contributed to 9% of the total credit pie.

“Many lenders have started reaching out to this demographic with relevant product offerings. Since many millennials are at the beginning of their credit journey, reaching out to them at the right time will help lenders engage with them throughout their credit lifecycle,” Sujata Ahlawat, vice-president and head-direct to consumer interactive, TransUnion CIBIL, said. The millennials also make efforts towards improving their credit scores. According to CIBIL findings, within six months of checking their score, 51% of millennials with a score below 700 improved their score by an average of 65 points.