Nearly half of Indian consumers have never reviewed their credit score, exposing them to silent loan rejections, higher interest rates and exclusion from affordable financial products, according to a new study by ZET.
The report, “State of Credit Score Awareness In India,” is based on a survey of more than 1,000 respondents, supported by inputs from credit bureaus and financial planners. It found that 45 percent of Indians had either never checked their score or were unsure if they had done so. About 30 percent said they had experienced a loan or credit card rejection because of weak or absent credit history, with little or no explanation provided.
Credit scores, which range from 300 to 900, reflect repayment record, credit mix, age of accounts and outstanding balances. A score above 750 is generally regarded as good and can enable faster approvals, cheaper loan rates, and even reduced insurance premiums. Yet the survey revealed persistent gaps in understanding. One in four respondents did not know which institutions generate credit scores. A quarter incorrectly linked scores to salary levels, and 58 percent believed, wrongly, that checking their own score could lower it. Only two-thirds knew that 750 is the benchmark for strong credit.
The findings also pointed to demographic divides. Men were more likely to monitor their credit history, while women were more likely to underestimate their financial eligibility, suggesting a wider confidence gap. First-time borrowers were among the most vulnerable, with lack of credit history emerging as a leading cause of rejection.
The study highlighted real-world costs of this lack of awareness. In one case, a shop owner in Nagpur paid more than ₹8.5 lakh in additional home loan interest because of a poor credit score. In another, a young doctor in Mangaluru was denied her first credit card solely because she had no borrowing track record.
“Credit scores decide who gets access to opportunity in India, yet for millions this number remains invisible or misunderstood. Our study shows that the challenge is not intent, but information. By combining survey insights with perspectives from financial planners and credit bureaus like Experian, we’ve been able to highlight both the myths and the structural gaps that hold people back.,” said Manish Shara, Co-founder & Chief Executive of ZET.
The report stresses that credit awareness now extends beyond loans and cards. In developed markets, scores are already being used to determine insurance costs, job opportunities and financial reputation. In India, some state-owned banks have started incorporating credit scores into recruitment processes. As the country’s financial system deepens, the implications of not knowing or misunderstanding one’s score are expected to grow.
