A credit score determines your financial access, affecting loan approvals, interest rates, and long-term opportunities.
According to ZET’s new nationwide study titled “India’s Credit Score Awareness Gap: The Hidden Cost of Not Knowing,” the report draws attention to the urgent need for stronger credit literacy in the country. A credit score is a three-digit number between 300 and 900 that reflects repayment history, credit mix, credit age, and outstanding balances. Maintaining a score above 750 can mean faster loan approvals, lower interest rates, reduced insurance premiums, and even better career prospects.
Based on inputs from credit bureaus, real user stories, and a survey of over 1,000 respondents, the study highlights how myths, misconceptions, and limited financial literacy continue to lock millions out of affordable credit.
This lack of awareness has real-world consequences, from silent loan rejections to higher interest costs and risks that exclude millions from the formal credit ecosystem.
Stories such as a young doctor denied her first credit card because she had no credit history, or a shop owner who ended up paying lakhs more in home loan interest, show the real cost of not being financially prepared.
According to the study, half of Indians have never checked their credit score, with nearly 45 per cent of respondents reporting that they either never checked it or weren’t sure if they had. Around 30 per cent have faced loan or credit card rejection due to poor or missing credit scores, often without being given an explanation. One in four Indians doesn’t know who generates their credit score, and only 66 per cent are aware that a score of 750 or above is considered good, while many mistakenly believe that a score between 500 and 700 is sufficient. Additionally, 25 per cent of respondents linked credit scores to their salary or income, and one in four were unaware of who calculates the score. A persistent myth is that checking one’s own score reduces it, with 58 per cent unsure about this fact, which discourages regular monitoring. The study also highlights a gender divide, where men tend to check their scores more often, while women are more likely to underestimate their eligibility, reflecting a wider confidence gap. Lastly, lack of credit history is identified as a major reason for rejection among first-time loan and credit card applicants.
Speaking about the study, Manish Shara, Co-founder and CEO, ZET said, “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. At ZET, we are rewriting the rules of credit, making access possible for the overlooked, the new-to-credit, and the next 400 million because when people understand the system better, they can use it to their advantage.”
The study underscores that credit awareness is not just about loans or credit cards. Globally, credit scores already influence insurance premiums, job opportunities, and financial reputation. As India’s financial ecosystem matures, the implications of not knowing or misunderstanding one’s score will only grow sharper. Some public-sector banks have already begun checking candidates’ credit scores, a practice likely to grow as financial stress increasingly affects workplace performance and productivity.
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