Amit Agarwal, Senior Vice President – Operations & Business Development, Executive Director & Board Member at Equifax Credit Information Services, said India is witnessing a shift in credit participation, driven by digital lending and rising credit penetration across smaller cities.
He noted that the shift is not just about access to credit, but about how borrowers manage it on an ongoing basis, with credit scores reflecting real-time financial behaviour rather than static history.
He added that many first-time borrowers enter the system with limited credit history but gradually improve their profiles as repayment discipline builds over time.
Credit: Usage patterns are now a key driver of risk assessment
Lenders are evaluating how credit is used, not just whether repayments are made on time.
Agarwal pointed out that while loan enquiries do not impact scores directly, overall borrowing behaviour is closely monitored. Multiple Buy Now Pay Later (BNPL) accounts or frequent short-term borrowing can signal rising dependence on unsecured credit.
High credit card utilisation is also being tracked more closely, as it indicates reduced financial flexibility even when payments remain on schedule.
Credit: From reactive borrowing to active credit ownership
Alongside lending-side changes, borrower behaviour is also shifting, with credit monitoring becoming a routine financial habit.
According to TransUnion CIBIL’s report “CIBIL for Every Indian – Uncovering How India Owned Its Credit Journey in 2025”, India is moving from reactive credit usage to active credit ownership.
The report highlights that 183 million Indians had self-monitored their CIBIL score as of December 2025, with a 27% year-on-year rise in first-time credit monitors. It notes that nearly 45% of consumers who actively monitored their credit saw score improvement within six months, indicating a strong link between awareness and credit health.
The report also found that younger borrowers, women, and consumers in non-metro regions are leading this shift towards regular credit tracking and self-management.
How to improve your credit score
- Pay dues in full and on time
- Automating EMIs and credit card payments helps avoid missed repayments, which are quickly reflected in credit reports.
- Control credit utilisation
- Keeping usage within a moderate range helps maintain a stronger credit profile over time.
- Build and maintain credit history
- Avoid closing older credit accounts unnecessarily, as credit age remains an important factor in scoring models.
- Monitor credit regularly
The CIBIL report shows that consumers who actively track their credit profile tend to improve discipline and outcomes over time, reinforcing credit monitoring as a financial habit rather than a one-time check.
Credit: Common mistakes that continue to hurt borrowers
- Paying only the minimum due on credit cards, which increases revolving balances
- Closing old credit cards, which reduces credit history length
- Taking multiple unsecured loans in a short period
- Running consistently high credit utilisation month after month
Agarwal said such behaviours may not always trigger immediate penalties but can gradually weaken credit profiles in a data-intensive lending environment.
Outlook
With tighter unsecured lending norms from the Reserve Bank of India, lenders are relying on credit scores as the primary filter for both approvals and pricing.
At the same time, the shift toward active credit monitoring, as highlighted in the TransUnion CIBIL report, is creating a more informed borrower base—where credit decisions are guided by real-time awareness and disciplined financial behaviour.
