A survey conducted by credit information agency CIBIL has revealed that 92 per cent of Indian credit card holders pay their minimum monthly dues compared to Canadians 88 per cent, Americans 89 per cent and South Africans 44 per cent. It also showed that Indians seem more aware of the penalties that come with non-payment of credit dues.
When it came to awareness on credit card billing metrics, about 33 per cent Indians were uncertain about the importance or benefits of paying more than the minimum due. Harshala Chandorkar, COO, TransUnion CIBIL, said, “Our analysis suggests consumers who pay more than their minimum due on credit cards are less likely to go delinquent.” The survey was conducted across eight metro cities with 1,100 consumers in the country. Among the eight metros surveyed, Delhiites use credit cards the most- about 93 per cent of respondents use their credit card for online and offline retail shopping.
Card usage was seen to be higher in cities like Delhi, Ahmedabad, Pune, and Mumbai as compared to Kolkata, Bangalore, Hyderabad, and Chennai. On a positive note, about 78 per cent of respondents usually pay off the full balance. When it came to financial literacy, about 90 per cent of respondents knew that non-payment would affect their credit history and scores, which would in turn, affect their borrowing capability. Chandorkar said, “How each of the data points interacts with others gives further insights into credit behaviour. For example, while a traditional CIBIL Report may tell you a consumer has Rs 30,000 in credit card debt, one using trended data would show you whether they have built up or paid down that balance over time.”
