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CIBIL scores are becoming a non-negotiable asset for millennials and are being used in other areas such as applications for jobs. Millennials now recognize the value of using credit cards and taking out loans with low EMIs to meet their necessities without adding to their stress levels. However, having a strong CIBIL score is necessary to order to obtain a credit card or a loan, but if you’re unsure who millennials are or what practices should they follow to keep up with the CIBIL score, then this guide is for you.

People born between the 1980s and the early 2000s are referred to as Gen Y, or "millennials." Millennials are widely regarded as the most tech-savvy generation. They grew up in an era when individuals communicated mostly through email and social media. They are accustomed to doing numerous daily tasks using cell phones. 

Spending Habits of Millennials

It's no secret that millennials spend money in ways that earlier generations did not. While certain of their spending patterns may not be conducive to long-term financial stability, this generation's financial track record isn't at all bad.

Millennial spending patterns appear to reflect the generation's priorities: convenience, a preference for experiences over stuff, and a later start when it comes to housing and raising a family.

It's also difficult to study millennials’ spending patterns without taking into account external issues like increased student loan debt, reduced incomes, and even the gig economy. These variables, as well as millennials' purchasing patterns, all have an impact on the generation's financial health—and future.

They are also much more likely to keep track of their finances and have a better understanding of costs. 7 Millennials, Generation Xers, and Baby Boomers all set aside roughly 12% of their incomes for retirement savings.

How Can Millennials Achieve Ideal CIBIL Score

CIBIL is a very important part of someone's life, without which it may be difficult to achieve many aspirations such as buying a home, car, education, or having an emergency fund. According to the research, millennials are one of the most credit-conscious consumer groups in the country.

Here is a CIBIL Score Guide for Millennials:

Use your credit card carefully: A credit card is among the simplest financial instruments to obtain. A credit card nearly often follows a few months into a job. While credit cards are highly handy to use and can help you meet short-term financial needs, incorrect credit card use is quite risky.

Always spend within the limits of your salary and other commitments. It is also necessary to stick to your credit limit.

Keep debt EMI dates in mind: When you take out a loan, there is an underlying contract that obligates you to return the debt in simple monthly installments (EMI) on certain dates. Every EMI default or delay puts a record on your credit record and lowers your CIBIL score.

Take note of your credit mix: Secured credit comes in the form of loans secured by an asset such as a property or a vehicle, while unsecured credit comes in the form of credit cards or personal loans. A fair combination of both is required to maintain a decent CIBIL score. If you have a range of credit cards and loans, your credit score will reflect that.

Refrain from rolling over your credit card debt: With interest rates reaching from 30% to 40%, credit card debt is the most expensive. Rolling credit card debt over will harm your money as well as your CIBIL score.

Always be in touch with your credit score: The last and most important requirement of maintaining a good CIBIL score is checking your credit score. It is a good practice to check your credit score once in 3 to 6 months. It will give you enough time to take corrective action, if needed, to improve your CIBIL score.

Why is it Important to Know Your Credit Score

The following facts explain why it is crucial to understand your CIBIL score:-

Information about your credit account: Because your credit report comprises information on your current and bbrecently closed credit accounts, any inaccuracy or inappropriate reporting, such as inaccurate or incomplete account data for a line of credit card or an unknown credit account included on the report, can harm your credit score. As a result, keeping an eye on your CIBIL score might help you avoid making mistakes.

Repayment of credit: Your loan payment record is an important factor in determining your credit score because it showcases whether you are punctual in repaying credit card debts and loan EMIs.

As a result, if there are any mistakes on that aspect, such as missed or late payments although they weren't, might lower your CIBIL score. As a result, the above considerations explain why knowing one's CIBIL score is crucial for obtaining loans when necessary.

Better credit card or loan offers: When you use Bajaj Markets to check your CIBIL score, you'll receive a personalized pre-approved loan and credit card offers from our partners. A good credit score improves your creditworthiness and allows you to obtain extra credit under more favorable conditions.


If you analyse your credit report regularly, you will always be aware of your credit score. If your CIBIL score drops, you can figure out why and rebuild it afterward. Similarly, if your credit score improves, you can evaluate it to see how it can be improved if it dips in the future. For a good CIBIL score, you can follow our CIBIL Score Guide for Millennials which will improve your creditworthiness and allows you to obtain extra credit under more favorable conditions. In a nutshell, it provides you leverage while applying for a loan.

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