As Satish Mehta, founder and CEO of Athena CredXpert LLP, puts it, “Anywhere where there’s financial risk involved, the credit score becomes a reference point.”
That three-digit number is now a form of financial DNA, offering cues on discipline, reliability and intent. Beyond lenders, insurers, recruiters, stockbrokers and even telecom companies are tapping into it with growing interest.
Understanding correlation
At its core, the credit score’s cross-sector reach rests on a simple belief: how you manage debt reflects how you manage money overall.
“Credit scores have always been an integral part of the lending ecosystem,” says Manish Jain, country managing director at Experian India, a consumer credit reporting company.
“The scores not only allow lenders to review the repayment ability and intent of the applicant but also to offer the right products and optimal interest rates.”
With lending activity expanding rapidly in India, the number of individuals and businesses with a bureau footprint has risen sharply. As a result, credit scores have become more relevant than ever, with far more bureau touchpoints across an individual’s financial life, Jain added.
Insurance
In insurance, a weak credit score may not necessarily lead to rejection or higher premiums—but a strong one can work to the customer’s advantage.
“Usually, specifically in health insurance, you could get a discount because of having a good credit score. But it usually would not impact your premiums if you have a bad credit score. It could just give you a discount on some products,” said Mahavir Chopra, founder of Beshak.org, a discovery platform for insurance.
In term life insurance, the role of credit scores may go further. Chopra noted that the score could form part of an insurer’s profiling to assess overall customer quality, potentially influencing whether coverage is offered.
Parijat Garg, a digital lending consultant, said that some general insurers offer premium discounts of up to 15% for customers with strong credit profiles. Jain said that “studies show a correlation between insurance claim ratios and misuse of policies by policyholders.”
Hiring
Perhaps the most striking shift is playing out in recruitment, where financial behaviour is now part of background checks.
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“Today, companies are also pulling reports of individuals before they even hire them,” said Mehta. The logic, he explains, is fiduciary risk. “If you’ve got bad credit history, then you’re probably overleveraged, and therefore there is a fiduciary issue. They assume you might be tempted to skim money. And if you are in a debt trap, your attention span, quality of work, and even your ethics could be compromised.”
Parijat Garg echoes this view, particularly in banking and financial services, where employers increasingly set minimum credit score thresholds for roles involving public money. “It has become a sign of sound financial discipline and trustworthiness in general,” he said.
Stock brokers
Credit scores are also influencing access within capital markets.
Mohit Gang, founder of MoneyFront, an investment platform, said that stockbroking firms now use credit scores to determine eligibility and trading limits.
“There are many companies now that are considering using credit scores to see if you are eligible for their basic programmes. Even stockbroking firms, when it comes to what kind of limits (Margin Trading Facility (MTF) or trading exposure limits) should be given or not given. These are mostly formula-driven, but still, they will have a check on it.”
Alongside KYC norms, credit scores are becoming another filter to assess a customer’s financial profile, Gang added.
Telecom companies
Even mobile connectivity is not immune. Telecom companies are increasingly cautious about issuing postpaid connections to customers with poor credit histories.
If someone defaults on an education or two-wheeler loan today, “your chances of getting the best terms on a car loan tomorrow or a house that you might want to buy tomorrow also stand affected,” warned Mehta. “Banks, insurance, and telecom companies are all learning how to use bureau scores in an objective, scientific, logical, and algorithm-driven way.”
The reach of Indian credit scores is now extending beyond borders.
For Indians relocating to the US, fintechs such as Nova Credit allow individuals to use their Indian credit history to secure postpaid mobile connections or negotiate better rental terms, Garg explained.
Beyond liabilities
While credit scores capture liabilities, a parallel digital infrastructure is emerging to tell the asset-side story.
Account Aggregators (AAs) are regulated data-sharing entities that collect financial information from individuals and share it—only with consent—with service providers. These include bank statements, deposits, insurance policies, mutual funds, SIPs, shares and NPS data.
BG Mahesh, CEO of Sahamati, an industry alliance in Account Aggregator ecosystem, said AAs provide a more holistic view of financial behaviour. “Account Aggregators enabled financial data can help low credit score customers to present their current ability to service EMIs or pay insurance premiums, which in the presence of other comforting factors (such as collateral), can enable financial institutions to take measured exposures on such customers.”
Score discipline
Not all missed payments affect your credit score. Garg clarified that insurance premiums and mutual fund SIPs are not reported to credit bureaus. As per Credit Information Companies (Regulation) Act, 2005 (CICRA), credit bureaus collect information of only loans, credit facilities and credit cards offered by banks and NBFCs.
Still, active management is essential. Mohit Gang offers a blunt warning: “Never to borrow on a credit card, because that’s the worst thing that people get stuck into.” He also cautioned against revolving credit, which can sharply damage scores.
Garg recommended keeping credit utilization below 40%, while Mehta warned that over-utilization signals instability—“sitting on the edge of tipping over.” The remedy, he said, is simple discipline: “Take what you need, not what you think you need, pay back and pay on time.”
Manish Jain also urged consumers to review their reports regularly. “Checking your own credit score or credit report has no impact on your credit score. Regular monitoring helps consumers stay informed about their credit standing, track their progress, and identify any inconsistencies at an early stage.”
A credit score is no longer confined to the lending desk. It now influences who hires you, insures you, trades with you, or even gives you a SIM card. In an ecosystem where financial behaviour increasingly doubles as public credential, the message is unmistakable: your score is speaking—often before you do.
