How Mobile Wallets Affect Your Cibil Score in India?

Mobile wallets or e-wallets are becoming increasingly popular. A large number of traditional banks and e-commerce platforms have launched their own versions of these digital products. Considering that mobile wallets are fast entering as the most liked mode of sending and getting payments, one ponders whether mobile wallets influence your check of the credit score? In fact, using mobile wallets does influence the outcome of your credit score in certain ways.

• Security : While most banking companies offer complete assurance on the security of their e-wallets, you should accept this promise with due consideration. On the internet nothing is totally safe. Tech wizards have shown ways to breach the security measures of these companies and hack into their databases. The security of your wallet can be jeopardized if you lose your phone. Many surveys have discovered that people coming across lost phones try accessing personal data on the phone. This exposes your financial details to risks. Considering that your e-wallet is directly linked to your account, anyone finding your unlocked phone will be in a position to divert funds from your account to your e-wallet and utilise it for transactions. This makes it a complete theft of identity.

• Damaged Creditworthiness : E-wallets can influence how you spend money. Hence it can influence your creditworthiness and make getting loans a complete struggle. To start with, your psychology has a role to play in how you expend your money. For instance, if you purchase a smartphone worth Rs. 30,000 in by paying money in physical form, it gets really hard to let go of that funds. In this situation the transaction is visually there and hence the loss is tangible. Yet, if you spend money using cards or e-wallets, the transaction has to be electronic, making it basically a simple exchange of figures.

• Credit Rating: The finest credit rating companies seem to understand that this change is happening in the financial service sector. A sector called Fintech is fast rising as a merger of finance and technology. Also, with people taking up new ways of managing and spending their money online, the agencies for credit rating are making use of alternative data to assess people’s creditworthiness far better.

People who are not careful on how they utilise their e-wallets are running the risk of hampering their own rating. In some time, these people will have no option but to fail a loan with a low CIBIL score. You must have a good understanding of the e-wallets will affect your credit report. So, ensure that you pay attention to this:

• Unlike what you assume, not using mobile wallets at all is not a good idea. This is simply for its contribution to your score in a positive way.
• Use your mobile wallets within limits. Don’t overspend, but don't underspend either.
• Keep an eye on your bank account. When you spot unknown transactions, you need to send a remark to your bank at once.

Mobile wallets are important to your financial profile, don’t have any doubts about it.