Ask the right questions before you borrow: CRIF’s Sachin Seth
How should a retail borrower navigate all these options?
The good news is that consumers today have access to more information than ever before. There are numerous digital tools, educational resources, and financial platforms that can help individuals better understand credit products and compare available options. Credit bureaus also play an important role by enabling consumers to access their credit information and gain greater visibility into their credit profiles. At the same time, borrowers can seek guidance from financial professionals, trusted banking relationships, or independent advisors, depending on their preferences. It’s also worth becoming familiar with newer frameworks such as the Account Aggregator ecosystem. Understanding how consent-based data sharing works, what information is shared, and the safeguards around data privacy can help consumers make more informed decisions and potentially access more tailored financial products. Consumers today are far more empowered than they were even a few years ago because information is more readily available and digital tools make product comparisons easier. The best approach is for borrowers to remain informed and ask the right questions. They should understand key elements such as interest rates, fees, repayment terms, foreclosure conditions, and any obligations attached to a loan before making a decision. Most importantly, borrowing should be aligned with one’s repayment capacity and financial goals. Credit can be a powerful financial tool when used thoughtfully, but it works best as part of a broader financial planning approach rather than as a short-term solution to every need.
