Credit Score Drops:
In India, credit scores range from 300 to 900. A score above 750 is considered good. Many people assume one late credit card payment is harmless. This mistake can lead to serious financial problems. A late payment lowers your credit score and raises doubts about your financial discipline.
Lenders track your repayment behavior. They use your credit score to decide loan approvals. A single missed payment may reduce your score by 50 to 150 points. This depends on how many days the payment is overdue.
7 Days Late: Minor impact. Slight reduction possible.
15 Days Late: Drop of 50 to 100 points.
30 Days Late: Up to 110-point reduction.
60 Days Late: Score may fall by 130 to 150 points.
90 Days Late: Severe damage. Loan rejections more likely.
120+ Days Late: Long-term damage. Credit profile may remain weak for years.
Late payments also stay on your credit report for several years. This affects credit card limits, interest rates, and chances of approval for new credit.
Auto Payment Setup: Ensures monthly bills are paid without manual action.
Payment Reminders: Phone alarms or calendar alerts help prevent delays.
Due Date Adjustment: Choose dates close to salary credits.
Emergency Fund: Supports timely payments during financial stress.
Lender Communication: Contact your bank immediately during hardship.
Controlling expenses and planning monthly budgets helps you avoid missed payments. A strong payment history builds trust with lenders. A healthy credit score also unlocks better interest rates and loan options.
Missing a payment affects more than your credit score. It reduces your financial credibility and affects future financial opportunities. One delay today could cause big problems tomorrow.
Track your bills. Stick to deadlines. Build a credit score that works for your goals.So pay your credit card bills on time.
Also Read: US Rejects 15 Indian Mango Shipments at $500,000 Loss
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