When you buy a phone like the iPhone 17 on EMI, your bank or credit card provider treats it as a loan. It doesn’t matter whether it’s for ₹1 lakh or ₹10,000 — it gets reflected in your credit report. This means your repayment history, outstanding balance, and whether you pay on time will all affect your credit score.
The impact of timely payments
The good news is that paying your EMIs on time actually builds a positive credit history. Even small-ticket loans like mobile EMIs help prove to lenders that you’re disciplined with repayments. Think of it as practice for bigger loans — if you can handle a phone EMI, you’re signalling that you might also handle a car loan or home loan responsibly.
Where you need to be cautious
The risk comes if you miss payments. Even one missed EMI gets reported to credit bureaus and can shave points off your score. Another pitfall is maxing out your credit card limit with a big-ticket EMI purchase. A high credit utilization ratio (using most of your available limit) can drag your score down, even if you’re making payments on time.
Short-term vs long-term effect
In the short term, taking an EMI adds to your outstanding liabilities, so lenders may see you as having slightly higher risk. But in the long run, consistent repayments can actually boost your credit score. The key is not overloading yourself with too many EMIs at once.
Should you buy that iPhone on EMI?
If you have a stable income and can comfortably pay the instalments without missing deadlines, going for an EMI won’t harm your credit score — it may even help. But if you’re stretching your budget just to get the latest gadget, it could become a financial strain and hurt your score if you slip on payments.
FAQs
1. Will buying an iPhone on EMI improve my credit score?
Yes, as long as you pay on time. Regular, timely repayments show you’re a responsible borrower, which can slowly lift your score.
2. Can one missed EMI affect my credit score?
Absolutely. Even a single missed payment is reported to credit bureaus and can lower your score.
3. Should I prefer no-cost EMI offers?
Yes, no-cost EMIs are a better option because you don’t pay extra interest. But remember, the repayment discipline is still the same.
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