24 December, 2024 | 17:46 IST
One missed credit card payment might seem like a small slip-up — an honest mistake or a minor oversight. But, in the world of finance, that single late payment can have a ripple effect, crashing your credit score and your credibility. To lenders, it's more than just a tardy payment — it's a red flag that signals financial indiscipline.
While it's difficult to pinpoint the exact impact of a single late payment, it generally starts affecting your credit score as soon as it’s reported to the credit bureaus.
In India, credit scores range from 300 to 900, with a score between 750 and 900 considered ideal. Individuals within this range are more likely to receive favourable loan terms, including lower interest rates and higher chances of approval.
A dip in your credit score due to a delayed payment can have long-term consequences, particularly when it comes to borrowing money in the future. You can check your credit score for free on the Moneycontrol app and website. Moneycontrol users can also apply for loans up to Rs 15 lakhs through the app and website in a completely digital process. The interest rates start at as low as 12% per annum.
Let's take a closer look at how the timing of missed payments can impact your credit score and your financial prospects.
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There are situations where a late payment might be unavoidable, such as during medical emergencies or job loss. But following the tips below can help you avoid such delays:
In addition to these tips, practicing financial discipline and maintaining a realistic budget can help prevent late payments. By having a clear understanding of your income and expenses, you can prioritise essential bills and avoid falling behind.
ALSO READ: What is the average credit score in India and how to improve your credit score
To sum up, late payments can have a significant negative impact on your credit score, harming both your creditworthiness and overall financial health. The longer the delay, the more severe the consequences. If you do miss a payment deadline, it’s essential to monitor your credit score regularly. You can check your credit score on the official credit bureau websites, or use platforms like Moneycontrol, which also offer free access to your credit score. On the Moneycontrol app and website, you can also explore personal loan offers up to Rs 15 lakhs that are offered in partnership with top lenders in the industry.
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