Does using debit card EMI impact your credit score? Here’s what you should know

A debit card EMI lets you convert your purchase into monthly instalments even when you don’t use a credit card.

With more banks offering “debit card EMI” options at checkout, many people wonder if this feature works like a credit card EMI — and whether it affects their credit score. The answer depends on how your bank structures the EMI and whether it reports the loan to credit bureaus like CIBIL or Experian.

What is a debit card EMI?

A debit card EMI lets you convert your purchase into monthly instalments even when you don’t use a credit card. It’s offered by banks like HDFC, SBI, Axis, and ICICI in partnership with merchants. The bank checks your transaction history and pre-approves you for an EMI limit. The amount is automatically deducted each month from your savings account.

Does it affect your credit score?

In most cases, a debit card EMI doesn’t directly impact your credit score because it isn’t technically a credit line. The loan amount isn’t recorded as outstanding credit unless the bank reports it as a personal loan to CIBIL. Some banks, however, treat these EMIs as short-term consumer loans — in which case they do show up on your report and can influence your score.

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When it can help your score

If your bank reports the debit card EMI as a small loan and you repay it on time, it can actually help you build or improve your credit score. It shows that you can handle repayments responsibly. For people without credit cards or prior loans, this can be an easy way to start a credit history.

When it can hurt your score

Missing or delaying an EMI payment can hurt your score — but only if the bank reports it to credit bureaus. If your account doesn’t have enough balance and your EMI fails, it may also invite penalties from the bank. Even if it doesn’t show up on your CIBIL record, frequent payment failures can affect your eligibility for future loans.

The takeaway

A debit card EMI doesn’t always influence your credit score — but it can, depending on how your bank handles reporting. The safest approach is to treat it with the same discipline as a loan: maintain enough balance, pay on time, and check whether your bank shares EMI data with credit bureaus.