If you are considering a single late payment of credit card as a minor mistake, then be careful, because in the world of finance, its effect is very deep. This can not only drop your credit score, but also questions your financial credibility. Lenders see it as a lack of financial discipline.
When and how much does the credit score affect?
The credit score in India is between 300 and 900 and the score above 750 is considered good. With a single late payment, your score can fall from 50 to 150 points, which can make it difficult to take a loan in future.
Impact of delay in payment: How much loss, how many days?
7 days delay: Light effect, but still the score may fall slightly.
Less than 30 days: With a delay of 15 days, the score may fall by 50-100 points.
30 days delay: Possibility of decline of up to 90–110 points.
60 days delay: The score may decline by 130–150 points.
90 days delay: During this time you may have to suffer serious consequences, including things like a huge decline in credit scores and difficulties in getting loans in the future.
More than 120 days: This type of lapse can harm your credit score forever, which makes it very difficult to get a loan or credit in the future.
Measures to avoid late payment
Set automatic payment: Often people forget to pay dues. So it is better that you set automatic payment.
Use reminder and alarm: This method can prove to be helpful in reminding me of timely payment.
Customize the payment date: Set the date around the salary.
Make Emergency Fund: This method will support suddenly at the time of expenses.
Contact lenders: In case of trouble, talk to the lenders immediately.
Financial discipline is important
By controlling the right budgeting and expenses, you will not only be able to pay on time, but will also be able to protect your credit score.
conclusion
A late payment can harm your entire credit profile. Therefore, it is necessary to do financial transactions with caution and plan. You can check your credit score for free on Moneycontrol app or website. Also, from here you Instant personal loan up to 50 lakh rupees You can also find completely in digital process.
Summary
A lapse can disturb the credit score. Learn how to avoid this, how to manage your finance and a lot.
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Disclaimer
This fraction/article is written by an external partner and does not reflect the work of the editorial team of Moneycontrol. This may include references to products and services offered by Moneycontrol.
