How Missing Payments Can Affect Your CIBIL Score?
Missing payments for credit cards or loan EMIs is the greatest blunder you can do, as it negatively affects credit score. There are instances when you may forget the payment date and miss the same, not maintain sufficient balance in payment account, which is set for auto payments or simply lack funds to clear off the dues.
If you miss a lot many payments in a row, it can lower your credit score to an alarming level. Being financially disciplined will surely give you a good credit score. Thus, it is essential for you to make timely payment for any credit card bills, debts, EMIs.
Why You Must Not Miss or Delay Payments?
First and foremost, keep a regular check on your finances so that you can consciously manage all payments. Make it a habit to regularize any important payments that can affect credit score, so that you do not list as a defaulter. Even missing a payment once can turn winds against your CIBIL score.
Delayed payments give a sign to lenders and institutions that you are taking it too easy with finances and careless about payments. Thus, they cannot trust you as a candidate for taking anymore loans or credit cards.
How Does a Bad Credit Score Affect You?
Your CIBIL score can suffer in case of major defaults such as not making payments even after 90 days of missing the same. Delays in paying dues will create a bad credit score, which will consume a lot of time to recover from. Your credit rating matters when you want to take loans and credit cards based on your CIBIL score, thus you must try to maintain your credit score at least above 700.