What are Skipping Payments Impacts On CIBIL?
Maintaining a good CIBIL score is not an impossible task. If you make regular payments for loan EMIs and credit card bills and leave no outstanding dues, then such behaviour will surely boost your CIBIL score. Sometimes you may delay the payments or skip one payment. This kind of practise will negative impact your credit score, which will hamper your chances of getting a loan or credit card in the future.
How to Avoid Skipping Payments?
Making payments on strict deadline may seem difficult, but if you make it a habit then it won't be that hard to follow. Firstly, always maintain a good bank balance in account from which you pay off the EMIs. Automate the payments so you do not have to worry about forgetting or delaying the payments by any chance.
Look out on your spending. Do not be excessively spend-thrift if you have a loan or more to repay. If you spend than what you earn, then there are risks of missing or skipping loan payments. You can keep a record of dates on which you need to repay in instalments. Skipping even a single payment can reduce your credit score.
If you won't be in town for making the payments, make sure you ask someone else to do it in your behalf or leave a post-dated cheque with bank or someone you can trust to do the payment for you. If you skip loan payments many times, then it will take a severe toll over your CIBIL score.
Have you skipped a Payment? What Next?
In case you have already defaulted at making payment, don't worry. It is time to reconcile and follow a healthy financial journey by never defaulting again. It may take few months or a year or more to recover from damage to your credit score due to skipping payments, but eventually you can regain the strong credit score you had.
After a year or two of missing payments, you can take a small loan that you can pay off in time or keep credit card active by timely paying its bills. Follow good credit behaviour and history and your credit score shall be back on track.