Missing a loan EMI or credit card installment may look like a small issue. But if the payment is delayed by more than 30 days, it can affect your credit score for many months.
This can make future loans costlier and may lead to paying thousands of rupees more in interest.
Experts say that repayment history is the most important part of a credit score. It usually carries about 30% weight in most scoring models. So, even one major payment mistake can reduce your score significantly.
Why a 30-Day Delay Matters
Credit bureaus like TransUnion CIBIL and Experian India record monthly payment data, often for up to 36 months. If an EMI is delayed by more than 30 days and the bank reports it, the delay becomes part of your official credit history.
Manish Shara, CEO and co-founder of ZET, says repayment history has a big impact on the score. For people with a short credit history, even one late payment can cause major damage.
According to TransUnion CIBIL, a missed payment can affect your score for up to two years. The late-payment record itself can remain on your credit report for up to 36 months.
Kundan Kumar, CEO of Zavo, explains that the scoring system measures behavior, not intent. If a payment mistake happens, it is immediately recorded. Recent delays affect the score more than older ones.
What a Low Credit Score Can Cost You
A low credit score does not just reduce a number — it directly affects your finances.
Manish Shara gives an example: if someone takes a personal loan of ₹10 lakh for 5 years with a score above 750, the interest rate may be around 10.5%–12%.
But if one missed payment drops the score below 700, the same loan may cost about 14% interest. This can mean paying over ₹90,000 extra during the loan period.
Similarly, a ₹5 lakh loan for 3 years at 12% interest results in total interest of about ₹97,858. If the rate rises to 15%, total interest becomes about ₹1.24 lakh — roughly ₹26,000 more.
It Takes Time to Improve Your Score
Anup Agarwal, co-founder of Kiwi, says a missed payment affects first-time borrowers more. If they continue paying on time after that, the score can slowly improve within 6–12 months.
Vikas Tarachandani, co-founder of SURE, says that for people who already have good scores, a new delay is seen as a change in behavior, so the impact can be strong.
Usually, improvement is seen after 6–12 months of regular on-time payments.
Akshay Mehrotra, MD and Group CEO of Fibe, says delays of more than 30 days are normally reported and affect the credit profile. However, the damage is not permanent if payments continue on time.
What to Do If You Miss a Payment
Experts suggest three immediate steps if you miss an EMI:
Pay the overdue amount as soon as possible.
Inform the lender quickly if the delay happened due to a technical issue.
Make sure the delay does not happen again.
To stay safe, it is best to set up auto-debit. Keep a small balance in your account, set reminders before due dates, and use your credit card limit carefully. These habits will help keep your credit score strong over time.
