How Late Payments of Dues Affect Your CIBIL Report

 The CIBIL score plays an important role when it comes to borrowing a loan or a credit card. The better the CIBIL score is, the higher the chances of getting approved for a loan or credit card approval. In the case of a low credit score, it becomes almost extremely challenging to get approval on time. A good CIBIL score comes from good credit habits and activities. It is crucial to take good note of all the activities that will actually help you get a good ‘my credit score’. Payment is one such important factor that influences your credit score. Here’s how missing payments can harm your credit score.

Missing payment for 30 days

The consequences of late payment will depend upon the time frame. If you have not paid your credit card bill in full on your monthly instalment within 30 days of the due date, you will have to pay extra charges. When you miss a payment for 30 days after the due date, the loan provider does not report this issue to the credit bureau. You just need to pay a late charge for the days that you delayed the payment from the due date.

Missing payment for 60 days

If you miss a payment on your existing loans or credit cards for 60 days after the due date, it will harm your credit score. After 60 days from the due date, the loan provider immediately reports the issue to the credit bureau. The missed payment is registered on your credit report, which damages your credit score. There will be a drop of 100 points from your credit score immediately with every missed payment of 60 days. Not only this, you will end up paying a high charge on a daily basis till you make the repayment. Learn how to get a business loan.

Missing payment for 90 days

When you miss a payment for 90 days, it is taken as a non-performing asset. A nonperforming asset means when a credit account is completely stagnant without any credit activity taking place. It gets registered as a nonperforming asset on your credit report, which significantly damages your credit score. One should always make payment within 30 days of the due date so that the credit account does not become a non-performing asset.

Must Read : How To Check CIBIL Score Rating?

Wrapping up

How to check your credit score? Visit the official website of Clix Capital to get the option "my credit score", and check your score by giving all the details and information.