New Delhi20 minutes ago
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If you delay a day in filling your credit card bill or loan installment, then you can be fined from Rs 100 to Rs 1,000. However, your credit score does not fall immediately at the delay of less than 1 day in the bill repayment. According to experts, credit rating agencies and banks differentiate between short delays and long defaults.
Banks do not report to credit bureau on less than 30 days delay
Typically, the delay of less than 30 days is not reported to the Credit Bureau. All banks and credit unions typically offer 3 to 7 days grace period. When paid during this period, your account is not flagged as ‘late payment’.
This means that if you pay only a day late, then there will be no direct negative effect on your credit score at that time.
Repeated late payment causes negative impact
Experts believe that even if the Credit Bureau does not report a delay of one or two days, the short delay can put a negative impact on your CIBIL score in the future. Banks and lenders can flag such delays on their internal system.
Banks consider the delay of one day as bad payment behavior. This can affect the loan or credit card application in future.
4 important things to maintain credit score
- Utilize only 30% of the card limit: Always keep the expenses up to 30% of the limit. For example, spend up to Rs 30,000 on 1 lakh rupees limit.
- Apply to increase card limit: If your income is stable and the payment history is good, then request to increase the limit from the bank.
- Divide the expenses into different credit cards: If you have more than one credit card, then divide regular bills into 2-3 cards. This will not increase the utilization ratio of the same card.
- Apply credit card spending alert: Set the card’s mobile app or SMS alert, so that you can get an alert if the expenditure goes above 30%.
What is a CIBIL score?
The CIBIL score is a three -digit number, which shows your credit history. This score is between 300 and 900. The higher the score, the more reliable customers, banks, NBFC companies or other financial institutions consider you as reliable customers.
How to check CIBIL score?
CIBIL score official CIBIL website www.cibil.com But can be seen for free. However, this facility is available only once a year. More than one time, a monthly subscription plan of Rs 550 has to be taken to check the CIBIL score from the CIBIL website. Apart from this, many banking service aggregators also provide the facility to check CIBIL score.
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