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Credit Score Impact of Late Payment: How One Missed EMI Can Cost You Lakhs

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Vikram Singh

February 21, 2026 at 8:10 AM IST · 3 min read

Credit Score Impact of Late Payment: Did you know that missing just one EMI or delaying your credit card bill by 30 days could cost you years? In the Indian financial market, your CIBIL score is a reflection of your creditworthiness, which can be tarnished in minutes but improved over time. If you’re dreaming of buying a new home or car in 2026, even a single late payment in your repayment history could send your loan interest rates skyrocketing.

Experts believe that even the slightest negligence in payment not only reduces your credit limit but also makes future loans so expensive that it can ruin your entire financial planning. Let’s understand in detail how the math of a missed payment impacts your pocket.

Missing an EMI

RuPay credit card UPI CIBIL score

Repayment history carries the greatest weight, approximately 30% to 35%, in the algorithm that generates credit scores. This simply means that banks first check whether you’ve lived up to your past commitments before granting you a loan.

Major credit agencies like TransUnion, CIBIL, and Experian India keep a record of your monthly payments. If you’re more than 30 days late in paying an installment, it’s recorded on your credit report. The most shocking thing is that this black mark for late payment remains on your report for the next 36 months (3 years), making every new lender view you as a “risky” customer.

An additional blow of ₹90,000

Many people wonder what difference it makes if their score drops from 750 to 700? The real difference is realized when you calculate the loan interest. Understand how a poor score can weigh heavily on your pocket from the information below. As explained above, a mere 2-3% increase in interest rates can cost you around ₹90,000 to ₹100,000 over the entire term. If the same applies to home loans, the loss can reach lakhs.

Why is a 30-day delay the most dangerous?

According to financial experts, a 30-day delay acts as a ‘red flag’. Fintech giants like ZET and Fibe believe that if you exceed the 30-day mark in payments, you can see a significant drop of 50 to 100 points in your score. This drop is not permanent, but you will need to make timely payments for at least 6 to 12 months to restore it. Once you are classified as a defaulter, credit card companies may also reduce your credit limit.

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How to do ‘damage control’ if you’ve missed an EMI

If you’ve missed an EMI, either accidentally or due to an emergency, instead of panicking, take these decisive steps:

Pay the outstanding amount as soon as you remember. The sooner you pay, the less impact it will have on future reporting.

If the delay is due to a technical glitch (bank server issue), immediately inform your bank and request them to remove the entry.

To avoid future mistakes, set up ‘auto-debit’ (NACH) on your account. Set a reminder 3 days before the due date to ensure you have a sufficient balance.

Don’t use your credit card’s full limit. Keeping it within 30% improves your score quickly.

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