Winning Bizness Desk
Mumbai.If you delay your credit card bill or loan installment payment even by a single day, you can be charged a fine between Rs 100 and Rs 1,000. However, a delay of just one day does not immediately impact your credit score. Experts say that credit rating agencies and banks treat short delays differently from long-term defaults.
Banks do not report short delays to credit bureaus
In general, any payment delay of less than 30 days is not reported to credit bureaus. Most banks and credit unions offer a grace period ranging from three to seven days. If you make your payment within this period, your account is not marked as a late payment. This means that a one-day delay will not have any direct negative effect on your CIBIL score during that time.
Frequent delays create a negative pattern
Experts caution that although credit bureaus may ignore one or two days’ delay, repeated late payments can harm your credit profile in the long run. Banks and lenders may flag such frequent delays in their internal systems. Repeated short delays are seen as a sign of poor payment behaviour. This can affect your chances of getting loans or new credit cards in the future.
Four ways to maintain a good credit score
1. Use only 30% of your credit limit: Always keep your spending below 30% of the total limit. For example, if your card limit is Rs 1 lakh, restrict usage to Rs 30,000.
2. Apply for a limit increase: If your income is stable and you have a good repayment record, request your bank to increase your card limit.
3. Spread expenses across multiple cards: If you have more than one credit card, divide regular expenses among two or three cards to avoid high usage on a single card.
4. Set spending alerts: Use mobile app or SMS alerts to receive notifications when your card spending crosses 30% of the limit.
Understanding the CIBIL score
The CIBIL score is a three-digit number that reflects your credit history, including all loan and repayment records. The score ranges from 300 to 900. A higher score indicates better credit behaviour. Banks, non-banking financial companies, and other institutions consider customers with higher scores to be more trustworthy and financially disciplined.
How to check your CIBIL score
The CIBIL score can be checked for free once a year on the official website [www.cibil.com](http://www.cibil.com). To check the score more than once, users need to purchase a monthly subscription plan of Rs 550. Several financial service platforms also offer the facility to check the score, but official CIBIL data is considered the most accurate.
Summary pointers
- Delay of one day can attract a fine up to Rs 1,000
- Credit score does not drop for short delays
- Delays under 30 days are not reported to credit bureaus
- Repeated short delays affect long-term creditworthiness
- Keep spending under 30% of card limit
- Use multiple cards and set spending alerts
- Check CIBIL score once a year free on official site
