Missing Your Loan EMI Can Hurt Your Credit Score, But By How Much Exactly? Here's The Full Calculation

Mumbai: A credit score plays a vital role in reflecting a person’s financial history. If the score is strong, securing a loan or credit card from banks becomes much easier. However, there are several reasons behind a low credit score. These include failing to repay a loan EMI on time, misusing a credit card, or not paying the credit card bill. Such practices damage the credit score and reduce the borrower’s credibility in the eyes of banks.

How much does a missed EMI impact your credit score?

The effect on your credit score depends on how long you delay your EMI payment. If the delay is between 1 to 7 days, it usually does not make a big difference. But any delay beyond this period begins to affect the score negatively.

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Impact of 30 days delay

If you miss your EMI for up to 30 days, your credit score can drop by 50 to 100 points.

Impact of 60 to 90 days delay

If the delay stretches between 60 to 90 days, the damage is far more serious. At this stage, your record may be classified as default, which makes it much harder to secure loans in the future.

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Impact of more than 90 days delay

A delay of over 90 days can cause severe harm to your credit profile. In such cases, the credit score plunges drastically, almost wiping out the borrower’s credibility.

If you miss your EMI by one month, you could lose 50 to 100 points in your credit score. A delay of two to three months can bring a fall of nearly 150 to 200 points.