A credit score in simplest terms means the ability to repay a loan or sum in the form of numerical representation. This score ranges between 300-900 basically, and it considers several factors. One such factor that I am going to talk about in this article is delay or skip payments. Now many factors affect your CIBIL score. These include bill payments, credit history and more. Payments are an essential part of this, and a slight constraint in this area will not be suitable for you.

Here it is going to reveal everything about delayed and skipped that you didn’t know. You will also learn how unknowingly it affects your CIBIL score. Read this article which will save your time by providing some excellent tips to improve upon them. So, without further adieu, lets dive into the report!

How payments activities affect CIBIL score?

When I talk about payment activities in this article, it means two things. First, either you have been very late to make a repayment and delayed it, or you have failed to do so completely. In both cases of payment activities, there are high warnings.

It is what the Credit Information Bureau (India) Ltd states.  90% of all approved loan applications require a CIBIL score of more than 700. Along with these financial institutions work on credit-risk based calculations. It is for interest rates and a high CIBIL score.

I repeat do not skip payments on EMIS or for loans

These factors stand very advantageous on your part. A good CIBIL score, banks with friendly interest rates schemes on credit welcome you. Let’s get to know these payment activities a bit more for clarity and understanding in the next section’.

How late/ skipped payments affect credit score?

Analysis over late payments:

Your payment history is the most significant factor that is responsible for credit score. Therefore, it is much important that you timely manage your finances and payments and  do not skip payments on EMIS or for loans.

If you do not accept, these pointers will make things more transparent for you.

  • A recent study revealed that 30-day misdemeanors could bring down your CIBIL score points by 100 straights.
  • A late payment has an immense impact on credit score. It varies from a particular credit bureau as against another credit bureau
  • Missing a credit card bill payment can show up in your records up to 7 years.
  • Late fees accumulated due to late payments are more aggregating than usual. It could increase your monetary debts and pressures.

Analysis over skipped payments:

Whenever you apply for any loan and submit its application, your CIBIL score gets checked. Your bad credit score is enough for rejections over loans applications.  Therefore, every time you have an ongoing payment activity. Be it anything, related to your CIBIL score, make sure you don’t lag.

The best way to do so is to make a conscious calculation; one should maintain a diary of dates, expenses, and payments are a good practice. This way, you have a record with you, and will not miss any mandatory charges. Following points explain how missing payments can affect your overall CIBIL score.

  • Financial institutions reject loan applications due to lower CIBIL score. It is due to skipped payments.
  • This increases monetary debts upon the loan receiver due to increased interest rates.
  • Payments missed in the span of the last 90 days are considered minor defaults, and it is acceptable. However, your CIBIL score might get hit temporarily.
  • Save yourself from significant defaults if failure in payment exceeds the limit of 90 days than the financial institute will declare your accounts as NPA.
  • NPA accounts are red flags for lenders such defaults are liable for derogatory remarks. It can lower your CIBIL score through a great margin.

Factors affecting CIBIL score:

Like it is correctly quoted by Benjamin franklin “beware of little expenses, a small leak will sink a great ship”. It means, beware of little details, caution exercised beforehand reduces tragedy! Well, what I am trying to depict is that one must be ready with all the details.

When you know how and where can your CIBIL scores can go wrong; there is a chance of improvement. The four factors that considerably affect your CIBIL score are:

  1. Credit exposure- 25%
  2. Payment history-30%
  3. Age of the credit-25%
  4. Total account-20%

Well, these percentages are enough to speak for themselves. Now you know what parts you need to concentrate on when it comes to CIBIL score.

The next section is how to improve the CIBIL score. So, let’s unravel the various points that can stand in your favour. When it comes to improving your CIBIL score, these points shall become your auxiliaries.

How to improve your CIBIL score?

After knowing the various factors, dwelling over them, and understanding the points, you find out ways that will improve your overall CIBIL score. The following points will change your life!

  • Talk to your lending institutions. Try negotiating
  • Dispute errors in credit reports
  • Pay bills on time
  • Consider auto-debit option
  • Make notes. Set reminders
  • Check your credit reports from time to time.
  • Stick to a budget


  1. For how long late payments reflect on a credit report?

Records about late payments stay on credit reports up to seven years for a min post the account reported.

  1. Will late payment affect CIBIL score?

Yes. CIBIL scores get much affected by late payments and can hamper about 80-100 points at least

  1. Can I remove the late payment record from my credit report?

If you feel that the late payments report on your account has occurred by mistake, you can check the error. If there is something as a misleading mistake, you can report it to the respective credit bureau.

  1. How can I know about late payments on my credit report?

If there is a sudden fall in your credit score, then you should check it.  You should immediately review your credit report.  Consult the bureaus to confirm the issue related to late payments.

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