Yes, Paytm Postpaid will have an impact on your credit score. Paytm postpaid is a pre-approved and instant credit offered by Paytm’s NBFC partners. This facility can be used to make online/offline purchases on more than 1 crore websites and merchants. Users can get an instant credit of up to Rs. 60,000 for an interest free period of up to 30 days. They can use this credit to make bill payments, recharges, purchases, etc.

Since Paytm Postpaid works like a credit card, it will affect your credit score. Timely repayments of the Paytm Postpaid bill can help you build a good credit profile. It will  make you eligible for good loan and credit card offers. If you don’t pay the postpaid bill amount on time, it will hurt your credit score. 

What Is A Credit Score?

A credit score is a 3 digit number between 300 and 900 that indicates a person’s creditworthiness. The credit score is an important factor based on which lenders will lend to borrowers. If you have a low credit score, you may perhaps be eligible for credit. But, it will probably be given at a high rate of interest and unfavorable terms. 

Credit Score Range and Analysis


Credit rating






The credit score has to be enhanced. Indicates poor creditworthiness. No lenders. Even if you get loans, interest rates will be very high. 



The credit score has to be improved. There are very few lenders. Low creditworthiness. High interest rates. 



Finer interest rates, most lenders will be confident to lend, fair creditworthiness, but can still work to upgrade



highly creditworthy, favorable interest rates, all lenders available, quick loan sanction

Thus, a credit score of 750 and above is considered very good. Borrowers will get preferential interest rates and quick loan approval for this credit score.

How Does Defaulting on Paytm Postpaid Affect Credit Score?

Paytm Postpaid is like a loan agreement. When you get a postpaid line of credit from Paytm, it will be reported to the credit bureaus. So, when you default on this loan without paying the bill, it will go down on your credit report as negative. 

You should use these services with caution. Since it is postpaid, you will have the urge to make impulsive purchases. This will exhaust your credit limit and increase your CUR. This will automatically affect your credit score negatively. 

What Are The Other Consequences of Paytm Postpaid Default?

Late payment penalties:

Paytm levies late payment charges on its postpaid defaulters. It charges around Rs. 0 to 750 for payment defaults, based on the amount due. Paytm generates a bill for all the transactions done by the user using Paytm postpaid for the previous month. The bill has to be paid by the 7th of the month. This means that you have a period of 37 days without interest to pay the bill.  

Account will be blocked:

When you default on your Paytm Postpaid account, the account will be blocked until you make the payment of the outstanding amount. 

Eligibility Criteria For Paytm Postpaid

You don’t need a credit score or proof of employment to apply for Paytm Postpaid. Your loan approval is subject to meeting the risk policy of Paytm

  • Users should have a valid PAN number
  • Applicant must be an Indian citizen
  • The Applicant must be more than 20 years
  • They must complete online KYC verification using the KYC of Aadhaar number. 

How to Apply for Paytm Postpaid?

Step 1: Click on the postpaid icon on the homepage

Step 2: Enter details like date of birth, PAN number, and Email address. 

Step 3: Tick the checkbox to provide your consent for access to your credit report

Step 4: It will take a few seconds to get the best deal for you. 

Step 5: The offer is generated with a credit or loan limit 

Step 6: Click a selfie to finalize the KYC check (Know your customer requirements)

Step 7: Verify your Aadhaar with the OTP received in your mobile. 

Step 8: Confirm your details and activate your postpaid. 

FAQS Does Paytm Postpaid Affect Credit Score

1:What are the charges for activating Paytm Postpaid?

Paytm Postpaid does not have any joining fee. However, Paytm lender partners may levy a nominal convenience fee of 0% to 3% on monthly spends using Paytm Postpaid (If applicable). For example, for some categories like rent payment, the user is charged a convenience fee or platform fee. This is displayed at the time of transaction. 

2:What are the various rules and regulations for Paytm Postpaid bill and related charges? 

The Paytm postpaid bill gets generated every month and you will get a single consolidated bill including the nominal convenience fee of 0% to 3% if applicable. The due date to pay the bill is the 7th of every month. Users can pay the bill by visiting the postpaid section on the Paytm app and it can be done through debit card, UPI, or netbanking. Late fee will be charged if you default on your bill. It can range from 0 to 750 plus GST depending on the amount outstanding. Users can also pay their outstanding balance before the due date at any time during the month.

3:Does activating Paytm Postpaid affect credit score?

As soon as you start using Paytm postpaid, your payment history will be reported to the credit bureaus. The bureau will start building your credit score and history based on this information. Making repayments on or before the due date without defaulting will help in improving your score. Whereas, missing out on bills will cause your credit score to dip. 

4:What are the repayment options for Paytm postpaid?

You can set up an auto debit repayment option from your bank account.Other modes of repayment include netbanking, debit cards, UPI, and payment using Paytm wallet. Currently, there is no method to do partial repayment or via EMIs.