In India, EMIs, credit card bills, and loans can affect your credit score. Indian credit bureaus do not take into account household bills, utility bills, and mobile bills.
How Do Missed or Delayed Payments Affect Credit Ratings?
Even a single missed payment affects the credit score. Even a single payment default will go into your credit report. This will bring down your credit score by some points since bureaus consider your payment history while computing your credit score. This will cause banks to reject your loan requests after they check your credit score. They may also reduce the credit limit on your credit card.
Major and Minor Repayment Defaults
There are two types of repayment defaults - Major and minor. When you do not make your payments for less than 90 days, it will go into your credit report and credit score. Although it affects your credit score, it is temporary. When you do not make the payment after 90 days, the account is classified as a non-performing asset or NPA. This is considered as a major default and banks generally reject applications from such candidates.