How Timely Payment Can Maintain Your CIBIL Score

Lenders evaluate your creditworthiness i.e. your loan repayment capacity based on your CIBIL Score. It's a three digit number depicting your credit behavior. The good score indicates that you have paid all your EMIs and credit card bills on time whereas a negative score indicates that you have a bad repayment history. Paying your loan EMIs and credit card bills late has a negative effect on your CIBIL Score.

The intensity of negative effect depends upon the frequency in occurrence of payments made past due date and on the number of days past due date. If you pay your bills within the 30 days past due date then it has a lesser negative effect on your score in comparison to payment made after more than 30 days past due date. So, if you are bad at remembering dates of your loan EMIs and credit card bills then you can do any of the two things: Firstly, you can opt for the auto debit option given by lenders to repay your dues. Secondly, you can set up reminders of the due date in your personal phones, laptops etc. It emerges from the discussion that it is important for you to pay all your bills on time in order to maintain a good CIBIL Score.
Also Read: Late payments – How Much they affect your CIBIL score