In today's world, individuals can avail of loans and credit cards to fulfil their financial goals. A key factor in accessing credit is the CIBIL Score, which reflects a person's creditworthiness through a three-digit number assigned by CIBIL. Banks and financial institutions typically require an ideal credit score to extend loans at lucrative terms. Your credit score is based on past borrowing and repayment habits.
What is a Late Payment?
A payment that is not made by the due date agreed upon by the borrower and the lender, is considered late. Late payments can lower a borrower's credit score and make it challenging for them to get loans in the future. To avoid damaging your credit score, it's important to check your CIBIL score and complete all your transactions on time.
How Does Late Payment Affect CIBIL Score?
Yes, but before getting into what affects a CIBIL score, let us discuss what a CIBIL score is. A CIBIL score is a three-digit numerical summary of your credit history, rating, and report that varies from 300 to 900.
Late payments can have several detrimental effects on a borrower's credit score and future ability to get credit. Following are some of the possible effects of late payments:
- Negative effects on credit scores: When assessing your loan application, lenders may specifically look for late payments recorded in your credit report. Late payments can decrease a borrower's credit score.
- Difficulty in getting credit: Having a history of late payments can make it challenging for a borrower to qualify for a loan or credit card. Even if the borrower is granted a loan or a credit card, they may have to pay a higher interest.
- Increased default risk: Late payments generally indicate financial instability and may be seen as a risk by the lenders. Consequently, a borrower may find it challenging to get credit in the future.
- Negative effect on the credit report: Late payments are reported to credit bureaus and will show up on the credit report of the borrower. This may affect the borrower's capacity to avail of loans at favourable interest rates.
- Difficulty in recovering a low CIBIL score: After getting a late payment remark, borrowers may experience difficulties in improving their credit score. In such circumstances, it becomes important for them to practice prudent credit behaviour.
Impact of Late Payments on Credit Score Based on the Duration of Delay
Late payments can lower your credit score, with the impact depending on how long the payment remains overdue. Here is how different delays may affect your score:
- 30 Days Late: A single late payment of 30 days can reduce your credit score by 50–80 points, depending on your overall credit profile. If paid immediately, the impact is relatively short-term.
- 60 Days Late: If a payment is overdue by 60 days, the score drop can range between 50–100 points.
- 90 Days Late: A 90-day delay can lead to a 100–150 point drop in your score. At this stage, the late payment is reported as a serious delinquency and remains on your credit report for up to seven years.
- 120+ Days Late: Payments delayed beyond 120 days may lead to a 150+ point reduction, with the account potentially being classified as a default or sent to collections. This can make future credit approvals more challenging.
What Steps Should You Take to Avoid Late Payments?
Timely payments are important for maintaining a good credit score and financial stability. Here are some effective steps to ensure you never miss a due date:
- Set Up Automatic Payments: Enabling auto-debit for your loan EMIs and credit card bills ensures payments are made on time, reducing the risk of missing due dates.
- Use Payment Reminders: Set up alerts via SMS, email, or mobile apps to remind you of upcoming payments.
- Prioritise Debt Repayments: Plan your expenses wisely, ensuring essential payments like loan EMIs and credit card bills are covered before discretionary spending.
Minor and Major Payment Defaults
Payment defaults are divided into two categories: minor and major.
Minor Default: When a borrower misses or delays payment for less than 90 days, this is considered a minor payment default. Banks and lenders consider such defaults to be minor because they believe they will be resolved quickly. However, the CIBIL score is temporarily impacted in this case.
Major Default: When the borrower pays the credit amount but does so after 90 days, this is considered a major payment default. As a result, the CIBIL score suffers more. Also, major payment defaults along with low CIBIL scores hinder future loan or credit card approval.
The exact impact however depends on factors such as the length of the delinquency, the amount of the missed payment, and how recently the payment was missed. The frequency, severity and recency of missed payments can affect your credit score in different ways.
Impact of a Missed Payment on CIBIL Score
Here's how a missed payment can affect you:
Decrease in credit score:
Missed payments can lead to a drop in your credit score. Payment history accounts for a significant portion of your credit score, thus, a missed payment can have a significant impact on your creditworthiness.
Late payment fees and interest charges:
If you fail to make a payment on time, you may be charged late payment fees and interest. These fees and charges add up to the outstanding loan amount which increases the overall cost of borrowing.
Difficulty in obtaining credit:
Missed payments can make future credit applications more difficult, as lenders may be less willing to extend credit to you.
Higher Interest Rates:
If you are approved for credit despite having missed payments on your credit report, you may get offered higher interest rates, making borrowing more expensive.
Negative impact on credit report:
Missed payments can stay on your credit report for up to 7 years, which can have a negative impact on your creditworthiness during that time.
What is 'Day Past Due' (DPD)?
Day Past Due (DPD) indicates how many days you've missed making a payment on your loan or credit card. If you have previously made on-time payments, your DPD will be listed as '0'. If you are 30 days late with your payment, your report will reflect '30' against the preceding month.
There may be instances in the Day Past Due section when 'XXX' is stated. It signifies that the lender has not submitted the bank with payment history information. If you notice it on your credit report, you should not be concerned as it does not affect your future possibilities of getting a loan or credit card approval.
Tips to Maintain a Good Credit History
You can take measures to prevent late payments and maintain a good credit history. You can avoid late payments by following these instructions:
- Set up automatic payments: Several lenders give you the option of setting up automated payments, ensuring timely payments. Essentially, this means that you leave standing instructions to your bank that the bills are to be cleared on a certain day of the calendar month.
- Use a datebook or reminder system: To help you remember when payments are due, mark the dates for all your bills on a calendar and/or set up phone or email reminders.
- Sustain a budget: Check whether you have enough disposable income in your account to pay all of your expenses and adjust your spending as necessary to prevent going overboard and defaulting payments.
- Talk to your creditors: In case you are having trouble paying a bill, get in touch with your lenders as soon as you can to let them know and to discuss alternative payment solutions.
Conclusion
A clean credit history can increase your chances of getting approved for loans such as a housing loan, business loan, or loan against property. To ensure you are credit-conscious and prepared for loans when you need them, keep an eye on your credit report frequently. If you find any incorrect information on your credit report, raise it with CIBIL and have it rectified.
Frequently Asked Questions
Yes, even a single late payment can lower a credit score, as payment history is a significant factor in CIBIL score calculations. The impact depends on factors such as the delay duration, the missed payment amount, and the borrower’s overall credit history.
Late payments generally remain on a credit report unless they are reported in error. If incorrect, a dispute can be raised with CIBIL to rectify the mistake.
A late payment can stay on a credit report for up to seven years and can impact future loan approvals and interest rates.
DISCLAIMER:
While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent errors or delays in updating the information. The material contained in this website and on associated web pages, is for reference and general information purposes, and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. Neither Bajaj Housing Finance Limited nor any of its agents/associates/affiliates shall be liable for any act or omission of the Users relying on the information contained on this website and on associated web pages. In case any inconsistencies are observed, please click on contact information.
Trending Articles

[N][T][T][N][T]
e-Rekha Kerala Land Records – Everything You Need to Know2025-10-09 | 5 min

[N][T][T][N][T]
Understanding Stamp Duty & Registration in Himachal Pradesh2025-10-09 | 3 min

[N][T][T][N][T]
HMDA Approval Status Check – A Complete Guide for Homebuyers2025-10-07 | 4 min

[N][T][T][N][T]
Understanding the Date of Possession in Property Deals2025-10-08 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Square Feet to Gaj: A Quick Guide for Loan Against Property Applicants2025-04-02 | 2 min

home+loan Home Loan
[N][T][T][N][T]
IGR Odisha: A Guide to Online Property Services and Registration2025-03-20 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding eNACH Mandates: Meaning, Benefits, and How it Works2025-04-03 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Conveyance Deed: Meaning, Types, Purpose, and Key Differences2025-03-06 | 3 min

home+loan Home Loan
[N][T][T][N][T]
BBMP: Full Form, History, and Role in Bangalore’s Governance2025-03-20 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding GWMC Property Tax: Payment Methods, Calculation, and Benefits2025-03-13 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Partition Deed: A Comprehensive Guide to Its Meaning, Format, and Registration Process2025-04-01 | 4 min

loan+against+property Loan Against Property
[N][T][T][N][T]
A Guide to Kaveri Online Services Portal for Property Registration in Karnataka2025-04-01 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
How to Pay MCD Property Tax in Delhi2025-04-21 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Stamp Duty and Registration Charges in Tamil Nadu2025-05-08 | 6 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding SDMC Property Tax: A Guide to Online and Offline Payment Methods2025-05-08 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Equitable Mortgage vs Registered Mortgage: Key Differences Explained2025-04-30 | 2 min

[N][T][T][N][T]
Home Loan Processing TAT – Everything You Need to Know2025-10-06 | 3 min

[N][T][T][N][T]
BDA Property Tax in Bangalore – A Complete Guide2025-10-01 | 6 min

[N][T][T][N][T]
Jantri Rate Gujarat – A Complete Guide to Land Valuation2025-09-30 | 4 min

[N][T][T][N][T]
DLC Rate Rajasthan – What You Need to Know2025-09-29 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Khasra Number Explained: How to Find It2025-01-03 | 2 min

[N][T][T][N][T]
Understanding NOC in Property Transactions2025-09-29 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Token Money: Its Importance and Key Considerations2025-01-16 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Bigha in India: Convert 1 Bigha to Square Feet, Acres, and Hectares2025-01-31 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Gift Deeds: A Comprehensive Guide to Registration and Documentation2025-01-29 | 2 min

[N][T][T][N][T]
7 Ways to Manage Household Waste and Live Sustainably2025-09-26 | 3 min

[N][T][T][N][T]
Decoding Bigha to Square Metre Conversion in India2025-09-26 | 3 min

[N][T][T][N][T]
Minimum Annual Income for Home Loan – What You Need to Know2025-09-25 | 4 min

[N][T][T][N][T]
Maximising Tax Savings with Home Loans and Rent Payments2025-09-24 | 4 min

[N][T][T][N][T]
How to Save for Your Dream Home in India?2025-09-23 | 3 min

[N][T][T][N][T]
Can You Get a Home Loan Right After Starting a New Job?2025-09-23 | 4 min

[N][T][T][N][T]
How to Get a Home Loan for Your Dream Home in India?2025-09-23 | 5 min

home+loan Home Loan
[N][T][T][N][T]
What is Fractional Homeownership?2025-06-25 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Should You Use Your Annual Bonus to Prepay Loans? Here’s What You Need to Know2025-06-25 | 6 min

home+loan Home Loan
[N][T][T][N][T]
How to Use a Prepayment Calculator Effectively?2025-06-26 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Key Benefits of Availing of a Home Loan2025-06-26 | 4 min

home+loan Home Loan
[N][T][T][N][T]
How Home Loan Rates Are Determined – What You Should Know2025-06-26 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Concept of Freehold Property in India2025-07-02 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Make Your Home Loan Work for You: A Simple Tax Declaration Guide2025-07-02 | 3 min

home+loan Home Loan
[N][T][T][N][T]
What is a Good CIBIL Score Range and Why Does It Matter?2025-07-03 | 7 min

home+loan Home Loan
[N][T][T][N][T]
4 Steps to Avoid Identity Theft and Credit Fraud2025-07-03 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Removing Credit Enquiries from CIBIL – What You Should Know2025-07-04 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Simplified Guide to Land Records in Odisha: Bhulekh Odisha ROR and BhuNaksha Verification2025-02-27 | 3 min

home+loan Home Loan
[N][T][T][N][T]
CIBIL MSME Rank Explained – Why It Matters for Your Loan Against Property Application2025-07-07 | 5 min

home+loan Home Loan
[N][T][T][N][T]
How to Get Commercial CIBIL Report – A Guide for LAP Applicants2025-07-07 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Mutation of Property: Meaning, Process, and Importance2025-03-20 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Possession Certificate: Meaning, Importance, and Application Process2025-03-20 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the ECN Number in Your CIBIL Report2025-07-08 | 3 min

home+loan Home Loan
[N][T][T][N][T]
CIBIL Score Rules – What Every Home‐Loan Applicant Should Know2025-07-08 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Top-Up Loan, Personal Loan, and Gold Loan: Understanding the Differences2025-04-11 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Your Chances of Getting a Home Loan with a Pre-Qualified Offer2025-09-10 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Practical Tips to Improve Your Home Loan Eligibility2025-09-09 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Home Loan Eligibility for Rs.35,000 Salary in India2025-09-09 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Applying for a Home Loan When Your Salary is Paid in Cash2025-09-09 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding How Home Loan Amount Depends on Salary in India2025-09-08 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Decoding the Right Home Loan Amount for Your Dream Home2025-09-08 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Getting a Home Loan When You Don’t Have Form 162025-09-15 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How Much Home Loan Can I Afford in India?2025-09-15 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Tips for a Home Loan in India – Your Complete Guide to a Smooth Application Process2025-09-12 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Rs.90 Lakh Home Loan EMI – A Complete Guide for Homebuyers2025-09-08 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Circle Rate vs. Market Rate – Understanding the Difference2025-06-17 | 4 min

home+loan Home Loan
[N][T][T][N][T]
What is the Ideal Home Loan Tenure?2025-09-05 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Minimum Salary Criteria for Affordable Home Loans2025-09-11 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Advantage of a Fixed-Rate Mortgage Loan2025-09-11 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Registration of Home Loan Agreement Explained2025-09-10 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Validity of a Pre-Qualified Home Loan – Everything You Need to Know2025-09-10 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Exploring Home Loan Eligibility: Rs.10 Lakh on Rs.15,000 Salary2025-09-15 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Locking Your Interest Rate with a Dual Interest Rate Home Loan – A Smart Way to Begin2025-09-17 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How to Lock Your Interest Rate with a Dual Interest Rate Home Loan2025-09-17 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Eligibility in India – How Much Can You Actually Borrow?2025-09-12 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Stamp Duty on Home Loan in India – What You Need to Know Before Buying a Property2025-09-12 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Eligibility on Rs.28.5 Lakh Income in India2025-09-16 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How Easy is a Home Loan Balance Transfer to a New Lender?2025-09-16 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Home Loan Balance Transfer Process2025-09-16 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Is It Safe to Buy a RERA-Approved Apartment in India?2025-09-22 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the RERA Impact on Home Loans in India2025-09-22 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Selling a Property with an Ongoing Home Loan: What You Need to Know2025-09-19 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Eligibility for Salaried Professionals with Limited Work Experience2025-09-19 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How to Improve Your CIBIL Score for a Home Loan in India?2025-09-19 | 3 min

cibil Cibil
[N][T][T][N][T]
Check CIBIL Score with PAN Card for Free, in 3 Steps2024-02-27 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Advantages for First-Time Home Buyers2023-07-14 | 4 min

cibil Cibil
[N][T][T][N][T]
How Long Does It Take to Improve a CIBIL Score2023-03-29 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Roles of Co-borrower, Co-signer, and Co-owner in Home Loans2025-03-11 | 3 min

home+loan Home Loan
[N][T][T][N][T]
A Guide to Applying for DTCP Approval for Patta Land Online2025-01-13 | 6 min

cibil Cibil
[N][T][T][N][T]
Impact Of a Co-Applicant’s CIBIL Score On Your Home Loan Application2023-01-20 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Exploring Square Feet to Centimetre Conversion for Interior Design and Construction2025-03-27 | 2 min

[N][T][T][N][T]
Difference Between Pledge vs. Hypothecation vs. Mortgage2025-09-01 | 4 min

[N][T][T][N][T]
What Does it Mean to Pledge Your Property for a Home Loan?2025-09-01 | 4 min

[N][T][T][N][T]
How to Manage Your Home Loan When Interest Rates Change2025-08-29 | 3 min

[N][T][T][N][T]
Understanding Home Loan Pre-Closure2025-08-29 | 6 min

[N][T][T][N][T]
Factors That Influence Top-up Loan Interest Rates2025-08-29 | 5 min

home+loan Home Loan
[N][T][T][N][T]
How to Pick the Best Home Loan Tenure that Suits Your Budget2023-06-29 | 5 min

home+loan Home Loan
[N][T][T][N][T]
6 Ways to Reduce Your Home Loan Interest2024-03-20 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Home Loan Settlement: What You Need to Know2025-03-13 | 2 min

cibil Cibil
[N][T][T][N][T]
Easy Ways to Maintain a Good Business Credit Score2024-01-10 | 5 min

[N][T][T][N][T]
Plot Loan vs. Home Loan – Understanding the Difference2025-08-18 | 5 min

[N][T][T][N][T]
Home Loan for a Resale Property – Your Complete Guide2025-08-18 | 6 min

[N][T][T][N][T]
Home Loan Basics – A Friendly Guide for First-Time Buyers2025-08-14 | 3 min

[N][T][T][N][T]
Land Loan vs. Home Loan – Understanding the Key Differences2025-08-14 | 2 min

[N][T][T][N][T]
Salary Certificate for Home Loan – Your Complete Guide2025-08-14 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Things to Avoid When Switching Your Home Loan2025-04-02 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Transfers: Unlocking Better Rates and Terms2025-05-07 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Property Valuation for Home Loans in India2025-03-13 | 2 min

[N][T][T][N][T]
NRI vs. Indian Resident Home Loans