19-Sep-2018 written by : FSI-Team
You tend to make a lot of payments every month like power bill, phone bill, Loan EMIs, credit card payments, etc. Have you even given it a thought that, are any of these transactions getting registered towards my credit report?
For example, if you miss out on your telecom bill due date and make the payment after a couple of days, you will definitely need to pay the penalties for the same, but will it get registered towards your cibil report? Same way, if you default on your personal loan due date and do not pay for a couple of months, will this transaction be registered towards your account?
There are many such financial transactions which we do not know, if they are getting registered towards your account and if they are adding up to your credit score.
Today, we will sight you bills those impact your credit score,
Usually, rent collectors do not report your timely payments to the credit bureau, so rent is never documented towards your credit report. This does not mean you delay your rent; you should make all your payments on time.
Like rents, utility bills are also not registered to the credit bureaus. If you default your utility payments, you may end up with cancelation of services or sometimes your data is passed to the debt collectors. You may receive harassment calls from the collection agencies.
Missing your phone bill payments will not affect your credit score, but instead you may have to pay penalty charges for late payment. You may also encounter service shut off.
Internet bills are never on the credit radar. If you make timely payments to the internet provider, the only benefit you will have is an uninterrupted internet service.
There are various types of insurances in the market which demand monthly payments. Though in some cases the insurance premiums are high, the transactions are not recorded on your report. Though, the insurance company may pull your credit report to determine insurance premium, depending on your score.
You must be thinking if all of the above financial transactions are not recorded, which transactions are recorded to the report? For a start, if you default on a car loan, you may end up with a low cibil score. Not only that, you may lose your car to the auto lender and trust us that is not a good situation to be in.
Just like auto loans, a mortgage loan also gets registered towards your report. Unlike auto loans, you will get more time to repay your outstanding amounts but once the damage is done, it will stay on your report for a very long time.
A student loan with no collateral, can affect your credit score a lot. A Student loan is reported every month and the more you default, the more your cibil score goes for a toss. This is why; we suggest pre-closing the student loan as soon as you get a job after education.
This can be termed as the most delicate of all the bills you pay. One default payment can affect your cibil score a lot. Once you are in the bad books of credit card payment, there is almost no chance to increase cibil score again. It is suggested to make all the card payments on time and the fewer credit cards you have the more happy life you live.
A personal loan is an unsecured loan, hence keeping the lenders at their toes. One missed payment of a personal loan can severely damage the score and can remain in the report for a very long time.
It does not matter if various bill payments are getting recorded to your report or not, what matters is that you make the payments on time and live a healthy financial life.