Don’t Be Late. But If You Are…This Might Help
Your CIBIL or credit score can be affected by various factors. And, one of the most important factors is late payments. Paying your credit card bills or loan EMIs late can affect your overall CIBIL score, thus dropping your credit score from many points.
Therefore, it is often advised that if you want to achieve or maintain a high credit score, you should regularly make your payments within the stipulated time period. This way you can save yourself from poor CIBIL scores.
However, late payment is not the only factor that can result in bad credit scores. There are various other things that can lower your credit score, such as taking too much credit, high credit utilization ratio, spending too much on your credit card, etc. In order to obtain a high credit score, you should avoid all these things.
But, what if you are already late in making your credit card payment? Or, what if you have missed or forget your credit card payment? In such a case, you need to be more cautious and plan out your credit behavior accordingly. Do not just sit down and worry over your past mistake of not paying your credit bill on time. Instead, utilize this time to improve your CIBIL score in future.
But, how can you do that? How can you prevent your late payment from harming your credit score? We have listed the three ways through which you can successfully maintain your CIBIL score, even after making a late payment. Find out how you can do this, if you have unpaid credit card bills piled up on your desk.
1. Continue making your payments
The first step towards tackling your late credit card payment is to keep on paying your credit card bills, along with the ones you have not paid yet. When you have paid all of the past credit card bills, make sure that you pay the current and future ones on time and that too in full. And, this just not applies to one of your credit cards, but all of them, even your other credit types, such as loans.
You will notice that if you do this consistently, your CIBIL score will increase over time. And, in case, you miss your payments because you forget about them, you can set a reminder on your phone of the date when your payment is due. You can also set up automatic payments, so that the amount can be deducted from your account directly every month, leaving you free of any worries.
2. Regularly examine your credit report
You should regularly check your credit report. This will tell you how much you are lagging behind your set target of high CIBIL score and thus will help you to improve your credit score accordingly. This way you can also ensure that your late payments decrease. Additionally, through this you can keep a tab on your payment history.
3. Learn from your mistakes
In the great scheme of things, missing one credit card payment is comparatively a small mistake. You should not get disappointed over it and rather should make a point to learn from your mistake, so that you do not repeat it in future.
Although, now you may have to pay late fees along with some other penalties, if you right your mistake soon enough, you can save your future credit score from falling. And, if it is the first time that you have defaulted on your credit card payment, your creditor may even waive your penalties and fees. So, ensure that you pay your next credit card bill on time and in full.
Through these three ways, you can gradually increase your creditworthiness over time, without causing lasting damage to your CIBIL score.