Why Your Credit Score Can Drop Even If You Pay Every EMI On Time
A spotless EMI payment history may not shield your credit score from a dip. Several factors influence你的 score beyond timely installments.
- High credit utilization on credit cards and other revolving limits
- Multiple hard inquiries for new credit within a short period
- Closing old or unused cards, which lowers available credit and can shorten your credit history
- Errors or inconsistencies in credit reports that drag down your score
- Faster reporting cycles that reflect changes sooner, such as new regulatory rules
In India, the Reserve Bank will roll out fortnightly credit reporting from January 2025, meaning score updates can appear more quickly. To safeguard your score, keep utilization under control, review your reports for mistakes, and avoid unnecessary new credit applications.
