Missed A Credit Card Payment? How It Affects Your Credit Score And The Time Needed To Recover
A credit score, ranging from 300 to 900, shows creditworthiness. An Expert stresses timely repayment for a high score. Recovery from defaults needs discipline.
A credit score is a three-digit number that represents an individual’s creditworthiness and the likelihood of timely repayment of credit. It ranges from 300 to 900, with a higher score indicating a stronger credit profile. A high credit score improves the chances of loan or credit approval with favorable terms and lower interest rates, as it reflects sound credit behavior and responsible financial management.
Your credit score can be affected by your credit repayment history. Occasionally, missing a credit card or loan payment can impact the score.
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How Do Late Payments Impact Credit Scores?
Manish Jain, Country Managing Director of Experian India, stated that timely repayment is one of the most critical factors influencing an individual’s credit score.
He explained that delayed or missed payments may signal financial stress or weak repayment intent to lenders, potentially affecting future access to credit, and in some cases, leading to restrictions on existing credit facilities.
How Long Does It Take To Recover From A Default?
Jain mentioned that while improving a credit score is possible, it requires financial discipline and consistent repayment behavior.
The recovery timeline varies depending on individual circumstances and the severity of the default.
Does Using A Credit Card More Frequently Improve A Credit Score?
The impact of frequent credit card usage on a credit score largely depends on how the card is managed. With timely repayments, regular usage can positively contribute to credit health by demonstrating responsible credit behaviour, Jain explained.
He added that frequent usage becomes a risk if it results in overspending or missed payments, both of which can negatively impact one’s credit profile.
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