Does emi on credit card affect cibil score?
I had the same question when I opted for the EMI payment option to pay my credit card bill a few months back.
Then, I started doing research, spoke with my relative, a banker, and learned that an EMI on a credit card does not directly affect your CIBIL score.
Instead, you can create a positive impact by making your EMI payments on time. Suppose you bought a luxury watch worth ₹70,000 with your credit card and selected the EMI facility to repay. It shows your planned repayment behaviour, which is actually good in the eyes of your lenders.
As a result, you not only strengthen your creditworthiness but also increase your chances of getting approvals for future loans or credit.
So, I discovered 3 advantages of converting credit card dues into EMIs:
- Immediate relief from financial burden.
- Avail a lower interest rate if you pay the minimum amount.
- Help you make better financial decisions and ensure planned repayments.
The only disadvantages you face are the extra cost involved. Interest on EMIs, processing fees, and GST all add up, making your purchase more expensive than it looks at first. Plus, it locks your credit limit until you finish your EMI tenure.
And honestly, if you’ve chosen a longer repayment period, it can start to feel like a long-term financial commitment.