Does EMI impact credit score?

Yes, EMIs significantly impact your credit score because every payment is reported to credit bureaus. Consistent, on-time payments demonstrate financial reliability and help increase your score. However, even a single missed or delayed EMI can negatively affect your creditworthiness and reduce your score. Impacts of EMIs on your score include:

• Payment History: Regular repayments build a strong credit profile over time.
• Credit Mix: Successfully managing installment loans diversifies your credit types.
• Financial Health: Timely closure of EMI cycles improves future loan eligibility and interest rates.