How does a late payment affect a credit score?

A late payment can significantly lower your credit score because payment history is a primary factor used by credit bureaus like CIBIL. When a payment is delayed beyond 30 days, lenders report it to credit bureaus, leading to:

• Reduced Creditworthiness: A lower score makes it harder to qualify for future loans or credit cards.
• Higher Interest Rates: Lenders may charge higher interest rates as you are perceived as a high-risk borrower.
• Long-term Record: Late payments can remain on your credit report for several years, impacting your financial profile.