How Mobile Bill Payments Affect Your Credit Score in India

Having a good credit score is imperative in India if an individual wishes to get loans sanctioned or get a credit card issued. Various factors affect an individual’s credit score, including loan repayments and credit card usage, primarily determining credit scores. Many wonder whether paying mobile bills affects their creditworthiness.

Do Mobile Bills Affect Credit Scores?

While mobile bill payment activities may not directly influence the credit score of an Individual living in India. But timely payments are usually seen as a sign of financial responsibility. Mobile bills are not recorded by credit bureaus such as CIBIL, Experian, Equifax, or CRIF High Mark. Therefore, they do not affect an individual’s credit utilisation ratio or overall credit score.

Some credit scoring models are changing and they may consider utility bill payments, including mobile bills, to assess individuals without a traditional credit history. These models, however, are still in the testing phase and have not been widely implemented in India.

Risks of Unpaid Mobile Bills

Despite the fact that paying mobile bills on time won’t improve an individual’s credit score, failing to clear dues in time might have a negative impact. If overdue bills are sent to the collection agency, it is likely to be reflected on the credit report. This has a chance of impacting the credit score negatively. Poor credit history can make it hard to avail of loans or credit cards with favourable conditions.

How to Maintain a High Credit Score

What to do to maintain a strong credit score:

• Clear credit card bills and loan EMI payments timely

• It is advisable to maintain a credit utilisation ratio below 30 per cent

• An individual should avoid multiple credit inquiries in a short period.

• Good to sustain a variety of credit accounts

Ideally, a credit score above 750 is known as excellent in India. It also increases your chances of securing loans at lower interest rates.

Tracking Credit Health

Regularly revisiting the credit report can help an individual maintain accuracy and spot any potential discrepancies. Usually, credit bureaus in India give one free credit report per year. 

While mobile bill payments do not directly affect an individual’s credit score as of now. Maintaining good financial habits across all payments can contribute to overall credit health.