Mobile Bill Payments: Know How It Affects Credit Score In India

Outlook Money

Credit Score

A Good credit score is very important for individuals who plan to get loans sanctioned or get credit cards issued. 

Credit score

Mobile Bills Affect Credit Scores

Mobile bill payments may not directly impact the credit score but these affect the financial responsibility of an individual. Mobile bill payments do not affect an individual’s credit utilisation ratio or overall credit score.

Credit Scores

Credit scoring models

Credit scoring models are changing and there is a possibility that utility bill payments, including mobile bills, can be used to access individuals without a traditional credit history. 

Credit scoring models

Risk of Unpaid Mobile Bills

Failing to clear dues of mobile bill payments can have a negative impact on the credit score. If the bills are sent to the agency, then it might reflect on the credit score.

Risks

Maintain high credit score

For maintaining a high credit score, it is suggested to clear credit card bills and loan EMIs timely and maintain a credit utilisation ratio below 30 per cent.

Loan Defaults: Know How It Can Affect Your Finances And Credit Score

Read More