I have been paying my personal loan EMIs on time. This time I missed the EMI due to a medical emergency as I had a severe cash crunch. Would this one instance impact my cibil score?
Missing a single payment can affect your credit score but it can be a temporary effect. It all depends on your credit rating agency and the type of default you have made. For example in case of Credit Information Bureau of India Limited (CIBIL), payments delayed or missed for a period of less than 90 days are considered minor defaults. So your CIBIL score does take a negative hit but the effect is temporary allowing you time to catch up for the default.
Unfortunately, yes. Even a single missed payment can negatively affect your Credit Score. Every payment missed is reported by the bank or lender and is recorded by the credit bureau, which in turn affects your score. However, payments that are delayed or missed for a period of less than 90 days are generally deemed to be minor defaults. So, while your Credit Score will be affected, it will only be temporary as long as you continue to make regular payments.
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