INCOME TAX17 Sept 2026
Why your credit score can drop despite paying every EMI on time | Mint
Even if you pay every EMI and card bill on time, your credit score can still fall. High credit use, many loan inquiries, closed old cards and reporting errors all pull it down. The Reserve Bank of India's (RBI) fortnightly credit reporting rule, effective January 2025, means these changes now show up faster. So keep usage low and check your report for errors.
Key Statutory Highlights
- Paying EMIs and credit card bills on time is only one part of building a healthy credit score.
- High credit utilisation, several loan inquiries in a short period, and closing old cards can all lower your score.
- Checking your own credit report counts as a soft inquiry and does not affect your score.
Actionable Advice for Taxpayers / Founders:Review your credit report for errors and keep your card usage under about 30% of your limit where you can; if a drop looks wrong, raise it with your lender or the credit bureau.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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