Good credit scores are of great value when applying for credit cards and loans in India. While repayment of loans and credit cards make up most of your credit scores, people often ask if they will remain reputable even if they resolve bills like mobile bills. How will your mobile bill affect your credit score? Is there any relationship between the two? This is explained in detail below.
Now, first, it is important to be clear that mobile bills will not directly increase your credit score in India. On-time payments of mobile bills can still actively reflect on your overall credibility, but not reflected in your credit score. It also won’t affect your credit utilization.
Payments for credit card bills, loan EMIs and other credit transactions are mainly considered by Indian credit information companies such as CIRF High Mark, Experian, Equifax and Cibil, while determining credit scores.
Future development of credit scores
To determine good credit, there are some other credit scoring models in progress and bills related to utilities such as mobile bills will be considered. These models will be designed to provide credit scores for individuals who do not have traditional credit history. These models are currently developing and have not been launched on a large scale in India.
What are the risks of unpaid bills?
While paying your mobile bill in time will not improve your credit score, if you forward the bill to the collection agency, a bill that is delayed can adversely affect your credit report or credit score. The amount in the owed payment can then show your credit report and will lower your credit score. Ultimately, it’s about repaying the money or service you borrowed.
Therefore, conclude that your mobile bill will not directly affect your credit score. Nevertheless, as a standard practice, always be careful to make sure your name has no delays in payments so that you do not invite you to have a hard inquiries about your credit profile and offer a simple loan with minimal possible interest rate terms.
Maintain good credit score
To maintain a good credit score, focus on timely payment of credit card bills and loan EMI. Make sure your credit utilization is below 30% and avoid frequent credit queries. A high credit score (usually above 750) is considered excellent and increases the chances of getting a loan and credit card on favorable terms and lower interest rates.
Other tips for credit health
In addition to paying your credit bills, it is best to review your credit report at consistent intervals for updates and you can detect any possible differences.
Additionally, you are usually entitled to a free credit report from a credit reporting agency once a year. For more details and complete clarity on this, you should consider contacting your respective credit rating agencies. A long credit history and good diversity of different credits can also help improve your credit score. This way, you can have healthy credit reports and more financial opportunities.
