How do EMIs affect my credit score and loan eligibility?

Short answer
EMIs affect your credit score mainly through payment behaviour. Pay on time and your score improves. Miss payments and loan eligibility drops.

On-Time EMIs Help Your Credit Score

Every EMI you pay on time is reported to credit bureaus. This builds a positive repayment history, which is the biggest factor in your credit score. Banks like borrowers who show consistency. Regular EMIs signal that you are reliable and low risk. Score stable rehta hai, future loans easier ho jaate hain.

Missed or Late EMIs Hurt Your Score

If an EMI is late by a few days, it may not immediately show as default. But if it crosses 30 days, it can be reported as missed. Even one missed EMI can pull your score down. Zyada delay hua toh impact zyada strong hota hai. Recovery takes time, not instant.

Too Many EMIs Can Reduce Eligibility

Even if you pay all EMIs on time, having too many loans running together can hurt eligibility. Banks check your EMI to income ratio. If a big part of your salary already goes into EMIs, lenders feel you are stretched. Income same hai but obligations zyada lagte hain.

Loan Type Also Matters

Home loan EMIs usually help your profile because they are long term and secured. Personal loan and credit card EMIs are riskier if overused. Balance hona chahiye. Sirf unsecured loans dikhenge toh lenders cautious ho jaate hain.

How to Keep EMI Impact Healthy

Keep EMIs within your comfort zone. Avoid missing due dates. Close small loans when possible. EMI control mein ho, score automatically healthy rahega.

Final Takeaway

EMIs are not bad for your credit score. Poor EMI management is. Time pe payment rakho, overloading mat karo, and loan eligibility naturally improve hoti rahegi. Thoda discipline long term mein kaafi kaam aata hai.