Last Day Credit Card Bill? Know How It Impacts Your Credit Score!

In today’s world, where EMI, credit cards, and digital lending are part of daily life, your credit score acts like a financial report card. Whether you want a home loan, a personal loan, or even a credit card with good limits, the lender will always check your credit score. The higher your score, the better your chances of loan approval at a good interest rate.

This makes it very important to understand what factors affect your credit score. Many people know that repaying EMIs and credit card dues on time improves credit scores. But what most people ignore is — when you pay, how late is too late, and what about those small bills like electricity and mobile recharge?

Does Paying Credit Card Bill on the Last Day Harm Your Credit Score?

Let’s start with a very common situation. You have a credit card, and the due date is mentioned clearly in the bill statement. Suppose the last date is the 10th of every month, and you always pay on the 10th by evening — does it hurt your credit score?

The simple answer is: No, if you pay on or before the due date, even on the last day, it does not hurt your credit score. Credit bureaus like CIBIL, Experian, and CRIF High Mark do not penalize you if the payment is done within the due date.

However, here are a few points you must remember:

• If you make the payment late in the day and it reflects the next day on the card issuer’s system, it can be marked as delayed.
• Some banks take up to 2 working days to reflect payments made through third-party apps.
• If your payment fails due to technical issues or insufficient funds, it can be considered as missed, even if attempted on time.

So, while the last day is technically not a problem, playing too close to the deadline is risky. To be safe, it’s always better to pay 2-3 days before the due date.

What Happens If You Miss the Due Date on a Credit Card?

Missing a credit card bill even by one day can bring penalties and a credit score hit. Here’s what happens:

1. Late Payment Charges: Most credit cards charge late payment fees ranging from Rs. 100 to Rs. 1300, depending on your outstanding balance.
2. Interest on Outstanding: Credit card interest rates go as high as 36-42% per annum. If you miss the payment, the high interest starts accumulating.
3. Impact on Credit Score: Even one delayed payment beyond 30 days is reported to credit bureaus. It can lower your credit score by 50–100 points.
4. Credit History Impact: Your credit report shows payment history. A “DPD” (Days Past Due) entry like 30, 60, or 90 days reflects poorly for years.

Late Utility Bill Payments – Do They Affect Credit Score?

A common myth is that utility bills like mobile recharge, DTH, electricity, water, and gas bills do not impact credit score. But this is changing.

Earlier, credit bureaus like CIBIL used only loans and credit cards to create your credit score. But now, they are slowly integrating other payment data through platforms like Bharat BillPay and telecom aggregators. Here’s what you must know:

1. Postpaid Mobile Bills: If your telecom provider reports to credit agencies, late payment may affect your score.
2. Electricity Bills in Urban Areas: In some metro cities, late payments are shared with agencies when you apply for home loans or rentals.
3. Utility Bill Loan Add-Ons: If you are using services like “Buy Now Pay Later” (BNPL) or paying utility bills via credit line apps like Slice or LazyPay, these are definitely credit-linked, and delays affect scores.

So even if your electricity board doesn’t report delays now, habits of delayed bill payment can become harmful in the long term, especially as data-sharing expands.

Why Credit Card Usage Behaviour Matters

It’s not just about paying on time. How you use your credit card also affects your credit score.

1. Credit Utilisation Ratio: This means how much of your total credit limit you are using. If your limit is ₹1 lakh and you use Rs. 90,000 regularly, it sends a negative signal. Keep it under 30% for better scores.
2. Paying Minimum Due Only: Credit card statements show two amounts — total due and minimum due. If you only pay the minimum, the remaining amount attracts high interest, and over time, your credit health becomes poor.
3. Multiple Cards, High Usage: Having many cards and using most of their limits may seem fine, but lenders see you as credit-hungry. This can reduce your score and increase the chances of loan rejection.

What Is the Ideal Credit Behaviour?

1. Always Pay in Full and On Time: Avoid minimum dues and last-minute stress. Schedule auto-pay 3 days before the due date.
2. Keep Credit Usage Low: If you cross 30% usage, repay early or request a higher credit limit.
3. Track Your Credit Report: Check your credit report every 3 months from platforms like CIBIL, Experian or CRIF. Dispute errors quickly.
4. Avoid Hard Enquiries Often: Each time you apply for a loan, the lender checks your credit — this is called a hard enquiry. Too many of them reduce your score.
5. Build Long-Term Credit History: Use your credit card regularly but responsibly. Longer usage with timely payments increases the score.

How to Fix a Drop in Credit Score?

Even if your score drops due to a missed payment or other reasons, it can be improved. But it takes time and consistency.

• Clear All Overdues: The first step is to clear all unpaid EMIs or card dues.
• Avoid New Loans for 6 Months: Focus on building repayment history without taking fresh loans.
• Pay All Bills Early: Not just credit card and EMIs, but also mobile, electricity, and broadband bills.
• Use Low Limit Credit Cards Wisely: Make 1-2 purchases monthly and repay fully before the due date.

Mobile Apps That Can Help You Track Payments

1. CRED: Helps track credit card due dates and rewards you for timely payments.
2. OneScore: Free credit report tracker and score improvement tips.
3. Bharat BillPay: Pay all your utility bills in one place and track due dates.
4. Paytm and PhonePe: Send reminders and auto-debit for credit cards and utility bills.

How Young Professionals Can Build a Credit Score Early

Many people in their 20s delay credit building. But starting early gives you an edge. Here’s how young professionals can start:

• Get a credit card with a small limit and use it for regular expenses like fuel, groceries, or bills.
• Repay the full amount before the due date every month.
• Take a small consumer durable loan and repay it in EMIs.
• Do not apply for too many loans or cards in one go.

By the time you turn 30, you will have a solid credit history that makes you eligible for car loans, home loans, and personal loans at better rates.