Does Paytm Postpaid Affect CIBIL Score

Paytm postpaid does affect your CIBIL score just like any other credit product. This means that your credit score will be impacted by Paytm postpaid. Additionally, does non-payment of phone bill affect CIBIL score? Continue reading to find out!

How Does Paytm Postpaid Affect CIBIL Score

Paytm postpaid is just like any other loan agreement between you and the lender. So, yes using paytm postpaid will affect your credit score like taking any other type of credit. 

If you happen to default on this, it will be reported to the credit bureaus and will have a negative impact on your score. Similarly, if you make late payments, you will have to incur late fees like any usual loan. 

Thus, it is important to use this service with caution as you might end up lowering your CIBIL score if you don’t pay off the dues on time. 

What is Paytm Postpaid?

Paytm postpaid is a service rolled out by Paytm for its selected customers. It is a ‘Buy Now Pay Later’ facility, or a line of credit that you can utilize at your convenience. You can use it to make both online and offline purchases.

There is some nominal convenience fee, but other than that no interest will be charged if payments are made within 30 days. Missing the due date will incur penalties and further delaying may lead to your account getting blocked. 

Does Non-payment of Phone Bill Affect CIBIL Score

Do you have a postpaid connection and are curious ‘how does non-payment of phone bill affect CIBIL score’?

The straightforward answer is phone bills do not have an impact on your credit history. Utility bills like phone and electricity are not considered while calculating your CIBIL score. 

However, it is advisable to pay all your bills on time so that they don’t pile up. Some utility bills also might require you to pay late fees if you delay payments. Thus, in order to maintain good financial health, consider paying your bills on time even if they don’t impact your CIBIL score. 

How to Maintain a Good CIBIL Score

Having a good CIBIL score can be a great help if you are looking for credit products. But what affects your CIBIL score and how can you improve it?

Here are some tips that can help you to build a good CIBIL score - 

• Pay all your EMIs and credit card bills within the due date

• If you are having difficulty paying off the total bill on a certain month, consider paying atleast  the minimum amount within the due date

• Plan your loans in advance, and don’t apply for multiple loans at once

• Calculate your EMIs in advance so that you’re sure that the loan won’t become burdensome on your finances

• Check your CIBIL report regularly and if you see any errors, get them rectified by raising a query 

• Build a mix of credit by taking secured, unsecured loans, and credit cards

• Try keeping your credit utilization ratio below 30%

• Avoid settling your loans

The Paytm postpaid service can impact your CIBIL score, just like any other credit facility. Paying your Paytm postpaid bills on time can contribute to a positive credit history and can improve the CIBIL score. 

Conversely, non-payment or delayed payment of phone bills do not have a negative effect on the CIBIL score. But you should pay them on time nonetheless, so that they don’t pile up. 

By maintaining timely payments and a good credit history, you can improve your chances of accessing credit facilities at favorable terms in the future.