Paying Bills on the Last Day? Know the Credit Score Risks Now

April 16, 2025 By: Nisha Chawla

In today’s digital economy, your credit score is just like your Aadhaar in the financial world — without it, you can’t access loans, credit cards, or even get EMI options in many cases. Your score shows your financial honesty, and lenders trust it to decide how much loan to give you, at what interest rate, and with what terms.

While most people know that loans and credit card EMIs affect their score, many still don’t realise the impact of paying bills on the last day — or worse — after the due date. From credit cards to mobile bills and electricity payments, even small delays can damage your credit profile if you’re not careful.

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

Let’s clear one major doubt first. If you pay your credit card bill on or before the due date, even on the very last day, it does not harm your credit score. As long as your payment reaches the bank by the deadline and gets processed, it is considered on time.

But here’s where things can go wrong:

• If your bank takes time to process the payment (especially from apps like PhonePe or Paytm), your payment may reflect after the due date.
• If you pay at night and there’s a tech issue or UPI delay, it might be recorded late.
• Banks consider payment dates based on when they receive the amount, not when you initiate the transfer.

So while paying on the last day is not wrong, it is risky. It’s better to pay at least 2 days earlier to avoid unwanted surprises.

Credit Card Late Payment: Real Cost on Your Credit Report

Missing your credit card due date can do more damage than you think. Here’s how it hits:

1. Late Payment Fee

Depending on your credit card provider, you could be charged ₹500 to ₹1300 or more for missing your due date.

2. High Interest Rate

Credit cards charge interest up to 36-42% annually. Once your payment is late, the interest gets added to your outstanding balance immediately.

3. Credit Score Drop

Even one late payment is recorded in your credit history and reported to CIBIL, Experian, and other credit bureaus. Your credit score can fall by 50-100 points easily.

4. DPD Mark in Report

Your credit report will show DPD (Days Past Due) — for example: 30, 60, or 90 days. This stays on your report for years and affects your future loan chances.

What About Utility Bills? Do Late Payments Matter?

Now comes the next big question — what about regular utility bills like:

• Electricity
• Water
• Broadband
• Postpaid mobile bills

Earlier, late payments of these bills didn’t matter to credit bureaus. But now things are changing:

1. Postpaid Bills & Credit Score

If you use a postpaid mobile connection and miss your payment date regularly, your telecom company may report it to credit agencies. This can start affecting your credit history, especially if the delay goes beyond 30 days.

2. Electricity Bills

In some cities, power companies are working with credit bureaus and fintech apps. If you are late multiple times or have large pending dues, it might be reported in the near future.

3. BNPL & Utility Apps

If you’re paying your utility bills through apps like PayLater, Simpl, LazyPay, or Slice — remember, these are credit-based platforms. Any delay in payment will 100% impact your credit score because they report every missed payment to credit bureaus.

So even if your electricity board doesn’t report yet, your credit habits around bill payments are now more visible than ever.

What is a Safe Way to Pay Credit Card and Utility Bills?

To avoid all the risks mentioned above, follow these smart tips:

✅ Pay 2-3 Days Before Due Date

Don’t wait till the last minute. Online transactions may delay due to bank holidays or UPI issues. Always give buffer time.

✅ Use Auto-Pay for Credit Card EMIs

If you forget due dates, enable auto-debit from your bank account. Make sure your account has enough balance.

✅ Track Bills Through One App

Use apps like Cred, PhonePe, Paytm, or Bharat BillPay to manage all your bill payments from one place.

✅ Check Email & SMS Reminders

Almost every credit card company and utility provider sends reminders. Don’t ignore them.

What Happens If You Miss a Bill Payment?

Let’s understand the impact of missing a bill — not just on your credit score, but on your day-to-day finances:

➤ Credit Card Late Payment

• Extra charges + interest + score damage.
• Possible suspension of card in case of repeated default.
• Recovery calls from collection agents.

➤ Mobile or Internet Bill

• Late fees + disconnection.
• Poor service record with the provider.
• In future, they may reject your request for postpaid upgrade or new connections.

➤ Electricity or Water Bill

• Penalty charges + disconnection.
• Government may delay reconnection even after payment.
• Poor record may be used during property or rent verifications.

Understanding Credit Score Building Habits

Your credit score is not built overnight. It is based on:

• Timely payments (credit card, EMI, and now utility bills).
• Low credit usage (don’t max out your cards).
• Long credit history (older accounts boost score).
• Healthy credit mix (a mix of secured and unsecured loans).
• Minimal hard enquiries (don’t apply for too many loans at once).

How Can You Recover a Damaged Credit Score?

If you’ve missed bills or credit card payments in the past, all is not lost. You can rebuild your credit score by:

• Paying all dues immediately, including utility and mobile bills.
• Not taking fresh credit for 6-12 months.
• Using a secured credit card and repaying on time.
• Checking your credit report regularly and disputing any errors.

Final Words for Salaried People, Students & Families

Whether you’re a salaried employee, a student using a credit card for the first time, or a homemaker paying monthly bills — it’s important to realise that every payment habit matters. Credit is becoming more transparent, and financial institutions are tracking your repayment style through multiple channels.

A small delay today might result in a rejected loan tomorrow. But a consistent payment record builds financial strength for life.