Today,​ when it seems like almost everything can be bought through a payment plan, opting for a TV on easy EMI is pretty tempting. After all, it feels like you get to enjoy your TV and pay for it bit by bit at the same time, doesn’t it? However, have you ever wondered whether those seemingly insignificant EMI purchases might affect your credit score? We should thoroughly examine this.

EMIs: The New Normal

You no longer need to pay a lump sum to get yourself a TV. With the help of easy EMIs, you will be able to spread the cost through several manageable monthly instalments that will hardly disturb your budget. Tempting, isn’t it? This scheme seems to be a perfect solution, offering practical benefits without immediate financial stress. However, now we wonder how such a sweet deal could impact your credit score?

The Credit Score Equation

Before we proceed, let’s first understand what a credit score is all about. A credit score is a number that indicates how creditworthy you are. Think of it as a financial report card, where the score generally falls between 300 and 850. Lenders see high scorers as less risky. When you purchase a TV on EMI, you are indirectly engaging with the credit scoring mechanism.

Getting into debt, even if it’s just a minor one, has its pros and cons. On one hand, if you are disciplined in your EMIl payments, your credit score will likely increase. It is like getting extra … READ MORE ...