Does debit card EMI affect your credit score? understand here

Updated: 23-02-2026, 07.41 PM

What is the news?

People buy on EMI not only through credit cards but also through debit cards. Banks like HDFC, State Bank of India (SBI), Axis and ICICI offer debit card EMI facility. With this, people can buy mobile, TV or other gadgets in installments even without credit card. No credit card is required for this, money is deducted directly from your bank account. Let us know what effect EMI has on your credit score.

Debit Card EMI

How does debit card EMI work?

Debit card EMI is a facility in which you can convert the amount of any purchase into monthly installments. The bank decides a pre-approved EMI limit after looking at your savings account and transaction history. The special thing is that every month the EMI amount is deducted directly from your bank account. It does not require any separate billing. These work very differently from normal debit card spending.

What is the benefit of credit EMI?

It does not have a direct impact on your credit score, as it is not a credit line like a normal loan, but some banks treat these EMIs like short-term consumer loans and report them to the credit bureaus. In such a situation, if EMI is reported as a loan, it can affect your score. If you pay EMI on time then it can prove beneficial. It helps in improving credit score.

If this happens there will be loss

If EMIs are not paid on time or the account balance is low, the bank may impose penalty and if reported, your civil score may drop. Even if this is not reported, the bank may refuse to give further loan due to repeated payment failure. To avoid this, always consider EMI as a real loan and keep a little more balance in the account than the EMI every month.