Does Buying an iPhone 17 on EMI Affect Your Credit Score? Know the Truth

If you’re planning to purchase the iPhone 17 on EMI, it’s important to know that this decision could directly affect your credit score. This article explains exactly how financing a mobile on EMI is reported to credit bureaus and helps you understand the impact of your repayment behaviour.

Does Buying an iPhone 17 on EMI Affect Your Credit Score?
 

Yes, purchasing your iPhone 17 on EMI directly affects your credit score. When you opt for an EMI plan, as per RBI guidelines, lenders must report your new credit account and repayment activity to India’s credit bureaus, for example, CIBIL. This mandatory reporting is why your credit score is impacted.

How EMI Payments Can Impact Your Credit Score

Your EMI plan for the iPhone 17 can either build or damage your credit health, depending on your repayment discipline.

Positive Impact (Building Credit) 

Timely EMI payments support your credit score and help build a stronger repayment profile in several ways:

●    Builds a Repayment Track Record: Regular EMI payments add positive entries to your credit report each month. Since CIBIL factors your payment history into your score, consistently paying on time helps strengthen your credit profile.
●    Great For First-Time Borrowers: A smartphone EMI is often a new borrower’s first structured loan. This helps initiate your credit file (important if you previously had an NH [No History] or NA [Not Applicable] credit status).
●    Demonstrates Behaviour Under Small-Ticket Credit: Lenders watch how you handle low-value EMIs. A clean record improves your chances of getting future big-ticket loans, such as for a car or a home.
●    Reduces Perceived Risk: Timely EMI payments improve your repayment history, which credit bureaus consider when assessing stability.

Also Read: How Can I Buy a New Phone on Easy EMI

Negative Impact (Damaging Credit)

Late or missed EMIs can harm your credit score in several significant ways:

●    Score Drop from One Missed EMI: A single late EMI can cause a drop in your credit score, though the exact impact varies by profile. Recovery depends on consistent future repayments and may take several months or longer.
●    Long-Term Impact on Your Report: A missed payment remains visible on your credit report for up to 36 months, but its impact on your score generally reduces over time if you maintain good repayment behaviour.
●    Rapid Build-Up of Charges: Missing a credit card EMI triggers daily compounding interest and late fees, increasing your outstanding balance and weakening your repayment profile.
●    Higher Credit Utilisation Damage: If the EMI uses a large portion of your credit card limit, your utilisation ratio rises, which can further reduce your score even when later EMIs are paid on time.

Also Read: How to Choose the Best Mobile Finance Option for Your Budget in India

Now that you know the impact of EMIs on your score, you can make an informed decision about financing your dream phone. Availing a Consumer Durable Loan at partner retail stores is a convenient option, since you only pay off the exact cost of the phone over a tenure of your choice.

How to Apply for EMIs to Purchase Your iPhone 17

Follow these steps:

1.    Research and Choose: Visit a partner electronics store that offers financing options from a trusted lender.
2.    Check Eligibility: The representative at the store will help you check your eligibility based on your income and credit background.
3.    Keep Documents Ready: You will need basic KYC documents, including your PAN card, Aadhaar card, and income proof like a bank statement or salary slip.
4.    Apply for the Loan: Fill out the loan application form with the in-store representative.
5.    Verification and Approval: The lender will verify your documents and approve the loan, often within minutes. 
6.    Disbursal and Repayment: Once approved, you can complete the purchase. Your EMI repayment schedule will begin from the following month.

Also Read: Best Smartphones Under ₹30,000 in India You Can Buy on EMI

To Conclude

Buying an iPhone 17 on EMI directly affects your credit score, but you can choose the impact. When you manage repayments responsibly, it can be an effective way to build a positive credit history. The key is to ensure every EMI is paid on time.

You can also apply for an Instant Personal Loan from Poonawalla Fincorp to fulfil your purchase with minimal documentation and a competitive interest rate.

FAQs

Will my credit score go down if I buy a phone on EMI?
Your score will not necessarily go down. If you pay your EMIs on time, it can help build a positive credit history. Your score may decrease only if you miss payments or apply for too many loans at once.

How can I check my credit score?
You can check your credit score for free once a year from the official websites of credit bureaus like CIBIL, Experian, and Equifax. Or you can check it on Poonawalla Fincorp’s website for free. 

What happens if I miss one EMI payment for my iPhone?
Missing even one EMI payment will likely result in a late fee and will be reported to credit bureaus, which can lower your credit score.

Is a Consumer Durable Loan the only way to buy an iPhone on EMI?
No, you can also use credit card EMIs or an Instant Personal Loan to finance your purchase. However, Consumer Durable Loans available at retail stores are designed explicitly for such purchases.