Missing an Equated Monthly Installment (EMI) is more than just a minor oversight; it is a significant event that can have lasting repercussions on your credit score. According to Raj P Narayanam, Executive Chairman of Zaggle, a single missed EMI can reduce your credit score by 50 to 100 points, and this negative mark can linger on your credit report for up to three years. Lenders today evaluate not only your credit score but also your payment behavior, meaning a pattern of missed payments can indicate financial distress and negatively affect future loan applications and interest rate negotiations. To mitigate the risk of missed payments, borrowers are advised to maintain a buffer in their auto-debit accounts, set low-balance alerts, and act quickly if a payment is missed. Recovery is possible, but it requires 12 to 18 months of consistent, on-time repayments. Therefore, treating your EMI dates as non-negotiable is essential for maintaining a healthy credit score.