Failed EMIs: The Hidden Costs & Credit Score Damage You Can't Ignore

• Automatic EMI failures due to insufficient balance incur bank penalties and lender late fees.
• Repeated failures signal financial struggle to lenders, leading to reminder calls and emails.
• Delayed payments are reported to credit bureaus like CIBIL, lowering your credit score.
• A low credit score makes future loans harder to get or available at higher interest rates.
• Maintain a buffer or a separate account for EMIs to prevent these financial setbacks.