Paytm Postpaid: All You Need To Know About Its Impact On Credit Score

Paytm Postpaid is an easy option to get instant access to credit. It provides you the convenience of buying now and paying later when paying bills, financing travel expenses, grocery shopping and more. This facility works like a credit card and gives you up to ₹60,000. 

It is important to note that it can impact your credit score negatively or positively, based on whether you default or repay on time. Paytm Postpaid charges include a late payment fee with every delay in payment. In addition, you may need to pay a convenience or platform fee depending on your purchases. 

If you understand how this works, you can avoid such situations and use this service confidently. You can also choose between it and other credit facilities based on your requirements. 

What is Paytm Postpaid Service?

Paytm Loan is a short-term credit service provided to select customers. Paytm rolled out this service by collaborating with non-banking financial institutions. Here are some of its features: 

• You can use it for both online and offline payments at your convenience at more than 1 crore stores, apps and websites 
• Paytm provides this facility without any interest rate and minimum convenience fee
• You need to repay the amount within 30 days; otherwise, it will attract late payment fees of up to ₹750 and may lead to your account getting blocked
• This service can affect your credit score and your repayment information is shared with credit bureaus 
• If you default or delay in repaying, your credit score will fall

Does Paytm Postpaid Affect Your Credit Score?

Since it works similarly to a credit facility, it does impact your credit history. Take a look at further details below: 

• If you default on repayment, Paytm will block your account and restrict you from using further postpaid services
• The late payment fee depends on the balance you owe and also includes GST
• Upon multiple defaults for a prolonged period, Paytm has the right to opt for legal actions like:
  • Using collecting agents 
  • Starting legal litigation to collect the money you owe
  • Issuing notice for repayment
• Multiple defaults can cause debt accumulation

Any default will have consequences. Thus, missing the due date or delaying a payment counts as default. Every default payment will be reported to the credit bureaus and will remain on your credit report for 7 years.

When you default on a post-payment facility, your credit score can decrease by 100 points. If you default several times, it can affect your credit score drastically. It may take a long time to recover from the adverse effect due to multiple default payments, even if you start repaying new credit on time. So, be cautious before you opt for it. 

Steps to Take to Avoid Such Situations

Here are some practical ways you can avoid damage to your credit score when using Paytm postpaid. 

• Set reminder alerts before the due dates
• Use it to manage your expenses, but stay away from overspending
• Compare Paytm postpaid charges with credit card interest rates, late payment fees and more to make an informed financial decision 

By paying bills on time and keeping a check on due dates, you can use this Paytm facility in your favour. However, if you want a repayment window of more than 30 days, consider other options. 

For instance, you can get an interest-free period of up to 50 days with the Fibe Axis Bank Credit Card. Not only does it come with zero annual or joining fee, but it also offers you perks like up to 3% cashback. You can also get benefits like a waiver of fuel surcharge and free access to domestic airport lounges. 

As India’s first numberless credit card, you can also access increased security with this card. 

So, what are you waiting for? Download the Fibe App or register on our website get it now and 

enjoy offers from a range of brands like Swiggy, Myntra, Flipkart and more! 

FAQs on Paytm Postpaid on Credit Score

What are the consequences of not paying your Paytm Postpaid bill?

If you miss the due date or delay a payment, you will need to pay a late fee. Your credit score may also dip. 

Why is CIBIL required for Paytm Postpaid?

There is no CIBIL score required for Paytm postpaid. But if you default, it affects your credit score. 

Does activating Paytm Postpaid impact your credit score?

If you repay on time, i.e. by the due date, Paytm Postpaid doesn’t impact your credit score negatively. In fact, you can use it to build your credit score. 

What credit score is needed for Paytm Postpaid?

There is no credit score or credit history required to access the Paytm Postpaid service.