New Delhi, Jan. 7 -- Timely payment of loan EMIs and credit card outstanding is one of the most important things that an individual must do to maintain or build their credit score. Timely payment has the highest weight in calculating an individual's credit score. However, when an individual misses a loan EMI or credit card outstanding payment, the bank categorises it as a special mention account (SMA) in the individual's credit report. The SMA undergoes various stages before being categorised as a non-performing asset (NPA).

In this article, we will understand what an SMA is, the stages that it goes through, and its impact on your credit score and new credit applications.

If an individual has missed a loan EMI payment or a credit card b...