The Reserve Bank of India (RBI) has introduced new rules to make credit score updates faster and more accurate. From January 1, 2025, banks and financial institutions must update credit bureaus every 15 days instead of once a month.
This change will help borrowers by ensuring that their credit score reflects recent financial behavior more quickly, reducing delays that previously affected loan approvals and creditworthiness.
🔹 Key Changes in CIBIL Score Reporting
✅ 1. Faster Credit Score Updates
- Previously, credit bureaus updated scores once a month.
- Now, banks must report repayment data every 15 days, leading to faster updates for borrowers.
- If you repay a loan or credit card bill on time, your CIBIL score will improve quickly.
✅ 2. More Accurate Data for Banks
- Banks will now have real-time financial data to make better lending decisions.
- Borrowers with good repayment history will benefit from faster loan approvals.
✅ 3. Control Over Defaults & Loan Fraud
- The earlier 40-day delay in monthly reporting allowed banks to make decisions based on outdated data.
- Now, banks can monitor financial behavior in real time, reducing risks of loan fraud or defaults.
✅ 4. Crackdown on ‘Evergreening’
- Evergreening is when borrowers take a new loan to pay off an old loan, artificially improving their credit score.
- The new rule prevents evergreening, ensuring only genuine loan repayments count towards creditworthiness.
🔹 Understanding Credit Score Categories
Your CIBIL score ranges from 300 to 900. A higher score means better creditworthiness.
| Score | Category | What It Means |
|---|---|---|
| 300-579 | Poor | High risk of loan rejection |
| 580-669 | Average | Loan approval possible but with high interest rates |
| 670-739 | Good | Decent credit profile, moderate loan approval chances |
| 740-799 | Very Good | Banks will offer better loan terms |
| 800+ | Excellent | Easy loan approvals & lowest interest rates |
💡 Tip: Aim for a score of 750 or above to get better loan offers & lower interest rates.
🔹 How to Improve Your CIBIL Score?
With the new 15-day reporting system, you can improve your credit score faster by following these tips:
📌 1. Pay Bills & EMIs on Time
- Make timely payments for credit cards, loans, and EMIs.
- Even one missed payment can reduce your score.
📌 2. Reduce Credit Card Utilization
- Keep your credit card usage below 30% of your total credit limit.
- Example: If your credit limit is ₹1,00,000, avoid spending more than ₹30,000 per month.
📌 3. Avoid Too Many Loan Applications
- Every loan inquiry slightly reduces your score.
- Only apply for loans when necessary.
📌 4. Maintain a Long Credit History
- Do not close old credit cards if they have a good repayment history.
- A longer credit history improves your score.
📌 5. Diversify Your Credit Mix
- Have a mix of secured (home, car loan) and unsecured loans (credit card, personal loan).
- A balanced portfolio improves creditworthiness.
📌 6. Check Your CIBIL Report Regularly
- Mistakes in credit reports can affect your score.
- Check your CIBIL report every 3-6 months and dispute errors immediately.
🔹 Benefits of RBI’s New CIBIL Score Rules
✅ Faster credit score updates for borrowers.
✅ Better loan approval chances for those with good repayment habits.
✅ Banks can make more accurate lending decisions.
✅ Reduces fraud and prevents fake credit score boosts.
🔹 Final Thoughts
📌 The new RBI rule of 15-day credit score updates will help borrowers see quick improvements in their CIBIL scores if they maintain good financial habits.
📌 If you want better loan offers, start improving your score today by paying bills on time, reducing credit usage, and keeping a clean financial record. 🚀
📢 Check your CIBIL score regularly & stay financially strong! 💰
