With the current impending changes to CIBIL scores in the year 2025, learning the new rules of accessing a loan or availing of a credit card becomes more necessary than ever. RBI has implemented a number of changes in credit so that the system is fair, transparent and to be user-friendly. And here is a plain English rundown of what is new and what it means to you.
Faster Updates to Your Score
In the past you had to update your CIBIL score once a month. It is now updated after every 15 days. This implies that when you make a loan payment/a credit card payment, you will see the score rise more quickly. It makes lending institutions get a glimpse of your recent financial activity.
You’ll Know When Someone Checks Your Score
You will receive an SMS or email any time your credit report is checked by a bank, a lender or even a fintech app. This keeps you safe of frauds and you are able to monitor who is accessing your financial information.
Clear Reasons for Loan Rejection
In case your application to borrow money in the form of a loan is turned down or your credit card application is declined the bank is now obliged to inform you the reason. You will get a written explanation whether it is just the low score, or unstable income, too much debt. This assists you in comprehending where the errors have taken place and what could be done to rectify it.
One Free Credit Report Every Year
All the credit bureaus are supposed to provide you with one free comprehensive credit report annually. It is readily available in their web sites. This would allow you to review your score and identify the mistakes and manage finances in a better manner.
Fixing Mistakes Made Easier
Suppose you have a false statement in your credit report (such as having incorrect loan entry or a payment that fails to appear), in such a case now you have 30 days to get it all corrected. And unless the bureau repairs it before they are able, then they might have to pay you. This is to ensure that the score represents you the way you are in real world financial conduct.
No More Auto-Rejections
Lenders will not be able to turn your loan application down because you have a low score. Your application must be reviewed by a human and other attributes such as organic income and the amount of debt are considered. This increases the number of people that have an equal opportunity to be approved.
Why This Matters
CIBIL score is a type of report card in the financial world. It interferes with the loans, credit cards and even jobs. Under these new rules, you will be in greater control, there will be extra protection and things will be clearer. That is why pay your bills on time, monitor your score and know your rights.
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