When does the CIBIL Credit Score Update?
A CIBIL credit score is one of the most important aspects of your entire financial health. And hence, every lender and financial institution assesses your CIBIL credit report whenever you apply for a loan or credit card. All of your repayment history is used to build your credit score. However, CIBIL updates your credit score periodically and for you to see the change in the report, you may have to wait for some time.
CIBIL credit score is the major indicator of how well you are managing your personal finances. It helps the lenders and banks to understand the way you have been dealing with your money. Not only that, it also helps them to have an idea whether you will be able to repay the amount that you are asking to borrow from them. Knowing whether you can repay the debt or not is important and hence, your CIBIL credit score must be good enough to give them a positive impression of your financial capabilities.
Let us understand how often a CIBIL credit score gets updated in detail.
Why is it Important to have a Good CIBIL Credit Score?
Your credit score is a measurement of your creditworthiness and general financial health. Building a good CIBIL credit score is essential because it's a fundamental component of your financial identity. A strong CIBIL credit score might give you an advantage when applying for loans, while a bad credit score can increase the cost of your financial transactions including a credit card.
Having a good CIBIL credit score will help you in getting loans at the best interest rates while a bad score may land you up with offers with high interest rates. You may also not get the credit limit you had requested for while applying for a credit card with a poor credit score.
How often does your CIBIL Credit Score Update?
Whenever you take out a loan or any other type of credit, it gets reported to CIBIL and other credit rating agencies in the country. CIBIL then keeps updating your report as per your repayment behavior. That means, if you delay your repayment or miss a single deadline, it is reflected on your CIBIL credit report and a few points get knocked off from your credit score.
Generally, there could be two situations for the CIBIL score updation:
a) When a repayment is made
b) When a dispute is raised
1. CIBIL Credit Score Updation when a Repayment is Made
However, the CIBIL credit score doesn’t get updated the moment you make a repayment. Normally, credit bureaus update the report once in a month. You will need to wait and track your CIBIL report to check the same. CIBIL credit scores aren’t updated instantaneously.
When you make a payment against your credit card or debt, the lender sends this information to the credit agency. Your CIBIL credit score may also take a bit longer to update. It is based on your other financial activities as to when the score will update.
2. CIBIL Credit Score Updation when a Dispute is Raised (H3 Tag)
If you have raised a dispute with CIBIL due to some errors on your report, then you may have to wait for 90 days (3 months) for the dispute resolution, post which, your CIBIL credit score will update.
What to do if the CIBIL Credit Score isn’t Getting Updated?
There may be an unusual situation when your CIBIL credit score is not getting updated. Credit score being the major indicator of your financial health, you need to get it updated regularly. In case, your CIBIL credit score is not at all getting updated, you may follow the below two (2) steps:
- You must first get in touch with your lenders or banks to see if they have provided CIBIL with the most recent information on your repayment. Your most recent CIBIL credit score must reflect this if there is no delay at their end.
- Don't forget to follow up with them to see if they have reported the data change after providing proof of dispute resolution in your favour, which you would have received.
You should regularly review your CIBIL credit report as it helps you stay on track to build a good score. Review your credit report to check for errors and raise a dispute if you find anything suspicious in it and get it corrected as soon as possible.
FAQs related to CIBIL Credit Score Updation
Can CIBIL update any information in the CIBIL Report or make changes to the data?
Your CIBIL credit report cannot be changed directly by CIBIL. Your CIBIL credit score cannot be updated until the modification has been approved and supplied by the relevant Credit Institution.
My accounts have been closed or paid off, yet they are still included on my CIBIL credit report. How can my CIBIL report be updated?
According to the Credit Information Companies (Regulation) Act of 2005, CIBIL is prohibited from changing any database data without the consent of the pertinent Credit Institution. Every 30-45 days, credit institutions provide data to CIBIL, and if you check your CIBIL credit score and report within 45 days of closing or paying off your accounts, CIBIL records might not be updated.
What happens after I raise a dispute with CIBIL? When will the CIBIL credit score update?
When you submit a dispute, CIBIL will internally investigate it before sending it to the relevant credit institution. When the credit institution responds to the dispute request, CIBIL updates the changes immediately (if appropriate) and sends you an email to let you know the progress.
Why doesn't CIBIL contact the consumer to confirm the information before updating the report?
The data on your CIBIL credit report is what credit institutions have reported to CIBIL. The onus is on the financial institutions to accurately submit the facts to CIBIL. It is the duty of CIBIL to accurately update and compile this data. You can start a dispute resolution process with if you discover any data inaccuracies in your CIBIL credit report, and it will be verified. Any modifications must be approved by the relevant financial institution before they can be recorded in CIBIL and updated in your CIBIL credit report.
More than two months have passed since my CIBIL credit report was last updated. What should I do?
There may be two causes due to which your CIBIL credit report isn’t updated:
- The credit institution did not send CIBIL your most recent data.
- On your account, there is an ongoing dispute.
You can ask your credit institution to get your CIBIL credit report updated by getting in touch with them directly.