CIBIL Score: Does checking CIBIL score decrease by doing it repeatedly? Loan takers should know this important thing..

Cibil Score: CIBIL score is a three-digit number between 300 and 900. It reflects your credit history and creditworthiness. A score of 750 or above is considered good, which indicates to lenders that you are reliable in repaying the loan. A good CIBIL score is important in getting loans and credit cards.

Cibil Score will be available in 15 days-

According to the new rules, from January 1, 2025, your CIBIL score will be updated every 15 days. The Reserve Bank of India (RBI) has now directed banks and financial institutions to update credit scores more quickly. This means that your CIBIL score will be updated on the 15th of every month and at the end of the month, providing a more accurate and latest statement of your financial position.

What happens by checking Cibil's score frequently?

Generally, when you check your Cibil score yourself, it is called a "soft inquiry". Soft inquiry does not affect your score. But when a bank or financial institution checks your credit score, it is called a "hard inquiry". A hard inquiry can reduce your Cibil score by a few points.

RBI's new rule-

RBI implemented some new rules last year, under which some changes have been made in the process of hard inquiry. Now if a bank or financial institution repeatedly checks your credit history, it can affect your score more than before. This rule is especially important for those who repeatedly apply for a loan or credit card.

These are also the reasons for falling credit score-

A credit score is determined between 300 to 900. Generally, a credit score of more than 750 is considered good. The main reason for a drop in the credit score is of course not repaying the loan on time, but apart from this, many other factors affect your score.

What other reasons will cause the CIBIL score to drop?

Credit Utilization Ratio getting messed up. Applying for a loan multiple times in a short period. Loan settlement. Becoming a loan guarantor for a person who does not repay the loan on time. Not making credit card payments on time, etc.

How to avoid a drop in the Cibil score?

Do not apply for a loan or credit card repeatedly: There is a hard inquiry on your score on every application.

How to avoid a drop in the Cibil score?

Monitor your Cibil score: For this, use only the official website of Cibil or an institution recognized by the Reserve Bank of India.

How to avoid decreasing the Cibil score?

Improve your credit history: You can improve your Cibil score by paying loan and credit card bills on time.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.