CIBIL Score: Read these 5 RBI rules related to CIBIL score before taking a loan..

RBI was receiving numerous complaints regarding credit scores, where people were unaware of when their scores were checked or why they had deteriorated. Taking these complaints seriously, RBI has enacted strict regulations to make the entire system fairer and transparent. You will directly benefit from these new regulations, as now every detail related to CIBIL will be at your fingertips. This change will ensure that credit information companies and banks are not able to act arbitrarily, and you have complete control over your credit health.

If someone checks your CIBIL, you'll receive an SMS!
Previously, any bank or finance company could check your CIBIL score without your permission or knowledge. Now that RBI has stopped this, whenever someone checks your credit report, you will receive an immediate SMS or email alert. This will protect you from any unauthorized checks and let you know who is monitoring your credit profile. This will allow you to better monitor your credit history and take immediate action on any discrepancies.

Why was your request rejected? Now you'll even get a reason!
Previously, when your loan application or other credit request was rejected, you were often not given a clear reason. Now, banks and finance companies will be required to clearly explain why they rejected your request so you can correct the mistake. This rule will help you understand the weaknesses in your credit profile and know where you need to improve so your request won't be rejected next time.

View your complete credit horoscope once a year for free!
Previously, you had to spend money to view your full credit report, or sometimes you wouldn't get complete information. Now, credit information companies will provide you with a complete and free credit report at least once a year. This is like an annual "free credit health check-up," allowing you to view your entire credit history, ongoing loans, and payments all at once. This will allow you to track your credit health and catch any mistakes early.

You'll receive an alert before you default!
Have you ever been on the verge of defaulting and didn't realize it until the last minute? That won't happen anymore. If you're about to miss a loan installment, the lending institution will notify you in advance via SMS/email. Furthermore, every bank and lending institution must appoint a "Nodal Officer." This nodal officer will be available to resolve all your credit score-related issues, saving you the hassle.

Resolve Complaints Within 30 Days, Or Lose Your Pocket!
Previously, CIBIL complaints used to linger for months, causing significant inconvenience to customers. Now, credit information companies must resolve your complaint within 30 days, or face a penalty of ₹100 per day. This process gives the bank 21 days, and the credit bureau 9 days. If the bank fails to provide information to the credit bureau within 21 days, the bank will pay a penalty; and if the bureau fails to resolve the complaint within 9 days of receiving the bank's information, it will have to pay a penalty.

Credit Score Rules
These new rules are like a "master key" to your credit score. Understanding them can not only strengthen your financial health but also make the process of obtaining a loan in the future much easier. So, what are you waiting for? Follow these rules and become a smart financier.

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