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How Often Does Your CIBIL Score Change?

How Often Does Your CIBIL Score Change?
Jay Kaul
Written by Jay Kaul

Change In Your CIBIL Score Can Be Frequent

1 Day Late Payment Effect On CIBILIt goes without saying that your CIBIL score not only indicates your creditworthiness in the market but is also the primary gauge of your status and reputation as a debtor. Thus, getting your personal credit report upgraded regularly assumes tremendous importance because a dipped or even weak credit score indicates a negative repayment attitude. Moreover, incorrect data received by the credit bureau drastically pulls down a debtor’s credit score, which again is most likely to prove detrimental in the future.

Thus maintaining a high score not only assumes immense significance but ensuring error-free data flow also becomes equally important. It may be monitored if such reports are regularly reviewed on a quarterly, half-yearly or annual basis.

How does Your Credit Score Get Updated?

When you put in a request for a correction to be made to your personal credit report only to find that nothing has been done, don’t panic. It is just because any informational changes in a credit report only happen when the lender, which may either be a bank or a financial institution, informs the concerned credit bureau. They subsequently provide the updated information for necessary uploading.

Time Required for CIBIL Score Update 

•    Any credit bureau does not have the power to change account information until empowered by the concerned lender. The bank typically sends relevant facts to the concerned agency once every 30 days if not otherwise stipulated or required.

•    Usually, the smaller lenders do this quarterly.

•    On the flip side, if there’s a dispute resolved to your credit, it may need up to 90 days for all revised and corrected data to show on your credit report.

It also happens that dates differ according to the information a lender transmits to the bureau. Thus even if a borrower pays off his entire dues today, the data is most unlikely to be projected immediately.

Hence, it’s advisable to check the report after a gap of 45 days at most which is sufficient time for information updating.

How to Quicken the Process of Information Update?

The inquiry type on a particular account is also responsible for differences in time periods when it comes to data updating. Hits or hard enquires, for instance, get updated instantly and get reflected on the credit report.

In case the data remains incorrect, or the bureau does not upgrade the information, you have to contact the lender immediately to check whether it has furnished the bureau with the relevant information.

In cases of a resolution of a dispute, submit appropriate proof of it and keep following up till the data is changed. Also, maintain simultaneous contact with the bureau in question and get them to upgrade your report.

In conclusion, it may be said that your CIBIL score changes according to the regularity of your repayments and the efficiency of your lender in transmitting that relevant information to the concerned credit bureau timely and correctly. It is, however, due to standard errors of omission and commission that discrepancies happen and this, in turn, affects the net results.

At a Glance:

•    Banks and lenders send their reports to credit bureaus on a monthly basis

•    Small organizations may report once in 3 months

•    It may take up to 90 days to reflect a data change

•    Recommended time to check for any requested update is 45 days after the date of request

About the author

Jay Kaul

Jay Kaul

Jay is a financial and credit expert and freelance contributor to CreditSmart. He's always keeping his eyes open for the latest credit card trends in India and provides a sharp insight on new entries into the market.

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