If you've recently paid off a loan or cleared your credit card balance, you no longer have to wait months for your credit score to improve. New regulations from the Reserve Bank of India (RBI) have accelerated the credit score update process, and it's set to become even faster in 2026. This will directly benefit those looking to buy their first home, take out a new loan, or improve their damaged credit score.

What has changed in credit score updates?
Since January 2025, the RBI has instructed banks and NBFCs (Non-Banking Financial Companies) to send data to credit bureaus at least twice a month. Previously, this update took 30 to 45 days. Now, the impact of loan pre-payments or closures is visible in approximately two weeks.

Weekly updates proposed from 2026
The RBI has proposed updating credit scores every 7 days from 2026. Under this proposal, credit data will be refreshed on the 7th, 14th, 21st, 28th, and the last day of the month. This means that if you close a credit card, pay your EMIs on time, or correct any errors, the impact will be reflected in your credit report within a few days.

People often think that credit scores are determined only once a month, but that's not the case. Whenever your credit data is updated or a bank checks your report, the score is calculated based on the information available at that time. Payment delays, new loans, or timely EMI payments can all immediately affect your credit score.

Increased security with SMS and email alerts
Now, whenever a bank or financial organization views your credit report, you will receive an SMS or email alert. This will allow you to be immediately informed if someone attempts to fraudulently obtain a loan or card in your name.

Warning required before default
According to RBI regulations, banks must inform the customer before declaring an account as defaulted. This allows the customer to make timely payments and prevents their credit score from being unnecessarily damaged. Quick Resolution of Complaints
If there is an error in the credit report and it is not resolved within 30 days, the customer can receive compensation of ₹100 per day. This will put pressure on banks and credit bureaus to make corrections promptly.

What benefits will customers receive?
Credit scores of timely payers will improve faster.
Loan and credit card approvals will be quicker.
Lower interest rates may be available with a better credit score.
The recovery time for those improving their credit will decrease.
This means that those who have defaulted on payments in the past and are now improving their habits will take less time to build a good credit score again. These changes by the RBI are making the credit system more transparent, faster, and customer-friendly. Now, a credit score is not just a number, but a measure that reflects your current financial situation.

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