How Often is CIBIL Score Updated? Or What is CIBIL Score Update Time?

Anil wanted to apply for a home loan from his bank. One of his friends advised him to check his CIBIL Score first before applying for the loan as CIBIL Score was a significant parameter in the loan approval process of the bank. Anil then received his free CIBIL Score and report from CIBIL. His score was just above 600 which was not that good on which he could get home loan at lower interest and could also negotiate on the terms of the loan. He decided to first to improve his CIBIL Score above 750 and then apply for the loan he wanted. He immediately took some necessary steps and made consistent efforts to improve his CIBIL Score. He again obtained his CIBIL Score after 40 days but he didn't find any improvement in his CIBIL Score. He is very worried as to why the improvement has not been reflected in his CIBIL Score?

Here, one must be aware of that any changes to the CIBIL Score and report are made only after the lenders i.e. a bank or financial institution sends data of these changes to the credit bureau i.e. CIBIL with the updated credit related information for upload. CIBIL on its own cannot make any changes to a person's account information unless it has been authorised by the lenders through data sent by them.

Every time you avail a loan, use your credit card or make a payment, these actions are recorded by your lending bank. Lenders submit this information to CIBIL at the end of each billing cycle. This data includes your credit limits, outstanding balances, payment history and any new credit inquiries you may have made.

Usually, lenders provide credit service related information of their customers who have availed any kind of credit from them such as loans or credit cards to the credit bureau every 30 days, unless otherwise required.

Small banks and financial institutions send such data on quarterly basis. In case of dispute resolution in your favour, it can take upto 90 days time to inform the data to the credit bureau i.e. CIBIL. Further, your data from different lenders may get updated with different credit bureaus on a different days of the month.

Once credit bureau i.e. CIBIL receives this information, it processes and updates your credit report and recalculates your CIBIL score. This cycle means that if you have made significant changes in your credit behavior like you paid off a loan or credit card debt, you will be able to see a reflection of these things in your CIBIL score in roughly 30 to 45 days.

There may be some other events which are updated more frequently for example, if you apply for a loan at a bank and the bank checks your CIBIL score (which is considered 'Hard Inquiry'). It is immediately reflected in your CIBIL Score.

It's necessary to understand that your CIBIL score is not updated in real-time. There is always be a time-lag between when you make a credit-related transaction and when it is reported to CIBIL and reflected in your score. Therefore, if you're planning to apply for a loan or a credit card, it's advisable to check your CIBIL score at least a couple of months in advance. This gives you sufficient chance and time to improve your score if your require to do so.

So the answer to 'How Often is CIBIL Score Updated?' is that you should check your CIBIL score and report after 45 days which allows sufficient time to the credit bureau for updating information. CIBIL Score update time would like to be 45 days. However, no one can correctly predict about CIBIL Score update frequency or when CIBIL Score is updated.

If you come to know about your CIBIL Score, you may look for credit improvement, if it is on lower side. Credit improvement is not very difficult, if the effort is consistent and in a right direction over a long period of time. For this purpose, one must take care of the factors that affect your credit score or CIBIL Score.

Remember that a regular monitoring of your CIBIL score is always a good practice to check whether your credit information is accurate and up-to-date. It will help you stay on top of your financial health and creditworthiness.

You may be interested to know more about How to increase your Credit Score? This will help you to increase your credit score.

Step you need to take in case you do not see updated CIBIL Score?

• You first need to contact your lenders and check whether they have furnished the updated information to the CIBIL. In case, there is no delay at their end, it must be reflected in your latest CIBIL score.
• Don't forget to submit proof of dispute resolution in your favour, that you would have received and then follow up with them whether the data changed has been reported by them.