RBI rules made credit score updates faster in 2025: What to expect in 2026

More frequent updation of credit score is good for both the borrower as well as the lender.

Cleared a loan? Under the old rules, you'd wait 45 days to see your credit score improve. But with the Reserve Bank of India (RBI) new guidelines effective from January 2025, your credit update is reflected in just two weeks. That's a significant change for first-time homebuyers or anyone rebuilding their credit - faster updates mean more opportunities.

Let’s look at the key changes that impact your credit score and loan applications.

Bi-weekly credit data updates

Effective from January 1, 2025, the RBI mandated banks and non-banking financial companies (NBFCs) to report credit info to TransUnion CIBIL, Experian, Equifax, and CRIF High Mark at least twice a month. This reduced the reporting lag from the previous 30-45 days.

The availability of accurate credit information at shorter intervals is vital for both lenders and borrowers. “Fresher credit information is better for banks and NBFCs,” said Parijat Garg, a digital lending consultant.

Satish Mehta, Founder of Athena CredXpert (ACX), an LLP specialising in credit counselling, said that this development aligns with international standards of credit reporting, and may potentially lead to real-time data updates.

More frequent updation is good for both the borrower as well as the lender. Borrowers now get to see the change in the status of their loans much sooner, which is very important when you make a prepayment or close your loan. Lenders can assess risk better and contain over-leveraging by borrowers.

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Credit score is dynamic: Understand how it changes

A borrower should be aware that a credit score is not a static number that someone computes every month, six months, or once a year. It is arrived at dynamically — when you make a request for your credit report or for the score, it is computed based on the data available at that point of time.

Your credit score can change based on your credit behaviour vis a vis loans taken, loan repayment, loan defaults, or discrepancies across financial institutions. Any change in any of these may lead to a change in the credit score.

Credit bureaus' real-time alerts

Credit bureaus now send alerts through SMS/email to customers when their credit information report (CIR) is accessed by the financial institutions when they apply for a loan or a credit card. The credit bureau shares the details wherever the mobile number/ email ID of the customers are available. The credit bureaus send the alerts only when the CIR enquiry reflects in the CIR of the customer.

This means if someone is trying to use your credentials to open an account fraudulently, you have that information in real-time and you will able to take corrective action immediately.

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Default notifications to borrowers

Lenders must notify borrowers before marking an account as default to a credit bureau, giving them a chance to rectify the situation. They send SMS/email alerts when reporting default/ days past due (DPD) to credit bureaus, in existing credit facilities, wherever the mobile number/email ID details are available.

Faster dispute resolution

As per the RBIs framework, complainants shall be entitled to a compensation of Rs 100 per calendar day in case their complaint is not resolved within a period of thirty (30) calendar days from the date of initial filing of the complaint with credit institutions.

A complainant may request a credit institution to update the credit information by making an appropriate correction, addition or otherwise, and on such request the credit information shall take steps to update the credit information within thirty (30) days after being requested to do so.

“A financial penalty for every day of delay will keep the clock ticking for credit institutions and Credit information companies (CICs),” said Garg.

Mandatory reasons for rejection

Lenders must give specific reasons for loan rejections, helping borrowers understand and address specific issues.

Complaints against credit bureaus rise steadily

Borrowers in India are increasingly flagging errors on credit reports, leading to a surge in complaints with the financial ombudsman. Data shows issues with credit information companies have risen steadily over three years, likely due to increased consumer awareness and scrutiny. Complaints jumped from over 1,000 in 2022-23 to nearly 4,600 in 2024-25, mostly related to loans and advances.

What’s changing in 2026?

Key changes are proposed to credit bureaus from July 1, 2026. Lenders will submit borrower data to credit bureaus on a weekly basis, i.e. 7th, 14th, 21st, 28th, and last day of every month. The lenders will submit a complete snapshot of all active and closed accounts by the 5th of the following month. These changes aim to improve credit transparency and reduce errors, benefiting both lenders and borrowers.