Your CIBIL Score plays a crucial role when applying for a loan or credit card. A good score ensures approval, while a poor one can lead to rejection. But did you know your score could drop even without your fault? The Reserve Bank of India (RBI) has introduced new rules to safeguard borrowers like you.
Why Does Your CIBIL Score Drop?
Most people believe that missing loan or credit card payments is the only reason for a low score. However, several other factors can harm your creditworthiness, such as:
- Errors by banks or NBFCs in reporting data
- Frequent loan applications within a short span
- Unauthorized credit checks by lenders
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Key Highlights of RBI’s New Rules for CIBIL Score Protection
- Mandatory Alert for Credit Score Checks
Now, if a bank, NBFC, or credit bureau checks your CIBIL Score, you’ll receive an SMS or email notification. This ensures transparency and helps you track who accessed your credit report. - Banks Must Explain Loan/Credit Card Rejections
If your loan or credit card application gets rejected, the lender must clearly state the reason. This helps you identify and fix issues before reapplying. - Free Annual Credit Report for All Customers
As per RBI guidelines, every borrower is entitled to a free full credit report once a year. Credit bureaus must provide a direct link on their websites for easy access. - Early Warning Before Default Status
Lenders can no longer declare you a defaulter without notice. If your account is at risk of defaulting, you’ll receive an SMS or email alert, giving you time to rectify the issue and protect your CIBIL Score. - Appointment of Nodal Officers for Grievances
Every bank and NBFC must now appoint a nodal officer to handle credit score-related complaints. This ensures faster resolution and better customer support.