In today’s digital and credit-driven world, your CIBIL Score is your financial reputation. Whether you want a home loan, personal loan, or a credit card, your CIBIL score is the first thing lenders look at. That’s why many people frequently check their scores—but the big question is: does checking your score repeatedly hurt it?
The Reserve Bank of India (RBI) recently brought new updates related to credit score tracking. Let's explore what the CIBIL score is, how it works, what RBI’s new rule says about checking it often, and how you can keep your score healthy.
🔢 What is a CIBIL Score?
Your CIBIL Score is a three-digit number that represents your creditworthiness and past loan repayment history. It typically ranges from 300 to 900. The higher your score, the better your chances of getting loans or credit cards.
| Score Range | Meaning |
|---|---|
| 300-550 | Poor Credit Score |
| 550-650 | Average Credit Score |
| 650-750 | Good Credit Score |
| 750+ | Excellent Credit Score |
📅 How Often Will Your CIBIL Score Be Updated Now?
Earlier Rule:
Credit scores used to be updated once a month.
New Rule (Effective from January 1, 2025):
As per RBI, now credit institutions must update your CIBIL score twice a month—once on the 15th and again at the end of the month.
✅ Benefit to You:
If you repay a loan or credit card bill recently, it will reflect in your score faster, making your financial profile more dynamic and timely.
❓ Does Frequently Checking Your CIBIL Score Lower It?
This is a common doubt among people. Here's the simple answer:
🔸 Soft Inquiry vs Hard Inquiry
| Type of Inquiry | Who Initiates It? | Does It Affect Your Score? |
|---|---|---|
| Soft Inquiry | You, when checking your own score | ❌ No impact |
| Hard Inquiry | Bank or financial institution | ✅ Yes, it may reduce score |
👉 So, if you check your score yourself through the official CIBIL website or RBI-authorized platforms, it’s a soft inquiry and won’t impact your score at all.
But if banks or lenders pull your report multiple times because you're applying for multiple loans or credit cards, it leads to hard inquiries, which can lower your score.
🔄 What Is RBI's New Rule on Hard Inquiries?
RBI's new rule (effective from January 1, 2025) focuses on hard inquiries.
Now, if a lender checks your credit report multiple times (for example, you apply for loans at different banks), all those checks will be treated as hard inquiries, and this can negatively affect your score.
✅ Purpose of This Rule:
To reduce careless or excessive loan/credit applications and promote responsible financial behavior.
📉 What Causes a Drop in CIBIL Score?
Several factors can hurt your score. It’s not just missing loan payments.
Common Reasons for Score Drop:
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Late or missed loan/credit card payments
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High credit utilization ratio (e.g., using 80% of your credit card limit)
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Applying for too many loans or credit cards in a short time
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Loan settlement instead of full repayment
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Being a guarantor for someone who defaults
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Not reviewing your credit report for errors or frauds
✅ How to Improve or Maintain a Healthy CIBIL Score
Here are practical ways to improve or maintain your credit score:
1. Pay EMIs and credit card bills on time
Use auto-debit to avoid late payments.
2. Keep credit utilization low (under 30%)
For example, if your credit limit is ₹1 lakh, don’t use more than ₹30,000 regularly.
3. Avoid frequent loan/credit card applications
Each application triggers a hard inquiry that can bring your score down.
4. Clear past dues or defaults
Settle any outstanding amounts and obtain a ‘No Dues Certificate’ from your bank.
5. Regularly monitor your CIBIL score
But only through official sources (like CIBIL’s own website or RBI-approved platforms).
6. Avoid loan settlement options
They hurt your score and make you look risky to lenders.
🧠 Is It Safe to Check Your Score Frequently?
✅ Yes, if you are checking it:
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Checking your own score doesn’t hurt it.
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You can check it monthly or even twice a month to monitor your progress.
❌ No, if banks or lenders are checking it often:
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Repeated hard inquiries due to multiple applications can reduce your score.
📌 Important Points You Should Know
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Every Indian citizen can check their CIBIL score once a year for free.
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Many third-party apps offer score tracking—but stick to official platforms for accuracy.
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Employers, landlords, and insurers are increasingly checking credit scores too—not just lenders.
🔍 RBI’s New Rule – Summary at a Glance
| Area | Earlier | New Rule (from Jan 2025) |
|---|---|---|
| Score Update | Once a month | Twice a month (15th & end) |
| Checking Impact | Unclear | Now clearly defined |
| Hard Inquiry | No restrictions | Now regulated more strictly |
📣 Final Thoughts
The myth that checking your own CIBIL score reduces it is false—thanks to RBI’s clarity, now people can safely monitor their credit health without worry.
But, it is dangerous to frequently apply for loans or credit cards, as repeated hard inquiries can damage your score, making it harder to get approved in the future.
The RBI’s new rules encourage consumers to be disciplined, aware, and proactive in managing their credit. With the right habits, you can maintain a high score, unlock better loan offers, and enjoy low interest rates.
📝 Pro Tips for Credit Wellness:
✔️ Monitor your score monthly
✔️ Never miss EMI payments
✔️ Keep credit card usage under 30%
✔️ Use trusted sources like CIBIL’s official website
✔️ Avoid random loan applications
✔️ Clear off old dues properly
🔔 Want to check your current score?
Visit the official CIBIL website and get a free credit report once a year.
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