The Reserve Bank of India (RBI) has announced significant updates to the credit scoring system in 2025, making it more transparent, consumer-friendly, and aligned with modern financial behavior. These changes are expected to impact how your CIBIL score is calculated and used by banks, NBFCs, and fintech lenders.
If you’re planning to apply for a loan or credit card, or just want to maintain a good financial profile, it’s essential to understand what’s new.
🔔 What Has Changed in 2025?
Here are the key updates to credit score rules introduced or enforced by the RBI and credit bureaus like CIBIL (TransUnion), Experian, Equifax, and CRIF High Mark:
✅ 1. Real-Time Credit Score Updates
Old Rule: Credit scores used to be updated monthly based on lender data.
New Rule (2025): CIBIL and other bureaus will now update scores in near real-time (within 24-48 hours) as lenders report new activity.
🔹 Benefits:
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Faster improvement in scores after repayments.
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Immediate reflection of loan closures or credit card payments.
✅ 2. Free Annual Credit Report – Now Twice a Year
Old Rule: One free credit report per year from each bureau.
New Rule: Consumers are now entitled to two free credit reports per year from each credit bureau.
🔹 Benefits:
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Better credit monitoring.
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Easier dispute resolution if errors are spotted.
✅ 3. Buy Now, Pay Later (BNPL) & UPI Credit – Now Counted
Old Rule: BNPL and UPI-based credit lines were inconsistently reported.
New Rule: RBI has mandated all BNPL and UPI-linked credit usage (e.g., LazyPay, Simpl, Paytm Postpaid, HDFC UPI RuPay Credit Cards) to be reported to credit bureaus.
🔹 Impact:
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Your CIBIL score will now reflect BNPL activity.
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Delays in BNPL repayments can hurt your score.
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Good repayment behavior can boost your credit profile.
✅ 4. Weightage of Secured vs Unsecured Loans Updated
RBI has advised bureaus to revise scoring algorithms to reduce over-reliance on unsecured loans.
🔹 New Weightage (approximate):
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Secured Loans (home, auto): More positively weighted.
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Unsecured Loans (personal, BNPL): Carefully monitored for risk.
This will encourage healthier borrowing patterns and reward users who responsibly manage secured loans.
✅ 5. Credit Disputes Resolution Timeline Cut to 7 Days
Old Rule: Disputes could take 30+ days to resolve.
New Rule: RBI now mandates that all credit bureaus must resolve disputes within 7 working days and allow online tracking of complaints.
🔹 Benefit:
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Faster correction of errors.
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More transparency and customer support.
✅ 6. CIBIL Score Will Now Include Credit Utilization Trends
Bureaus will now track how consistently you use your credit limit over time.
🔹 Good Behavior:
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Using less than 30% of your credit limit regularly.
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Paying EMIs before due dates.
🔹 Bad Behavior:
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Frequently maxing out cards.
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Only making minimum due payments.
This behavioral trend will be factored into your credit score more heavily than before.
📊 Impact on You – What Should You Do?
| Action Item | Impact on Credit Score |
|---|---|
| Paying BNPL dues on time | 👍 Positive |
| Frequently using >50% of credit limit | 👎 Negative |
| Closing old loans responsibly | 👍 Positive |
| Ignoring dispute errors | 👎 Negative |
| Secured loan repayment on time | 👍 Strong Positive |
📌 CIBIL Score Range (2025)
| Score Range | Rating | What It Means |
|---|---|---|
| 750 – 900 | Excellent | Easy loan approvals, low interest |
| 700 – 749 | Good | Eligible for most credit products |
| 650 – 699 | Average | May face higher interest rates |
| 600 – 649 | Below Average | Limited options |
| Below 600 | Poor | Likely to be rejected for credit |
💬 RBI Governor’s Statement (2025):
“With increased digitization, credit behavior is more dynamic than ever. The updated credit scoring framework will ensure fairness, accuracy, and financial inclusion for all borrowers.”
🏁 Final Thoughts
The RBI’s 2025 reforms to credit scoring and reporting are a game-changer for Indian borrowers. The focus is clearly on real-time transparency, digital behavior, and responsible usage. Whether you’re a salaried employee, business owner, or student using BNPL apps, these changes will directly impact your creditworthiness.
📌 Pro Tips to Boost Your Credit Score in 2025:
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Always pay BNPL and UPI-linked credit on time.
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Keep credit card utilization under 30%.
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Don’t close old credit accounts without reason.
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Check your credit report every 6 months for errors.
