The CIBIL Score is the most critical parameter indicating credit health in India. It reflects your creditworthiness and helps banks and financial institutions in deciding whether or not you are eligible for a loan. There will be new rules regarding CIBIL score that will come into force from 2025, which bring with them significant changes for borrowers. Such rules are rather crucial for everyone to understand, especially those looking forward to applying for a home loan, personal loan, or credit card.
CIBIL Score New Rules 2025 Important Changes
- Increased importance of Credit Utilization Ratio: According to fresh norms, the importance of the Credit Utilization Ratio has gone up even further. The Credit Utilization Ratio is that ratio of your total available credit limit to the used credit. From 2025, if you utilize over 30% of your stipulated limit on your credit card, it would have an adverse impact on your CIBIL score.
- Impact of small loans: Previously, only huge loans (like housing loans or car loans) would impact the CIBIL score. However, now with the new rules of 2025, even small loans (like personal loans or bike loans) will impact your credit score.
- More stringent evaluation of payment history: It is almost the most important parameter in deciding the CIBIL score; hence, it is the payment history. In 2025, even by one day delay of the payment, the score may drop. Therefore, it has become all the more important to make the payments of all EMIs and bills of the credit card on time.
- Importance of credit mix: More importantly,the credit mix or balance between secured and unsecured loans, have account for the last bit in new rules that would impact the CIBIL score. If you have just one type of loan, it may work against out score.
How To Increase Your CIBIL Score
- Pay all the bills and EMIs on time.
- Do not utilize more than 30% of credit card limits.
- Balance your credit mix.
- Check your CIBIL score regularly and correct mistakes.
New rules for CIBIL score are both challenge and opportunity for the borrowers. Educating themselves on these rules and then taking the right steps can improve one’s chances of getting a loan in future by increasing one’s score.
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