RBI New Rule Credit Score: In today’s world, your credit score is the first thing to be considered while applying for any service like loan, credit card, or EMI (Equated Monthly Installments). This score decides whether the bank can trust you or not? Now the Reserve Bank of India (RBI) has made the rules to credit score more strict and more transparent. Let us understand in detail how our credit score will now be calculated and what small things will now be taken into consideration.

How will credit score be calculated?

According to the new rules made by RBI, your credit score will not only depend on whether you have ever taken a loan or not, but will also depend on whether you are making the payments on time or not. This will depend on how much you are utilizing your credit limit, and how regularly you are paying small loans and your credit card bills. How quickly any late payments are reported will also be a factor.

Do small things matter more now?

Earlier, delays of one or two days or small amounts not being reported on time were often ignored. But now under the new rules, delay in even one EMI payment can reduce your score. Paying only the minimum due amount can have a negative impact on your score, and repeatedly using 70-80 percent of your credit card limit is also risky for your score. Financial discipline under this system is no longer limited to large loans; Now even everyday expenses can make or break your credit profile.

Which services are directly affected by credit score?

The effect of this change by RBI will be visible in many essential services, which include

• Personal Loan and Home Loan: Higher interest rates for those with low credit scores.


• Credit Card Approval: You may get a lower credit limit or your application may be rejected.


• Buy Now, Pay Later (BNPL) Services: Eligibility criteria will be strict.


• Fintech apps and digital lending platforms: Data will be updated more frequently.


• Buying things like mobile phones, laptops and cars on EMI (equated monthly installments) can be more difficult.

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