Understanding CIBIL Score Update Timeline After Closing a Credit Card
When it comes to managing your financial health, understanding how and when your CIBIL score updates is essential. Specifically, knowing how long it takes for your CIBIL score to reflect the closure of a credit card can be crucial for maintaining a healthy credit profile. In this article, we will explore the timeline for CIBIL score updates following the closure of a credit card with on-time payments, and how the credit bureaus like CIBIL operate in updating such information.
Credit Bureaus Update Timeline
Financial Institutions (FIs) submit your credit product details every 30 days to the bureau. When you close a credit card with on-time payments, the bureau score will refresh as soon as your account status is changed to closed. However, there is a key timing consideration that you should be aware of.
Typically, it is recommended to check your bureau details between the 1st and 5th of the next month. Most FIs submit their details in or around the last day of the month, and therefore, it might take up to a month for the changes to reflect. For instance, if you have closed your credit card in November, you might see the account status as closed at any point between early January and mid-January.
Timeline of Account Closure
Once your credit card is closed, it can take between 1 to 2 months, or up to 3 months at the maximum, for CIBIL to reflect the account closure in your report. A user who had closed their credit card in November noticed that the account was not active and showing closed when they checked in February. This highlights the fact that the process can vary slightly depending on the financial institution's internal practices.
Update Timeline and Payment Records
Credit bureaus like CIBIL typically take around 30-45 days to update your payment records. After you make a payment, the financial institutions send a report to CIBIL every month, or once every 45 days, depending on their internal practices. The number of days can vary based on the specific practices of each FI. It is important to note that no credit bureau has the authority to make direct changes to your credit report. They can only update the report after receiving the necessary approvals from the financial institutions.
Even after a payment, there might be a small delay in the update process. This is why, if you clear your dues, it can take approximately 30 days for the update to reflect in your CIBIL score. To minimize any risks, make sure that there are no late payments that might affect your CIBIL score during this period.
Conclusion
Understanding the timeline for CIBIL score updates after closing a credit card is crucial for maintaining a healthy credit profile. By following the recommended practices and staying informed about the update processes, you can ensure that your credit score remains accurate and up-to-date. Keep in mind that the timeline can slightly vary based on the specific financial institution and their internal practices.