When Does Credit Score Get Updated? 

You’ve probably noticed your credit score doesn’t get updated very quickly, even when you pay off your dues on time. That’s completely normal. 

Credit scores take a little while to update because lenders, credit bureaus, and banks all work in cycles. If you’ve just repaid a business loan or cleared a credit card bill, it can take a few weeks before the changes to reflect in your credit score. 

Here’s a clear breakdown of how it works and what you can do to keep your credit report healthy. 

What actually happens behind the scenes 

Your credit score is calculated by agencies like CRIF High Mark, CIBIL, Experian India, and Equifax.

Every month, banks and NBFCs send your updated repayment data to these bureaus. This includes: 

• EMIs you paid or missed 
• Loans you opened or closed 
• Credit card balances 
• Any overdue payments 

Once the bureaus receive this information, they update your report and recalculate your score. 

So even if you cleared out a big loan last week, your lender might not send that information to the bureau immediately, which means your updated score could appear after 30–45 days. 

How often your credit score updates 

In most cases, your credit score updates once a month, after your lender reports new data. 

According to India Today, credit bureaus generally refresh credit records every 30–45 days, depending on when lenders share the data. 

Recently, the Reserve Bank of India has encouraged banks to move towards faster, even bi-weekly, reporting to improve transparency. But as of now, most MSME owners can expect their score to update roughly once a month. 

What changes when credit score updates 

Each time the bureaus receive new data, they re-check your: 

• Payment history – whether you’ve paid EMIs and bills on time 
• Credit utilisation ratio – how much of your available credit you’re using 
• Credit mix – balance between secured (loans) and unsecured (cards) credit 
• New applications – number of recent loan or credit enquiries 
• Account closures – loans or cards you’ve fully paid off 

Even one of these factors can change your score up or down. 

For example, if you reduce your credit card usage from 80% to 30% of your limit, your next update could show a noticeable improvement. 

Why the timing matters for you 

If you’re planning to apply for a business loan, the timing of your score update can make a real difference. 

Let’s say you’ve just cleared a small loan and you’re waiting for your score to change. If you apply for another loan before the bureau updates your data, lenders may still see your old score and offer you a smaller amount or a higher rate. 

Waiting a few weeks can improve your chances of approval and help you get better terms. 

As The Economic Times explains, it usually takes one or two reporting cycles for any change in credit behavior to reflect in your score. 

How you can make sure your updates reflect correctly 

Here are a few practical steps that help: 

1. Check your report monthly: You can get a free report from TallyCapital. Look for the “Last Updated” date to see when your lender last reported data. 
2. Keep proof of payments: Always save loan closure letters, NOCs, and bank statements. They’ll help if you need to raise a correction. 
3. Dispute errors quickly: If your score hasn’t updated after 45–60 days, file a dispute directly on the credit bureau’s website. They’ll coordinate with your lender to fix it. 
4. Avoid multiple loan applications: Every hard inquiry slightly reduces your score. 
5. Keep utilisation low: Try to use less than 30% of your credit limit across cards and overdraft accounts. 

The bottom line 

Your credit score doesn’t change every week and that’s okay. Updates usually happen once a month, based on when your lender reports new data. 

If you’ve recently made payments or closed a loan, give it a few weeks before checking your score again. Consistency, not quick fixes, is what improves it over time. 

And if you want to check your free credit score or explore business loans that match your financial health, you can do it directly through TallyCapital. 

We help MSMEs like yours get the right financing backed by transparent processes and zero guesswork about your credit readiness.