Credit score rebuilding is the systematic process of improving your damaged credit rating after financial setbacks like loan settlements, defaults, or missed payments. With RBI’s 2025 reforms introducing faster score updates and enhanced transparency, rebuilding your credit has become more achievable and trackable than ever before.Understanding Credit Score Damage After a loan or credit card settlement, your credit score typically drops by 75-100 points. The “settled” status remains on your credit report for 7 years, significantly impacting your ability to secure future loans or credit cards. However, with consistent effort and strategic planning, you can rebuild your creditworthiness effectively. 2025 CIBIL Score Updates: New Opportunities The Reserve Bank of India has introduced significant changes to credit scoring in 2025 that benefit borrowers during the rebuilding process: Bi-Weekly Score Updates: Your CIBIL score now refreshes every 15 days instead of monthly, meaning positive changes reflect faster in your credit profile. Mandatory Disclosure: Lenders must clearly explain if your application was rejected due to credit score issues, providing transparency in the approval process. Human Review Requirement: Banks can no longer automatically reject applications based solely on low scores - a real person must review each case. 30-Day Error Resolution: You now have 30 days to dispute and correct credit report errors before lenders can proceed with applications.