Credit Score Guide #98: How to Rebuild Your CIBIL Score After Loan or Credit Card Default

 

Missed a Loan or Card Payment? Here's Your Step-by-Step Recovery Plan

Defaults don’t have to define you. You can rebuild your score with patience, consistency, and smart steps.

---

📉 Step 1: Settle or Repay Your Dues

Negotiate a full or partial settlement with your lender. If possible, pay the full amount and get a NOC (No Objection Certificate).

---

🧾 Step 2: Request CIBIL Update

Lenders report to CIBIL. After you clear dues, ask for written confirmation of score update or correction.

---

🛠️ Step 3: Start Small

• Get a secured credit card backed by FD
• Take a small consumer durable loan (repay on time)
• Use only 30% of credit limit

---

📅 Step 4: Wait + Track

Improvement takes 3–12 months depending on severity. Monitor via OneScore or CIBIL official site.

---

✅ Conclusion

Default isn’t the end. Rebuilding CIBIL is slow but 100% possible — if you act responsibly and consistently.

---