Monitor Your Credit Score After Closing an Education Loan

Monitoring your credit score after closing an education loan helps you verify that the loan information reported on your credit profile is accurate. The closed loan can remain part of your credit history, while its account status should reflect the reported closure. Reviewing your credit report after closure lets you check whether the outstanding balance and any overdue amount are reported correctly and whether recent payments are reflected. It also helps you identify unfamiliar credit accounts or enquiries and raise a dispute if you find inaccurate information. A change in your credit score after loan closure does not necessarily indicate an error in reporting. Your credit score is based on multiple factors, so reviewing the underlying credit report can help you understand what may have contributed to the change and identify any information that needs correction.

How does closing an education loan affect your CIBIL Score?

Closing an education loan may affect your CIBIL Score because the loan forms part of your overall credit history. The impact varies between individuals, as your score depends on factors such as repayment history and information reported across your credit accounts. Closing the loan does not automatically mean that your CIBIL Score will increase or decrease.

The effect of loan closure should be assessed along with the information recorded in your credit report. Reviewing the account status, repayment history, and outstanding balance can help you identify information that may need verification or correction.

After closing your education loan, check your CIBIL Score and credit report to confirm the account details are reported accurately. You can verify the loan closure status through the Bajaj Finance App or customer portal, then review your CIBIL report for the latest account information.

Through the Bajaj Finance App:

1. Sign in using your registered mobile number and OTP.
2. Go to My Relations or the relevant loan section.
3. Select your closed education loan.
4. Review the account status and available loan details.
5. Check that the account reflects Closed once the closure update is processed.

Through the Bajaj Finance customer portal:

1. Sign in using your registered credentials.
2. Navigate to the relevant loan account or loan summary.
3. Review the closure status and account details.
4. Download or save the closure confirmation or Statement of Account for your records.

Once the loan closure is confirmed, continue monitoring your credit report for any discrepancies in the account status, outstanding balance, or repayment history. If you find incorrect information, compare it with your loan records and raise a request with the concerned lender or through the authorised CIBIL dispute process.

How to maintain your credit profile after loan closure

Maintaining an accurate credit profile after education loan closure requires continued attention to your existing credit accounts and reported information. Timely repayments, regular credit report reviews, and keeping closure records can help you identify and address discrepancies promptly.

Use the following practices to keep your credit information accurate:

• Pay existing EMIs and credit card dues by their due dates.
• Review your credit report periodically for incorrect information.
• Avoid applying for multiple credit facilities within a short period unless required.
• Keep records of loan closure and payment confirmations.
• Check unfamiliar credit accounts or enquiries promptly.
• Raise disputes when information reported by a credit institution appears incorrect.
• Review your credit report before applying for significant new credit.

Closing an education loan does not remove the account from your credit history when it is reported by the lender. Continue reviewing the information associated with the closed account and your other credit facilities to keep your credit profile accurate and identify any information that may require correction.