Here’s a step-by-step guide on how to remove the ‘written off’ status from a CIBIL report
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For a healthy CIBIL score and report, it is crucial to understand all of its associated elements and terms. A CIBIL report contains a range of data, such as:
Credit history
Number of loan accounts
Name of lender/s
Payment history
Upon reading the report thoroughly, you will come across the term ‘Written off’. Knowing how to remove ‘Written off’ from a CIBIL report is crucial to keep your credit account in good standing.
Defaulting on a loan has many repercussions on your credit score. If you are unable to pay the loan for three consecutive months, the lender writes it off. In such cases, your credit report shows a ‘Written-off’ status for that particular loan.
This means that the lender has not been able to recover the loan amount from you. This status reduces your creditworthiness, as it indicates that you may not be a trustworthy borrower. Thus, you may want to get it removed from your credit profile to get access to affordable credit in the future.
This status on your credit report can significantly impact your creditworthiness. Follow these easy steps to remove the ‘Written off’ status from your CIBIL report:
Request a Copy
Request CIBIL to provide you with a copy of your credit report and check whether the ‘Written-off’ status is correct.
Assess Your CIBIL Report
In case of a grievance, assess whether you have sufficient grounds to raise a complaint.
Reach Out to Your Lender
Contact your lender and ask them to rectify the status. You will be required to submit evidence supporting your case, so ensure you have this handy.
Pay Outstanding Dues
In case of any outstanding dues, settle them in full. Ask your lender to share these updates with CIBIL. If you cannot pay the full amount, negotiate with the lender and pay the mutually agreed-upon amount.
Obtain a No-Due Certificate
Upon clearing all outstanding dues, request your lender to provide a No Due Certificate. It acts as proof that you have completely repaid all your dues.
Verify Your CIBIL Report
The next step is to generate a new credit report to check if the lender has reported the payment to CIBIL.
Raise a Complaint to CIBIL
If the lender is non-cooperative or you are unable to see the changes in the report, raise a complaint with CIBIL by visiting the dispute resolution portal. Provide the required details and documents to raise a grievance successfully.
Keep Track of Your Complaint
Ensure to follow up and check the status of your complaint. Within a few days, your grievances are likely to be resolved.
This remark on the credit report indicates that you are a high-risk borrower. Therefore, you may have difficulty getting approval for a loan or credit card.
Even if you get approval, the terms might be unfavourable, such as high interest rates. It may also lower your credit score, affecting your overall credit health.
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FAQs on Written-Off Status on a CIBIL Report
How to remove the ‘Settled’ status from your CIBIL report?
A ‘settled’ status may appear on your report before or after your loan is written off by a financial institution. It means that you have repaid less than what you owe. The only solution to get this status removed is to clear your debt in full.
What is Debt Settlement?
Debt settlement is when the lender and borrower agree to settle the debt at a lower amount. This typically involves the borrower making a partial payment to the lender to clear the debt. Once paid, the lender marks the account as ‘settled’ on the borrower's credit report.
What does ‘closed’ status mean on a CIBIL report?
The term ‘closed’ typically refers to the status of a credit account or loan. It means that the account has been fully paid off. It reflects that there are no outstanding dues or balances associated with it. This is generally a positive status, as it indicates that you have successfully repaid the debt associated with that account.
How to clear a ‘write off’ in the CIBIL report?
If you're wondering how to clear a ‘write off’ in the CIBIL report, the only solution is to clear the debt. After paying the outstanding amount, collect the No Objection Certificate (NOC) from your lender and raise a dispute on the CIBIL website.The credit bureau will then confirm the update with the lending institution. Following that, the status will be ‘closed’ within 30 days.
