What is a ‘Written Off’ Status in CIBIL & How to Remove It?

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.