There are various terms and components present in a CIBIL report and it is important to understand each one of them to accurately read it. One such term present on the CIBIL report is ‘Written-Off’ and it negatively affects your CIBIL score. Read on to know what it means and how it can be cleared off.
What Does ‘Written-off’ on CIBIL Report Mean?
If you had taken a loan and were unable to pay it, and the lender had to ‘write-off’ the borrowed money, then this incident would show as ‘Written-off’ on your CIBIL report. This term is bad for your CIBIL score and it indicates that you cannot be trusted with money in future. However, you can get this off your CIBIL report.
How to Remove/Clear Written-off Status on Credit/CIBIL Report
To attain a good credit score, it is crucial to have a clean CIBIL report. That is why clearing ‘Written-off’ status from your CIBIL report is essential. You can follow the tips mentioned below to get rid of the ‘written-off’ status:
- Check for errors on the CIBIL report. Sometimes, ‘written-off’ status may appear on your CIBIL report due to inaccurate information.
- Check if a ‘Closed’ account is marked as ‘Written-off’ on your CIBIL report.
- Contact your lender and clear your past dues. This may help clear ‘Written-off’ status from your CIBIL report.
List of Possible Errors on CIBIL Report:
A CIBIL report may contain one of the below-mentioned errors:
- Incorrect personal details: Wrong personal details are one of the common errors present in the CIBIL report. Do check your personal details mentioned in your CIBIL report.
- Wrong balance details: There are high chances that outstanding balance is not updated on your CIBIL report. Do check this value when reading your CIBIL report.
- Duplicate accounts: This is one common error present on your CIBIL report. You may have multiple accounts in your name, and it is important that you inform the CIBIL authorities about it. This would ensure that there are no duplicate accounts, and it won’t bring down your CIBIL score.
- Delay in updating balance: You may have cleared your dues, but it may not be updated on your CIBIL report. Check the balance when reading CIBIL report.
How Can I Raise a Complaint with CIBIL?
You can raise a complaint with CIBIL by following the steps mentioned below:
- Visit CIBIL’s official website and make an account. Sign in.
- Choose a type of dispute and select ‘Dispute Centre’.
- Select ‘Dispute an item’ and enter all the details in dispute form.
- Select the relevant section and choose the type of dispute.
- Press ‘Submit’.
Once you have completed the process, your request will be verified by TransUnion and its status will be updated in a month’s time.
FAQs on Written Off Meaning and Status
- What do you mean by ‘Debt Settlement’?
- Can I clear ‘Settled’ status from my CIBIL report?
- Will a ‘Debt Settlement’ status affect my CIBIL score negatively?
- What do you mean by non-repayment period?
- Is it possible to create a good credit repayment history?
- What is the credit utilisation ratio?
- How much outstanding amount will I have to pay post loan settlement?
- Can I improve my CIBIL score after loan settlement?
In case the borrower is not able to repay the debt, the lender may offer some concession to the borrower in the debt amount. Once the borrower pays the debt amount post concession, the loan is marked as ‘settled’. This process is called ‘Debt Settlement’.
Yes, you can clear off ‘Settled’ status from your CIBIL report. To do so, you need to pay the entire debt amount and get a ‘No Objection Certificate’ from the lender.
Yes, a ‘Debt Settlement’ status will affect your CIBIL score negatively.
The period during which you are not required to make any payment is called a non-repayment period. You need to check your non-repayment period post you and lender have agreed for a loan settlement.
Yes, you can create a good credit repayment history. The easiest way to build a good credit history is by paying your credit card bills and EMIs on time.
The credit utilisation ratio is the percentage of credit limit used against the total credit limit granted to you.
Once the non-repayment period is over, you are required to pau a certain percentage of the balance debt as a single amount to settle the loan. This amount depends on your lender and can be negotiated.
Yes, you can improve your CIBIL score post loan settlement by clearing off dues on time, making fewer loan applications, managing a good credit mix, etc.