Prospective borrowers may avail of loans to meet their financial requirements. Therefore, it is important that borrowers maintain a good CIBIL score The CIBIL score is a three-digit number between 300 and 900 that reflects a borrower’s creditworthiness and repayment capacity. Lenders consider anything above 750 a very good CIBIL score and borrowers who have such a CIBIL score may get offered loans on beneficial loan terms and conditions. On the other hand, instances of loan default and loan settlement are seen as a serious aberration of trust by lenders and credit rating agencies. Such cases, therefore, harm a borrower’s CIBIL score and hamper their ability to avail of a loan in future. This article focuses on loan settlements, what is ‘Written Off’ in CIBIL, how this status affects a borrower’s CIBIL report, and how can one remove the ‘Written Off’ status from CIBIL.
What is the Meaning of ‘Written Off' Status in CIBIL?
The ‘Written Off’ status visible in the CIBIL report signifies that the borrower has not been able to make payments against their outstanding loan amount for more than 3 months or 180 days. This status may have implications on the borrower’s overall credit score. Since credit score is a pivotal factor in determining the creditworthiness of a borrower, a lower credit score due to the ‘Written Off’ status in the CIBIL report may affect their eligibility for loans in future.
How to Remove the ‘Written Off’ Status from a CIBIL Report?
Here are the steps to remove the ‘Written Off’ status from your CIBIL report:
Step 1: Request your CIBIL report
First and foremost, request a copy of your CIBIL report. You can obtain the same from the CIBIL website. Then, review this report carefully and check if the 'Written Off' status is properly reflected.
Step 2: Validate “Written Off” status
Once you find out a ‘Written Off’ status in your CIBIL report, assess if the status is incorrect and if you have sufficient grounds for raising a grievance.
Step 3: Inform the concerned lender
Contact your lender, explain your grievance and request them to rectify the status. You will have to provide some evidence supporting the incorrectness.
Step 4: Settle outstanding dues
If you have any outstanding dues with the lender, settle them in full or settle a mutually agreed-upon amount. Once the payment is completed, ask them to update the same on your CIBIL report.
Step 5: Request for a No-Due Certificate
Once you have cleared all your outstanding dues, you can request your lender for a No Due Certificate, which acts as proof that you do not have any outstanding debt.
Step 6: File a grievance with CIBIL
If the lender seems uncooperative and your ‘Written Off’ status is not removed, you can file a grievance with CIBIL to resolve the dispute. Visit CIBIL’s website and provide the details and required documents to complete the process.
Step 7: Follow up
Stay in touch with the raised issue and check the status of your grievance. It may take several days but it will get resolved, and the ‘Written Off’ status will be removed from your credit report.
‘Written Off’ Status in CIBIL: FAQs
You can clear the ‘Written Off’ status from your CIBIL report by following the steps given below:
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Obtain a copy of your CIBIL report and carefully examine it to see if the 'Written Off' status is correctly reflected.
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Evaluate whether the 'Written Off' status is accurate and if you have sufficient grounds to raise a grievance.
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Get in touch with your lender, clarify your grievance, and request them to make the necessary corrections. You will need to provide evidence to back up your claim.
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If you have any outstanding debts with the lender, clear them completely or agree on a mutually acceptable amount. Once you've made the payment, ask them to update your CIBIL report accordingly.
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Once all your outstanding debts have been cleared, request a No Due Certificate from your lender as verification that you have no unpaid debts.
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If the lender is unresponsive and refuses to remove the 'Written Off' status, you can file a grievance with CIBIL to resolve the issue. Visit the CIBIL website and provide all necessary information and documents to begin the process.
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Stay up to date on the progress of your grievance and check its status regularly. It may take some time, but the issue will be resolved, and the 'Written Off' status will be removed from your credit report.
A ‘Written Off’ status on your credit report may affect your chances of availing loans in future. This status shows the borrower was not able to make payments against their outstanding loan amount for more than 3 months, which may lower their credit score.
