Written Off in CIBIL Reports

Understanding what ‘Written Off’ means in CIBIL is crucial. You may have heard this term while reviewing your CIBIL report. Many people get confused and leave the term as-is, unaware of its importance, which can affect their credit score. Hence, Urban Money offers a detailed overview of ‘Written Off’ in CIBIL and how to remove ‘Written Off’ from the CIBIL Report, empowering you to obtain a higher credit score and enrich your borrowing capacity. We further cover how ‘Written Off’ status can affect your credit score, what other common errors can be found in your CIBIL report, and how to raise a complaint in such a situation.

What Does ‘Written Off’ Mean?

‘Written Off’ represents a bad mark on your CIBIL Report. This term appears on your report because the lender ‘wrote off’ or exempted your loan after attempting multiple times to recover it from you. i.e., the lender removes the debt from their financial statements as an asset, essentially accepting the loss. However, the lender informed CIBIL of this incident, stating that they made several attempts to recover the loan amount but were unsuccessful, ultimately causing a significant drop in your credit score. You can remove this status from your report once you settle your dues with the lender. Once you settle your dues, you can request the lender to update your credit status with CIBIL. The lender will do so accordingly.

Steps to Remove ‘Written Off’ Status From Your CIBIL Report

Below are the applicable procedures for removing ‘Written Off’ from CIBIL:

Step 1: Contact your lender to find out the exact amount you owe.

Step 2: Negotiate with the lender on how to repay the amount.

Step 3: Once the loan is settled or cleared, obtain a ‘No Dues Certificate’ from the lender.

Step 4: Request the lender to update the latest loan status with the credit bureau.

Step 5: You can also directly approach CIBIL and raise a dispute to clear the ‘Written off’ status.

Step 6: Submit all necessary documents as proof of your loan clearance.

Step 7: Follow up with CIBIL until your CIBIL report is updated and the ‘Written-off’ status is removed.

How ‘Written Off’ Status Can Affect Your Credit Score

Let’s examine how ‘Written Off’ in CIBIL status can affect your credit score:

• Credit Score Drop: The presence of a ‘Written Off’ remark can cause a substantial decrease in your credit score.
• Difficulty in Obtaining Credit: Future lenders may hesitate to extend credit to individuals with a history of write-offs.
• Higher Interest Rates: If you qualify for a loan or credit card, you may face higher interest rates due to the ‘Written Off’ status since the lender views you as a riskier applicant.

Common Errors Found in CIBIL Reports

The following are some common errors, apart from how to remove ‘Written Off’ from CIBIL, that you might be aware of to keep your CIBIL Report error-free.

• Incorrect Personal Information: Errors in your name, address, age, date of birth, and PAN details can occur.
• Duplicate Accounts: Sometimes, an account may be listed more than once, which can negatively impact your credit score.
• Mismatched Overdue Amount: The reported overdue amount may not match the amount due.
• Incorrect Account Details: This can include wrong loan amounts, payment history errors, or unauthorised accounts.
• Incorrect Days Past Due (DPD): DPD indicates how many days a payment is overdue. An incorrect DPD can suggest that you have delayed payments when you have not.

Steps to File a Complaint With CIBIL

As you understand the meaning of ’ Written Off ’ in CIBIL, the following are the steps you might be aware of if you want to file a complaint with CIBIL once you clear the dues:

• Create or Log in to Your CIBIL Account: If you already have an account, log in to your CIBIL dashboard via the official CIBIL website.
• Access Your Latest CIBIL Report: Before initiating a dispute, refresh your CIBIL Score & Report to ensure you’re using the most up-to-date information.
• Complete the Dispute Request Form: Go to the ‘Dispute Centre’ and complete the online dispute form.
• Await the Bank’s Response: After you submit the dispute form, CIBIL will contact the lenders concerned. Processing typically takes up to 30 days.