Navigating the world of credit can be a daunting task, especially when you come across unfamiliar terms like ‘written off’ in your CIBIL Report. But what does it mean when a loan is written off? And how does it impact your CIBIL Score? Let’s dive into these questions!
What is ‘written off’ in CIBIL?
A ‘written off’ status in the CIBIL Report appears when a borrower has not been able to make payments against their outstanding loans for more than three months. This status can have adverse implications for their credit score and future borrowing capabilities. This is because it compromises trust in future financial dealings by indicating to future creditors that the borrower is not trustworthy with money.
The lender gives up on recovering the outstanding amount from the borrower and removes the amount from their books as an asset. In such a situation, they are required to ‘write off’ the amount in question and report it to CIBIL as ‘written off’ for it to be recorded as such on the borrower’s CIBIL Report.
How to clear ‘written off’ status in CIBIL Report
Here are the steps that a borrower must take to clear or remove the ‘written off’ status from their credit report:
Identify the issue: The initial step involves identifying the issue by thoroughly reviewing your CIBIL Report. Look for any accounts labelled as ‘written off’, indicating that the lender has relinquished efforts to recover the outstanding amount from you.
Contact your lender: If discrepancies, such as a ‘Closed’ account erroneously marked as ‘written off’ are identified in your CIBIL Report, promptly get in touch with your lender. Engage in a discussion to comprehend the issue and determine the necessary steps for rectification.
Repay the outstanding amount: Clearing the ‘written off’ status necessitates repaying the entire outstanding amount, encompassing the principal, accrued interest, and any additional charges.
Obtain a No Dues Certificate: Following the settlement of all dues, request a No Dues Certificate from your lender. This document serves as evidence that all outstanding amounts have been settled.
Request a CIBIL update from your lender: Subsequent to obtaining the No Dues Certificate, petition your lender to update this information with CIBIL. Ensuring that your lender promptly reports the resolution to CIBIL is crucial for the timely update of your credit report.
Verify your CIBIL Report: After a reasonable duration, re-examine your CIBIL Report to confirm the removal of the ‘written off’ status. This step is essential to ensure that the necessary corrections have been duly reflected.
Raise a dispute with CIBIL if necessary: In the event that the ‘written off’ status persists on your report despite settling all dues and your lender’s reporting to CIBIL, take the initiative to raise a dispute with CIBIL for resolution.
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It is essential to maintain a clean CIBIL Report for a good credit score to avoid obstacles going forward in securing the credit you need. Remember, financial discipline is key to avoiding such situations.
List of possible errors on CIBIL report
Errors in your CIBIL report can significantly impact your credit score. One common issue is the "written off" status, where a lender marks your debt as uncollectible, which can negatively affect your creditworthiness. Understanding the "written off" meaning in CIBIL is crucial. This term refers to debts that lenders no longer expect to recover, but the impact of this on your report can linger for years.
How can I raise a complaint with CIBIL?
If you notice an error like a "written off" entry in your CIBIL report, you can raise a complaint directly with CIBIL. Understanding the "CIBIL written off meaning" is crucial before initiating the process. You can file a dispute through the CIBIL website by providing the necessary documents to support your claim. Once submitted, CIBIL will investigate and correct any discrepancies.
