To remove a “written off” status from your credit report, first repay or settle the outstanding dues with the lender. Then, request a No Objection Certificate (NOC) and ask the lender to update your status with credit bureaus. Once updated, the remark may be changed or removed over time.
How to Remove “Written Off” Status from Your Credit Report?
Your credit report is a powerful snapshot of your financial behaviour. One of the most alarming terms you might come across in your report is “written off” under a credit facility status. This can be a red flag for lenders and may significantly affect your chances of getting a loan or credit card in the future.
So, what does “written off” mean, and more importantly, how to remove written off from a credit report? If you're seeking answers and want to regain control of your credit profile, this blog will guide you through everything you need to know. Let’s get started.
What Does “Written Off” Mean in a Credit Report?
When a borrower defaults on a loan or credit card for an extended period, usually 180 days or more, the bank or financial institution may consider the amount uncollectible. In such cases, the lender “writes off” the outstanding dues from their books for accounting purposes.
This doesn’t mean the borrower is no longer responsible for repaying the amount. It simply means the lender has acknowledged that the debt hasn’t been paid and is unlikely to be recovered soon. The written-off credit facility status appears in your credit report and serves as a red flag for future lenders.
How Does a Written-Off Status Affect Your Credit Score?
Your good credit score reflects your repayment discipline and creditworthiness. When an account is marked as “written off,” it shows that you’ve failed to meet repayment obligations. As a result:
- Your credit score can drop significantly.
- Future lenders may hesitate to approve your credit applications.
- You may face higher interest rates or stricter terms, even if approved.
- It stays on your credit report for up to 7 years, unless resolved.
How to Check Credit Report for Written-Off Accounts
If you suspect a write-off or want to confirm it, start by checking your credit report.
Here’s how you can do it:
- Visit the website of credit bureaus like CRIF
- Visit the website of credit bureaus like CRIF
- View your credit report online.
- Look under the section titled “Account Information” or “Credit Facilities”.
- If the status shows “written off”, note the lender’s name, account number, and amount.
Checking your credit report regularly helps you spot such issues early and take corrective action.
How to Remove Written Off in Credit Report?
If you're wondering how to clear write off in CRIF or other bureaus, here are the steps:
1. Contact the Lender
The first and most important step is to reach out to the lender (bank or NBFC) that reported the write-off.
- Request account details, outstanding balance, and settlement options.
- Ask for a one-time settlement (OTS) or repayment plan, depending on your financial situation.
2. Repay the Dues or Settle
You can either:
- Pay the entire outstanding balance: This is ideal if you want a “closed” status with no strings attached.
- Settle the account: In a settlement, you pay a mutually agreed amount (less than total dues), but the account may still be marked as “settled,” not “closed.”
Note: Settled status still impacts your credit report negatively, though it’s slightly better than “written off.”
3. Obtain a No Dues Certificate
Once payment is made, ensure you collect a No Dues Certificate (NDC) or a settlement letter from the lender. This is proof that you’ve cleared or settled the account.
4. Request Lender to Update the Credit Bureau
Ask your lender to update the account status with the credit bureaus. This may take 30 to 45 days.
Once updated:
- “Written off” should be replaced with “Closed” (if full payment made), or
- Replaced with “Settled” (if partial settlement accepted).
File a Dispute if the Status Is Not Updated
Even after repayment, if the written-off status continues to appear on your credit report, you have the right to file a dispute.
How to do it:
- Visit the credit bureau’s official portal.
- Log in and go to the Dispute Resolution section.
- Fill in the details of the account and attach supporting documents (NOC or settlement letter).
- Submit the dispute request.
The bureau will verify the claim with the lender and update your report if the dispute is found valid.
How Long Does It Take to Remove “Written Off” from the Report?
Once the lender updates your account status and the bureau processes your dispute (if applicable), it may take several weeks for the changes to be reflected on your credit report.
However, the earlier “written off” status may still appear in your credit history, but the current status will be reflected as “closed” or “settled”.
Tips to Rebuild Credit After a Write-Off
If your credit score was affected due to a write-off, don’t worry. You can start rebuilding your creditworthiness with the following steps:
- Pay EMIs and credit card bills on time.
- Avoid taking new loans immediately unless necessary.
- Keep your credit utilisation ratio low (preferably under 30%).
- Check your credit report every few months to ensure accuracy.
- Consider taking a secured credit card to rebuild your score.
Conclusion
A "written off" status on your credit report can be a setback, but it’s not the end. By repaying or settling the debt and working with your lender to update the status, you can improve your credit over time. Regularly checking your credit report and staying proactive is key to rebuilding your financial health.
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