Written Off in CIBIL: Meaning, Impact on Your Credit Score & How to Recover

A written-off status in your CIBIL report means the lender has marked your loan as unpaid after you missed EMIs for 180 days or more. You still owe the money and your credit score drops sharply. You can remove this status only by repaying or settling the dues and getting the lender to update CIBIL.

Knowing how to remove the ‘written-off’ status from the CIBIL report is crucial to increasing your probability of securing a loan. This is because loan default may lead to rejection of your loan applications.

A written-off status in a CIBIL report means the following:

• You have not paid your EMIs against the borrowed amount
• You did not make any repayments for 6 months
• Your credit score and future borrowing capabilities may be affected

Read on to learn more about what is written off in CIBIL and ways to avoid loan defaults.

What Does Written Off Mean in CIBIL?

Written off meaning in CIBIL indicates that you have not paid your EMIs for more than 90-180 days. This is when lenders categorise your loan as a loss. This does not mean your loan is forgiven. You still have to repay the outstanding amount. This status remains on your report until you clear or settle the outstanding balance.

How Does a Written-Off Status Impact Your CIBIL Score?

A written-off status can affect your credit score in many ways and make future borrowing harder. Here’s how it can affect your creditworthiness:

• Large score drop: Your CIBIL score can fall by 50 to 100 points or even more, depending on your past repayment behaviour. This drop happens because missed EMIs signal a high risk to lenders.
• Lower approval chances: With a written-off tag on your report, lenders may hesitate to approve new loans or credit cards, as it shows you struggled to repay earlier.
• Higher interest rates: Even if a lender decides to offer you credit, they may charge a higher interest rate to compensate for the risk.
• Long-term impact: The written-off remark can stay on your report for years unless you clear or settle the dues. This can affect your borrowing options until the status is corrected.

How to Remove the Written-Off Status From a CIBIL Report?

Here is a simple step-by-step process to help you clear the written-off remark from your report.

Step 1: Contact your lender
Reach out to the lender and ask for the total outstanding amount, including penalties or charges.

Step 2: Discuss repayment options
If you cannot pay the full amount, request a settlement plan. Explain your situation honestly.

Step 3: Clear the outstanding dues
Pay the amount mutually agreed upon. This can be a full repayment or a settlement amount.

Step 4: Collect your NOC/NDC
After payment, ask for a written No Due Certificate or No Objection Certificate. This is proof that the loan is closed.

Step 5: Ask the lender to update CIBIL
The lender will send updated repayment details to CIBIL. This removes or changes the written-off status.

Step 6: Check your CIBIL report
Within a few weeks, your report will reflect the updated status. You can even raise a dispute on the CIBIL website if the status still reflects written off.

Tips to Avoid ‘Written-Off Status’ in Future

Here are simple habits that can help you stay on track and avoid a written-off remark.

• Plan your EMIs: Choose a loan amount and tenure that fits your monthly income
• Compare offers: Select lenders with reasonable interest rates and clear terms
• Read the agreement: Check for hidden charges or strict penalties before signing
• Track your expenses: Follow a simple monthly budget to avoid missing payments
• Talk to your lender early: If you expect repayment trouble, reach out before an EMI is missed

How to Rebuild Your Credit Score After ‘Written-Off’ Status?

Here are a few easy steps that can help you slowly improve your score and regain healthy credit.

Step 1: Pay your dues on time
Make sure all EMIs, credit card bills and utility payments are cleared before the due date. Consistent on-time payments can really help rebuild your score.

Step 2: Keep your credit utilisation low
Try to use less than 30 percent of your credit limit. Low usage shows lenders that you manage credit responsibly.

Step 3: Avoid taking too many loans
Multiple loan applications can reduce your score further. You should borrow only when necessary.

Step 4: Check your CIBIL report regularly
Keep an eye on your report for any errors. Raise a dispute if you see incorrect information.

Step 5: Use small credit products
Taking a low-limit credit card or a small loan and repaying it on time can also slowly improve your credit profile.

Clearing a written-off status might take time, but it gets easier once you repay or settle your dues and keep your credit habits on track. With consistent payments and regular credit checks, you can rebuild your score and improve your borrowing chances significantly.

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FAQs on How to Remove a Written-Off Status from the CIBIL Report

How long does a write-off stay on my CIBIL report? 

A written-off status can stay on your report for up to 7 years unless you repay or settle your dues and get the lender to update CIBIL.

Can written off debt be removed from a credit report? 

Yes, but only after repayment or settlement. Once the dues are cleared and the lender sends updated data to CIBIL, the written-off tag is removed.

How do I clear my written-off amount? 

You must contact your lender, get the outstanding amount, pay the dues and collect an NOC or NDC. Only then can the lender update your report.