How to Remove "Written-Off" Status From Your CIBIL Report (Step-by-Step)

A "Written-Off" (or W/O) status is one of the most damaging entries you can have on your CIBIL report. It tells lenders that you defaulted on a past debt and the bank had to treat it as a loss. This can lower your score by 100-150 points and leads to almost certain rejection for future loan or credit card applications.

However, it is possible to get this negative status removed. Here’s a step-by-step guide on how to do it.

What Does "Written-Off" Mean?

When you fail to pay your dues for more than 180 days (6 months), the lender, as per banking regulations, removes the non-performing asset from its balance sheet by marking it as "Written-Off."

Important: This does not mean your debt is forgiven. The lender still has the legal right to recover the money from you.

Step 1: Contact the Lender and Know the Outstanding Amount

The first step is to get in touch with the bank or financial institution whose account is showing as "Written-Off." Ask them for the total outstanding amount, including any interest and penalties that have accumulated over time.

Step 2: Negotiate for a Full and Final Payment

Your goal is to get the status changed to "Closed."

• Best Option - Pay in Full: The most effective way to clean your report is to pay the entire outstanding amount.
• Negotiate: You can try to negotiate with the lender for a one-time, full and final payment. Sometimes, banks may offer a waiver on some of the penalties and interest. However, be very clear that you are aiming for a full closure, not a "Settlement."

Step 3: Obtain the NOC (No Objection Certificate)

Once you have made the full payment, the most crucial step is to collect the NOC or Loan Closure Letter from the lender. This document is official proof that you have cleared all your dues and the lender has no further claims on you. Do not skip this step.

Step 4: Request the Lender to Update CIBIL

After you receive the NOC, formally request the lender to update your account status with CIBIL and other credit bureaus. The status must be changed from "Written-Off" to "Closed." A "Closed" status indicates that the account has been paid in full.

Step 5: Raise a Dispute with CIBIL (If Necessary)

Lenders usually take 30-45 days to update the information with CIBIL. If the "Written-Off" status is still visible on your report after this period, you should raise a dispute directly with CIBIL.

• How: Go to the official CIBIL website and fill out the online dispute resolution form.
• Provide Proof: Attach a copy of your NOC as evidence that the account has been paid off.
• Follow Up: CIBIL will contact the lender to verify the information. The process usually takes about 30 days.

The Difference Between "Closed," "Settled," and "Written-Off"

• Closed: The best status. It means you have paid all dues as per the original agreement.
• Settled: A negative status. It means you paid a partial amount, and the lender agreed to close the account for less than what was owed.
• Written-Off: The worst status. It means you defaulted, and the lender has recorded it as a loss.

Removing a "Written-Off" status is a critical step toward rebuilding your credit health. It requires effort and patience, but it is essential for securing your financial future.

---

Need help negotiating with the bank or navigating the dispute process? Our team has years of experience in handling such cases.

Contact us for a free consultation: WhatsApp at +91 82902 64071