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Think of your CIBIL score as your financial report card. Just like a good report card helps you get into a good college, a good CIBIL score (typically 750 and above) helps you get loans and credit cards easily, at lower interest rates. Lenders check this score to see if you are reliable and will pay them back.
But what happens when there’s a big, red mark on this report card? One of the most severe red marks is a status known as “Written Off status in CIBIL.” Let’s understand what this means for you.
What Does 'Written Off status in CIBIL Actually Mean?
When a bank or lender Write Off your loan, it means they’ve decided that you’re not going to repay the money. After trying for a long time to recover it, they remove the loan from their records and mark it as a loss for accounting purposes. They no longer count it as an asset.
However, here’s something important: Written Off status in CIBIL does NOT mean you no longer owe the money. You are still legally responsible for paying back the loan. The bank can sell the debt to a collection agency, which will then try to recover the money from you, often more aggressively.
The Heavy Impact of a Written Off status in CIBIL
A Written Off status in CIBIL entry is one of the most damaging items you can have on your credit report. Its impact is severe and long-lasting:
🔹 Big Drop in Credit Score:
Your CIBIL score can fall below 600, making lenders see you as a risky borrower.
🔹 Loan & Credit Card Rejections:
Almost no bank or legitimate financial institution will approve you for a new loan, credit card, or even sometimes a higher-limit credit card.
🔹High-Interest Rates (If approved):
In the rare case you do get approved, it will be at exorbitantly high interest rates, costing you a lot more money.
🔹Mental Stress &Harassment:
The constant follow-ups from recovery agents can cause significant mental stress and anxiety.
🔹The Way Out: How to Remove a ‘Written Off’ from CIBIL
Many people search for a quick fix or a magic trick to remove this status. It’s important to know that there is no instant or illegal method to delete a genuine Written Off status in CIBILentry. The process requires patience and responsible financial behavior.
Here’s a simple, step-by-step guide:
🔹Don’t Ignore the Issue – Deal with It:
The first and most crucial step is to stop hiding from the issue. Check your free CIBIL report online to confirm the status, the lender’s name, and the outstanding amount.
🔹Pay off the Debt:
To resolve the issue, get in touch with the original lender – the bank or NBFC that gave you the loan. Avoid dealing with recovery agents until you’ve confirmed everything with the bank or financial institution through written confirmation. After receiving written confirmation, paying the full amount is the best option, as it will help protect your credit history.
🔹Get the No Objection Certificate (NOC):
After making the payment, be sure to get important documents from the bank, like the No Objection Certificate (NOC) or the Loan Closure Letter. These documents confirm that your loan has been cleared and no further action is needed.
🔹Ensure the CIBIL Record is Updated:
The bank is responsible for updating your “Written Off” status to “Post Write off Closed” in the CIBIL database. This process can take 30-45 days. Follow up with the bank to ensure they have sent the update.
Now you might be wondering, what does “Post Write-Off Close” mean? After making the full payment to remove the “Written Off” status from your CIBIL report, why does the status change to “Post Write-Off Closed”?
Before January 2025, lenders typically removed the “Written Off” status entirely once the outstanding amount was paid, leaving the status blank on the credit report. However, after January 2025, the RBI introduced the “Post Write-Off Closed” status to provide a clearer record of the account’s history.
This new status indicates that the account was previously written off in CIBIL due to delayed EMIs by the borrower, but was later fully paid off and closed.
This is why the “Written Off” status has now been replaced by “Post Write-Off Closed” on credit reports.
Start Rebuilding Your Credit:
Once the problem is solved and the account is updated you can begin working on improving your credit. To rebuild your score, try these steps:
➡️Get a small secured credit card and pay off the balance in full every month.
➡️Pay all other bills (like utilities) on time.
➡️Keep your credit card usage low.
How to Avoid Getting a “Written Off status in CIBIL”in the First Place
🔹Only Borrow What You Can Repay:
Before taking out a loan, be realistic about how much you can afford to repay. Don’t borrow more than you can comfortably manage.
🔹Prioritize Your Loan Payments:
If you’re facing financial difficulty, make sure to prioritize your loan EMIs (Equated Monthly Installments) over other non-essential expenses.
🔹Communicate Early with Your Lender:
If you think you might miss an EMI payment, contact your lender immediately. Most banks and financial institutions are open to restructuring your loan or offering a temporary EMI holiday if you reach out before you miss a payment.
🔹Don’t Use Loans for Unnecessary Spending:
Avoid taking loans to fund lifestyle expenses or purchases that don’t add long-term value. Loans should be used for important, productive purposes, not to support unnecessary liabilities.
Conclusion
Written Off status in CIBIL feels like a life sentence for your financial dreams, but it isn’t. It’s a serious setback, but with the right, disciplined approach, you can overcome it. The path involves securing the right documents, and patiently rebuilding your creditworthiness. It’s a journey of taking responsibility for your financial past to create a stable and prosperous future. Your credit report is a story, and you have the power to start writing a new, positive chapter today.
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