What is Written Off in CIBIL Report?

 

A good credit score is vitally important, especially when you've planned on taking a loan or applying for a credit card. In fact, credit is one area where the CIBIL plays a major role in maintaining one's credit history. But negative remarks like ‘Written-off’ can reject a credit application, though the CIBIL score is more of acredit facility eligibility requirement. Now, the questionis what is written off in CIBIL? It is important that every responsible borrower understands what this means and how it affects their financial health.

First, understand what a CIBIL report is. It is a complete record of a person's credit history, as well as of a commercial entity, which consists of loans taken, the usage of credit cards, repayment behaviour, and outstanding dues. 

Banks and financial institutions take this report into consideration before approving any credit application. Good CIBIL scores improve the chances of getting loans at better interest rates, while poor scores lead to rejections of credit facilities or higher interest rates.Now focus on the expression.

What does Written Off in CIBIL Reportmean?

Writtenoff in CIBIL means a borrower has defaulted on a loan or a credit card repayment for a sustained period, usually of more than 180 days. Since all possible attempts of recovery have failed, the lender considers it a loss by writing off the amount in its books. It means that this debt is no longer considered collectible by the lender, and the account has been declared by the lender as bad debt.

A borrower must pay the dues even though the lender wrote it off. The status written-off in CIBIL is an alert flag for future lenders; it is a sign that this borrower has defaulted in the past, hence significantly reduces the chances for new credit application. This status will remain on the credit report for several years and could have long-lasting implications on one's financial credibility.

Once you see a remark that says "written off in CIBIL" in your report, immediately act to solve this issue. Contact the lender and ask for a clear statement of the actual amount due. If it is possible, settle down and retire the whole outstanding amount. 

Once this is done, report to the lender to amend his status into the CIBIL report; though "written off" won't be cleared immediately, it will show that the dues have been paid, which means it will get your credit report better by time.

Encouragingly, you should check your CIBIL report regularly so that you know that everything is right. Errors or old data could also lead to a "written off in CIBIL" even though your dues have been cleared. In this case, you can raise a dispute with CIBIL, requesting them to rectify the error.

The phrase "written off in CIBIL' is by no means a joking matter. It reveals a history of nonpayment and thus injuries most severely the credit character. Yet timely actions and responsible financial behaviour can heal or remedy this situation.

 Always ensure repayments of dues take place on time, keep a healthy credit mix, and habitually monitor credit report status. All these small gestures do much toward creating a strong financial future.