Is it Possible to Remove Settled Accounts from CIBIL Reports?
Yes, it is possible to remove settled accounts from credit reports. However, the only way to do so is to clear the outstanding balance amount pending on your previous lender. Once you have cleared the outstanding balance amount, obtain a no-objection certificate from your previous lender and submit it to the credit information agencies. Once you do this, the credit rating agencies will change the status of your loan account from ‘settled’ to ‘closed’.
Sometimes, a borrower’s CIBIL report shows ‘settled’ even when the borrower has never settled an account. This happens when lenders and financial institutions pass on wrong information by mistake to credit rating agencies. In this case, you can get CIBIL to remove the ‘settled’ status by raising a dispute. Follow these steps to have the settled account removed from your CIBIL report in this case.
- Go to the official website of CIBIL and log in to your account with your credentials. If you do not have an account, create one to file a dispute.
- Go to ‘Credit Reports’ on the dashboard and then select ‘Dispute Centre’.
- Next, select ‘Dispute an Item’. Once you do this, an online application form will open.
- Fill in the details and submit the form.
CIBIL will act immediately, and you can expect to see an updated credit report within a few weeks.
Also Read: Why Is Credit Report Important?
What is the Meaning of ‘Written Off' Status in CIBIL?
The ‘Written Off’ status visible in the CIBIL report signifies that the borrower has not been able to make payments against their outstanding loan amount for more than 3 months or 180 days. This status may have implications on the borrower’s overall credit score. Since credit score is a pivotal factor in determining the creditworthiness of a borrower, a lower credit score due to the ‘Written Off’ status in the CIBIL report may affect their eligibility for loans in future.
