How to Change Written Off Status in CIBIL Report?
Removing a written-off account from your CIBIL report is difficult but not impossible. Surprisingly enough, you might not even realize that one of your accounts have been written off. A friend of mine recently shifted base to a new city and changed his phone number. Amidst the hullabaloo of relocation, he forgot to make the payment for one of his oldest credit cards. The lender might have tried to reach him on his phone to remind him of his dues, but the change in phone number rendered their efforts fruitless. His account was written off, and he had no clue! It was when his application for an auto loan got rejected did the poor fellow realize what had happened. A tiny error arising out of unmindfulness had a domino effect of severe magnitude – his plans of buying a car and a house got derailed.
What Can You Do in a Similar Circumstance?
#1 Keep an eye on your CIBIL report
While most credit users are conversant with keeping tabs on their CIBIL scores, very few bother to monitor their credit reports. You can buy your CIBIL report directly from the bureau. A single purchase costs you Rs.550 whereas a yearly subscription is much more economical and costs you Rs.1200 for a report every month.
#2 Check the CIBIL status of your accounts
Closely scrutinize the document for discrepancies or potential red flags. If you are confident that you have identified an error or inaccurate information in your credit report, you must immediately initiate the dispute resolution process through the CIBIL website. In such a scenario, CIBIL will check with the concerned financial institution to determine the authenticity of your claim. You can expect to hear back from CIBIL in 30 days. You might want to contact the bank directly and point out their mistake. This will expedite the process considerably. If your claim is legitimate, CIBIL will remove the mistake and restore your CIBIL report.
#3 Check the payment history of each of your accounts
Go through the ‘Days Past Due’ section carefully. Anything apart from 0 or X should be treated as a caution, and you must act upon it immediately.
#4 Contact the lender
Inquire about the outstanding amount. Explain your stance. Either clear the dues or reach a settlement. Most lenders are considerate towards genuine problems like:
- financial hardship due to the loss of a job or other unforeseen circumstances
- missed payments due to relocation internationally or domestically
- missed payments for not receiving the monthly statement
- cases of fraudulent transactions
#5 Get a NOC from the lender
Once you have paid off the settlement amount, obtain a NOC from those lenders, stating that you no longer owe anything to them. Request the lenders to post the same NOC report to CIBIL, asking them to update your CIBIL status. This should remove the written-off status from your CIBIL report in some time.
To Sum Up
Although this process can remove the tainted records from your credit report, it cannot recover your credit score from the hit. It would be a long process from this juncture to accumulate decent credit score and rebuild your credit history. Be strictly disciplined with your further payments – set up reminders, sign up for autopay schemes. If you wish to rebuild your credit score, make sure that nothing goes amiss again. In a span of a couple of years, your CIBIL score should be on an onward journey.