November 27, 2025 · 8 mins read
Santosh Kumar
A written-off loan or credit card account can weigh heavily. A lot of folks think that after their lender charges it off, their story is finished and they’ll never become credit-worthy again. In fact, a written-off status isn’t ‘the end’. It’s a slump, but one that can be undone with discipline, good financial practices, and an insight into how credit scoring functions in India.
Raising your CIBIL score after a written-off remark is a matter of patience and discipline. It also takes willingness to pay down old obligations, develop new, healthier credit behaviours, and allow your credit history time to heal. With a bit of mindfulness, you can transition from a ravaged score to a robust one and once again qualify for loans and credit cards on good terms.
A written-off account is one that the lender has decided is unlikely to be recovered. This typically occurs when a borrower goes unpaid for multiple months. Rather than maintaining the balance in their current receivables, the lender reclassifies it to a different accounting bucket. That doesn’t mean the debt goes away or the borrower is off the hook. The borrower still has to pay.
CIBIL gets this information from the lender and notes the account as written off in your credit report. One such comment can wreck your credit score — in some cases, dropping it by over a hundred points. It also sends a red flag to future lenders that you couldn’t keep a promise, which makes them reluctant to extend new credit.
But the existence of a written-off remark won’t ruin your credit score. It just means you have to sweat a little and prove that you’re truly better with money.
The key here is to clear or repay the outstanding amount post the written-off status in order to enhance your CIBIL score. You can haggle with your lender for a one-off settlement, or you can pay the entire amount, depending on what you’re able to do at this moment.
Settlement means you pay part of the balance, and the lender writes off the rest. While the lender marks the account as settled, rather than written off, this nevertheless still looks terribly on your credit. Paying in full is always better for your score because it allows the lender to report the account as closed.
Regardless of your choice, dues must be cleared. Until the balance is paid off, your credit score won’t recover, and lenders will still consider your profile a red flag.
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Once you’ve cleared or repaid it, get your lender to update the status with CIBIL. Lenders sometimes also delay reporting these updates, which will mean that your credit score won’t improve even after you’ve cleared dues. You can provide them with your payment confirmation and ask them to report it as recent information to the credit bureaus.
Following this update, your credit report will indicate the cleared or closed status, and the written-off remark no longer appears as an open problem. Your score won’t jump right away, but this update is the initial upward trend that leads to long-term growth.
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Once you’ve caught up, your next objective should be establishing a good credit record. Lenders want to see track records of behaviour, not quick wins. You have to prove you can now manage credit.
The easiest step to take is to get a secured credit card. This is a card secured by a fixed deposit. As the bank has little risk, it is also easier to get approved, even with a low credit score. Responsible use of this card continues to reconstruct your credit profile.
Buy little things and pay them off every month. This demonstrates to lenders that you have grown from previous hardship and are able to responsibly handle credit.
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A key component of your CIBIL score is credit utilisation — how much credit you really use against the total limit available. High utilisation implies you might be money-strapped. Maintaining utilization at a low level, preferably under 30%, is good news.
Even if you just have a secured credit card, strive to be frugal and punctual. Gradually, your usage habits will result in a higher credit score.
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And payment history is the single largest factor impacting your CIBIL score. A written-off remark might have dented your score, but on-time payments will slowly repair it. Each on-time payment builds a good habit in your credit history.
Set reminders or auto pay so you don’t inadvertently miss payments. Even one delay can set back recovery. When lenders observe on-time payments, they gain faith in your fiscal responsibility.
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Credit report monitoring allows you to follow your progress and catch mistakes. Occasionally, lenders edit information improperly, or reporting delays keep your score lower than it deserves. By reviewing your report, you can also dispute inaccuracies with CIBIL.
You need a clean credit report when rebuilding your score post-written-off remark. The more aggressive you are, the more quickly your profile bounces back.
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When your score is low, you might be tempted to take out a bunch of loans or cards, hoping that one will approve. Every application generates a hard inquiry on your report. Too many enquiries make you look credit hungry and can ding your score even more.
A torn-up credit score doesn’t get fixed overnight. Even after you pay off dues and form positive habits, the figures will climb gradually. A written-off remark can’t just vanish overnight, but it does decline month by month as you continue to show responsible money management.
Most borrowers see their credit improve in 12-24 months, depending on payment and credit usage habits. Patience and persistence are key.
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Higher CIBIL Score, better the opportunities. You qualify for loans at lower rates, credit cards with higher limits, and quicker approvals. More importantly, a solid score provides you with monetary peace of mind and keeps you ready for any emergencies or life decisions that come your way. A written-off remark might have made you anxious, but it can also be the motivational moment you need to start cultivating better financial habits. Most folks who reconstruct their credit after such blows end up wiser and much more prepared about their money.
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You will need to pay off the outstanding balance on your account, have your lender update your credit report, and practice good credit-building habits to improve your score.
The time necessary to achieve this will vary depending on your financial habits, but typically initial improvements show within a few months and significant recovery may take over one year.
Settling your written-off balance will increase your credit score by a small amount; however, paying the full balance would have more of a positive impact. Closed accounts are generally viewed as better than settled accounts.
It cannot be manually removed; however, it does stay on the report for a period of several years and gradually becomes much less relevant as you establish positive credit history.
Yes. Using a secured credit card responsibly and making payments on time can be one of the easiest ways to rebuild your credit history.
No. Checking your own credit score is a soft inquiry and will not have any effect on your score.
Only if you are able to manage the payments on those loans. It may be best to start with lower-risk forms of credit, such as a secured credit card.
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