Removing “Settled” Status from Your CIBIL Report: A Simple Guide

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Finding “settled” next to your loan status on your CIBIL report can be concerning. It can potentially lower your credit score and limit your access to future loans and credit cards. But fear not, there are ways to remove this status and improve your credit health!

What Does “Settled” Mean?

“Settled” means you paid off a debt for less than you originally owed. While this may seem good, it can hurt your credit score.

Remove settled from credit report: Improve your CIBIL Score

How to Remove “Settled”:

Here are your options:

1. Pay Off the Remaining Amount (Best Option):

  • The best way to remove “settled” and boost your score is to pay the remaining amount you owe on the settled account.
  • Once paid, ask your lender for a “No Objection Certificate” (NOC). This document shows the debt is fully settled.

2. Dispute the Status (if wrong):

  • If you think “settled” is a mistake, file a dispute directly on the CIBIL website or app.
  • You’ll need proof, like payment receipts or bank statements, showing you paid off the loan.

3. Wait it Out (if needed):

  • If you can’t pay or dispute, you’ll need to wait for the “settled” status to disappear from your report.
  • It usually takes 4 years for negative information like settlements to fall off, but it can vary (2-7 years).

A Complete Guide to Removing Write-Offs from Your CIBIL Report Read More

Important Tips:

  • Act Fast: The sooner you deal with “settled,” the sooner you can rebuild your credit score.
  • Be Responsible: While working on the “settled” status, be responsible with your credit by making timely payments on other loans and keeping your credit card usage low.
  • Get Help (Optional): If you’re struggling financially or need help fixing your credit, consider talking to a credit counsellor or financial advisor.

Remember: Removing “settled” takes time and effort. By following these steps and being responsible, you can improve your credit score and open doors to better financial opportunities in the future.

Disclaimer: This information is for general education only and not financial advice. Consult a qualified financial advisor for personalized guidance.

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