Will it Help Raise My CIBIL Score If I Pay the Written-off Amount?


  • Will your CIBIL Score improve if you pay the written-off loan or credit card debt amount?
  • If so, how much time will it take for your score to be more than 700? Let’s read all these and more here

Have defaulted on loan or credit card payments in the past? You will most likely have a written-off label marked against your name. The written-off mark is given to individuals failing to clear the dues on their loan or credit card despite constant payment intimations made by the lender. As soon as the debt gets written off, your CIBIL score will come down and render you ineligible for credits in the future. As you may require a new loan in the near to long term, the written-off mark should disappear soon from the credit report that CIBIL will have for you. How will it disappear? Simple, by paying off the written-off amount. It will help improve your CIBIL score and make you eligible for credits. But how much the improvement will be and how can you pay off the written-off amount? We will tell all that and more in this post. So, keep reading!

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How Will My CIBIL Score Improve If I Pay the Written-off Amount?

When you pay off the written-off loan or credit card amount, the lender marks it as debt paid while sending the report to CIBIL, a noted credit bureau in India. Since the written-off amount will most likely be massive, you may not be able to pay the entire chunk in one go. So, you will most likely pay off the debt via monthly installments. In case you follow this route, the CIBIL score will improve with the payment of each installment, unlike when you pay the entire amount and hope the credit score improves soon.

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How Much Will It Take for the CIBIL Score to Improve?

It’s hard to predict the exact time for the improvement in the CIBIL score. Check what your credit score is after the loan or credit card, whichever you have, has got written off. In case it is 200 or more points away from touching 700, which is considered a good credit score, you may take a couple of years to touch the landmark figure provided you maintain a spotless payment record with no delay.

How Will Your CIBIL Score Change as You Begin to Pay Off the Written-off Debt?

Like we said earlier that the improvement in the CIBIL score will correspond to the installment payment you make. The lender will report to CIBIL after 30 days of making the payment. CIBIL will then take a month or so to update the latest credit score. It might not increase your score fast given that you are paying the debt, which has got written off. So, you will need to be patient and keep up the good work of paying the dues on time. It will reward you by taking your score to 700 and above gradually. CIBIL score generally ranges from 300 to 900 in India and is given based on the repayment track of individuals.

How Can You Ensure Timely Repayment of Debt After Deciding to Pay Off the Written-off Amount?

Since it is about improving the CIBIL score after the written off, you need to make sure not a single delay happens. So, you need to step up your savings plan and say ‘No’ to unnecessary expenses. Cut down on your luxuries while also ensuring your life is not compromised much. A sacrifice of some sort will make you smile a few years later. So, don’t be shy of compromising on some of your liberties if that allows you to pay the written-off amount, maybe in small bunches.

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Shall You Check the Credit Score After Making Each Payment of the Written-off Amount?

As told before, the score would improve gradually. So, checking the credit score after making each loan or credit card payment may not be advisable. Plus, CIBIL takes about 2 months from your payment date to update the latest credit score. But checking the CIBIL score in a gap of 6 months can still be recommended. Hopefully, the score would rise by some points over such a gap.

What Should You Do After You Finish the Payment of Written-off Amount in Installments?

After paying the last installment of the written-off amount, you need to request the lender to get the written-off label removed against your credit account. The lender will change the status to ‘Debt Fully Paid’ from Written-off in its report to CIBIL. A couple of months later, CIBIL will update the status as well as the score, which will most likely be 700 and above.

How to Check the Debt Fully Paid Status in CIBIL Report?

You can check the same on the official website of CIBIL by creating an account. CIBIL will ask you to mention a few details for the account creation. Once the account is created, you can check the ‘Debt Fully Paid’ status. You also have one more option i.e. Wishfin, an official partner of CIBIL where you can check the credit score and latest credit status for free. Here’s how you can do so at Wishfin.

  • Visit Wishfin.com
  • Go to ‘CIBIL Score
  • If you already have an account, you can click on ‘LOGIN’ to see your detailed credit report
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If you do not have an account, you need to create one by mentioning the following details –

  • Name
  • Date of Birth
  • PAN Number
  • Contact details such as the mobile number and email address
  • Tick on the checkbox of terms and conditions and click on ‘Submit’

This way, you can get the account created. Afterward, click on ‘LOGIN’ to check your credit report, wherein you can see the credit score as well as the latest credit status.

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