On your CIBIL report, every loan and credit card carries a status — and the exact word matters far more than most borrowers realise. “Closed” helps you, “Settled” quietly holds you back, and “Written-off” can block loans for years. Here’s what each one means and which to aim for.
“Closed” and “Paid” — the status you want
“Closed” means you repaid the entire outstanding and the lender shut the account with nothing owed. “Paid” or “Paid in full” carries the same positive signal. These accounts keep helping your score long after they close — they add to your credit age, your mix of credit types, and your track record of honouring contracts.
“Settled” — closed, but at a cost
A settlement is where you and the lender agree that you’ll pay less than you owe, and the rest is waived. The account is reported as “Settled” — a signal to every future lender that you couldn’t repay in full. It typically drops your score by 75–100 points and stays visible for up to seven years. Want to estimate your own hit? Try our Settlement Impact Calculator, and see how to change “Settled” to “Closed”.
“Written-off” — the one to avoid
“Written-off” means the lender gave up on recovery and recorded the unpaid loan as a loss on its books — usually after several months of non-payment. It’s the most damaging status of all, and unlike settlement, the debt is often still fully unpaid. Here’s the full written-off explainer.
Why lenders care so much about one word
All three of these can show a ₹0 balance — but they tell completely different stories. “Closed” says you honoured the contract. “Settled” says you negotiated your way out. “Written-off” says you didn’t pay. Bank and NBFC underwriting systems screen for the “Settled” and “Written-off” tags directly, which is why they can trigger rejections even when your score looks acceptable.
How to move up the ladder
The path is always the same direction: Written-off → Settled → Closed. Pay the remaining balance, collect a No Objection Certificate (NOC), and have the lender re-report the account. Because lenders now update the bureaus every 15 days (rather than monthly), that change reflects faster than it used to.
How long does each status stay?
Negative statuses — “Settled” and “Written-off” — remain on your report for up to seven years from the date they’re reported. Positive “Closed” accounts also stay, and keep working in your favour. The good news: the drag of a negative tag fades well before seven years, because most lenders weight your most recent 24 months of behaviour most heavily.
Frequently asked questions
Is “Settled” the same as “Closed” on CIBIL?
No. “Closed” means you repaid in full — it’s positive. “Settled” means you paid a reduced amount and the rest was waived — it’s negative and stays for up to seven years.
Is “Settled” better than “Written-off”?
Yes. Both are negative, but “Written-off” signals the lender gave up on recovery and is treated as more severe than a negotiated settlement.
Does a “Closed” account help my credit score?
Yes. A cleanly closed, fully-paid account adds to your credit history, age and mix, and continues to support your score after it closes.
Can I change a “Settled” status to “Closed”?
Yes. Pay the remaining waived balance, get a No Objection Certificate, and ask the lender to re-report the account as “Closed”.