Having a “Settled” status in your CIBIL report can significantly reduce your credit score and affect your chances of securing loans, credit cards, or even renting a house. Many people in India unknowingly damage their credit history by settling loans and then wonder why their credit applications are constantly rejected.
If you’re one of them and want to remove the settled status from your CIBIL report — you’re in the right place. In this in-depth guide, we’ll explain everything you need to know, including how to fix it step-by-step, and how CrediBoost Solutions Pvt. Ltd. can professionally help you rebuild your credit profile.
Table of Contents
- What is a “Settled” Status in CIBIL?
- How Does a Settled Status Affect Your Credit Score?
- Difference Between Settled and Closed
- Why You Should Remove “Settled” from Your Report
- Can Settled Status Be Removed?
- Step-by-Step Guide to Remove Settled Status from CIBIL
- Common Mistakes People Make
- How CrediBoost Solutions Can Help You
- Real Client Success Stories
- FAQs
- Final Thoughts & Call to Action
1. What is a “Settled” Status in CIBIL?
When a borrower fails to repay a loan or credit card in full, and the lender agrees to accept a lower amount as a one-time settlement, the account is marked as “Settled” instead of “Closed.”
This indicates that you didn’t fulfill your loan agreement as originally agreed.
Example:
If you owed ₹1,00,000 and the bank agrees to close the account if you pay ₹60,000, this is called a settlement, and your account will show “Settled” on your credit report.
It’s important to note that this status is negative, even if you’ve cleared your dues in part.
2. How Does a Settled Status Affect Your Credit Score
Having a settled account directly impacts your credit score and financial image. Here’s how:
- 🔻 Reduces your credit score by 75–150 points
- ❌ Shows banks that you failed to repay full dues
- 🔒 Restricts your access to fresh loans or credit cards
- 📉 Can lead to loan application rejections for 3–7 years
3. Settled vs Closed: Know the Difference
| Status | What It Means | Impact on CIBIL |
|---|---|---|
| Closed | Loan fully paid as per original agreement | Positive |
| Settled | Part payment accepted by bank; not as per agreement | Negative |
If you want to build your creditworthiness, having a “Closed” status is essential — not “Settled”.
4. Why You Should Remove “Settled” from Your CIBIL Report
You should always aim to replace “Settled” with “Closed”. Here’s why it’s important:
- ✅ Boosts your CIBIL Score immediately
- ✅ Makes you eligible for home, car, and personal loans
- ✅ Rebuilds your credit history for the long term
- ✅ Increases your approval chances for credit cards
- ✅ Regains trust from banks and NBFCs
5. Can Settled Status Be Removed from CIBIL?
Yes, but only if the original lender updates your credit data with CIBIL. Credit bureaus like CIBIL, Experian, or CRIF Highmark do not change any record on their own — they only update based on data from banks and NBFCs.
To remove it, you must:
- Pay any remaining dues to the bank
- Get a No Dues Certificate (NDC)
- Ask the lender to send the updated status to the credit bureau
- File a dispute with CIBIL, if needed
This process is possible — but complicated for the average borrower. That’s where credit repair professionals like CrediBoost Solutions Pvt. Ltd. come in.
6. Step-by-Step Guide to Remove Settled Status from CIBIL Report
Here’s a clear roadmap to follow:
Step 1: Download Your CIBIL Report
Get your latest report from:
- www.cibil.com
- Or use CRIF Highmark / Experian / Equifax
Identify the loan account(s) showing the “Settled” status.
Step 2: Contact the Lender
Call or visit the branch where you settled the loan. Request the outstanding balance (if any) and ask if they are willing to convert the status to “Closed” upon full payment.
Step 3: Pay the Remaining Dues
If possible, repay the remaining amount and get:
- Receipt of payment
- No Dues Certificate (NOC)
- Settlement Closure Letter
Step 4: Ask the Lender to Update CIBIL
Submit a written request to the lender to update the status to “Closed” in the credit bureau records.
Step 5: Raise a Dispute with CIBIL
Visit the CIBIL Dispute Portal:
- https://www.cibil.com/dispute
- Submit your supporting documents (NOC, payment proof, closure letter)
Step 6: Follow Up
It may take 30–45 days for the status to be updated. Monitor your CIBIL report weekly.
Note: If the lender refuses or delays, consider hiring a credit repair agency for faster resolution.
7. Common Mistakes to Avoid
- ❌ Settling a loan without understanding the impact
- ❌ Not collecting written proof (NOC/letter)
- ❌ Ignoring the CIBIL update after settlement
- ❌ Believing “settled” is a good status
- ❌ Falling for fake agents or shortcuts
8. How CrediBoost Solutions Pvt. Ltd. Can Help You
We are India’s trusted credit improvement and settlement resolution experts.
Our Specialized Services Include:
- 📊 Credit Report Analysis
- 🤝 Negotiation with Banks/NBFCs
- 📝 Formal Drafting of Letters and Applications
- 🧾 Settlement Follow-Up & Closure Assistance
- 🧑💼 CIBIL Dispute Filing
- 📈 Credit Score Monitoring and Recovery Plans
We manage the entire process — from contacting your bank to correcting your CIBIL status — so you can focus on your life, not paperwork.
9. Real Client Success Story
Name: Manoj Gupta
Location: Patna
Problem: Settled ICICI Credit Card (₹1.3 Lakh)
Before: Score was 594. Rejected for every personal loan.
After: With CrediBoost, he paid ₹30,000 balance, got “Closed” status within 40 days. Score improved to 738. Now owns a home loan and credit card.
“Thanks to CrediBoost Solutions, I went from being rejected everywhere to being a trusted borrower again. Highly professional and 100% genuine.”
10. Frequently Asked Questions (FAQs)
Q1. How long does a settled account stay in CIBIL?
👉 Up to 7 years unless corrected by the lender.
Q2. Can I remove settled status without paying more?
👉 Rarely. Banks usually demand full remaining dues to update to “Closed.”
Q3. Will my score improve if I remove “Settled”?
👉 Yes, usually by 75–150+ points, depending on the account size.
Q4. Is it legal to remove settled status?
👉 Yes, as long as you clear remaining dues and follow proper process.
Q5. How much time does it take?
👉 30–60 days with full documentation and follow-up. Faster with professional help.
11. Final Thoughts
“Settled” might sound like a solution — but it’s often a long-term problem if not corrected. Don’t let one mistake define your financial future.
Removing settled status is absolutely possible. It just needs the right steps, the right documents, and sometimes the right support.
Whether it’s a personal loan, credit card, or business loan, CrediBoost Solutions Pvt. Ltd. can help you fix your credit report and get back on the path to approvals and financial confidence.
✅ Ready to Clear “Settled” Status From Your CIBIL Report
We’re here to help. Connect with us today and start your journey toward a clean credit report and a high CIBIL score.
📞 Contact Details:
- 🌐 Website: www.crediboost.in
- 📧 Email: qwikonsultsolutions@gmail.com
- 📱 Call/WhatsApp: +91 70869 62101
- 📍 Location: Lakhimpur, Assam – 784160