Posted on 11 October 2026
During COVID I settled a personal loan with a bank for ₹80,000 against a total due of ₹1.3 Lakhs. My CIBIL report now marks the account as 'Settled' and my score is stuck at 645. How can I clean this up?
Portal Admin & Advisory
A 'Settled' status remains on your credit bureau file (CIBIL, Experian, CRIF) for 7 years from the date of settlement unless you proactively convert it to 'Closed'. Here is the exact procedure to upgrade it: 1. Approach the Lending Bank: Write to the bank's retail recovery / grievance desk requesting the settlement waiver breakdown and expressing your intent to clear the waived differential amount (in your case, approximately ₹50,000 plus applicable interest adjustments). 2. Obtain a Settlement-to-Closure Letter: Once the residual balance is paid in full, insist on a formal 'No Dues Certificate' (NDC) that explicitly mentions the account has been upgraded from 'Settled' to 'Closed / Paid in Full'. 3. Bureau Update Cycle: Under RBI Master Directions, banks must report updated status to all four credit bureaus within 30 days. You can also initiate an online CIBIL Dispute with your NDC copy to expedite the record correction. Once marked 'Closed', prospective lenders will no longer treat your profile as a write-off risk.
