Closed loan accounts and what they mean to your Credit Information Report?

If you find a date adjacent to the ‘Closed’ field in the account section of your CIBIL credit report, this means that that loan account has been closed by the loan provider. In other words, it means you have paid off your loan.  However, if you have not been able to pay off your dues in full, your account could still be marked ‘Closed’. In such cases, you may see the ‘Status’ section populated (Written-off or Settled), which is viewed negatively by loan providers.

If no date is populated in the ‘Closed’ field, it implies that your account is still open. This can be harmful to your loan application, if you have taken many loans over the years. Now, why is this harmful? Well, if many loan accounts are perceived to be open, the loan provider is likely to think that you already have large monthly outflows in terms of EMIs. This can negatively impact your loan application. Hence, if you see open accounts on your credit report that are actually closed, raise a Dispute Resolution request.