How does "Written Off" or "Settled" affect your credit application?

Given that a CIBIL credit report helps a loan provider ascertain your ability to pay additional debt based on your past performance, a ‘’written off’ or ‘’settled’’ account implies that you have not been able to pay your past dues. Hence, Loan providers may view accounts that are reported as ‘’written off’ or ‘’settled’’ negatively and this may affect your chances of a loan approval.