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.

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.

What does "Date Reported" mean?

The “Date Reported” on your credit report indicates the date on which that information was reported to CIBIL. Sometimes if a lender has stopped reporting information (say on a closed account), the date reported could be a year or more old. If your date reported on open accounts is not within the last 3 months of the date of the credit report you should raise a Dispute Resolution request.

What is the difference between "High Credit" and "Sanctioned Amount" on my credit report?

‘High Credit’ in the accounts section of your credit report is only displayed with credit card and overdraft accounts. It denotes the highest credit utilized in a single month over the life of that credit card.  For example, 2 years ago I spent Rs. 75,000 on some emergency medical treatment on my credit card (which has a credit limit of Rs. 1,00,000).  Given, that was the single highest monthly balance in the history of my credit card usage, this is what gets reflected in my credit report. 

‘Sanctioned Amount’ is displayed along with credit facilities other than credit card and overdraft accounts. The Sanctioned Amount field denotes the amount disbursed to you.

What goes in to your loan approval?

Getting your loan approved can be complicated process. Just go through the Loan evaluation process to understand the critical role, the CIBIL TransUnion score plays in getting your loan sanctioned.

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