NPA, Settled and Written-off
Short answer
'Closed' means an account was repaid in full and shut — neutral to positive. 'Settled' means the lender accepted less than owed, and it marks your credit report for years. 'Written-off' means the lender gave up on recovery, which is worse still. Always aim to be reported as Closed.
What the three statuses mean
| Status | What happened | How lenders read it |
|---|---|---|
| Closed | Repaid in full, account shut | Neutral to positive |
| Settled | Lender accepted less than owed | Negative, for years |
| Written-off | Lender gave up on recovery | Seriously negative |
| NPA | Account classified as non-performing | Seriously negative |
The common mistake
Accepting a settlement offer without understanding the trade. A settlement can be the right decision when the alternative is genuinely unmanageable debt — but it should be a deliberate choice made with the report consequence in mind, not a relief accepted in a stressful phone call.
If a settlement is on the table
- Ask for the offer in writing, including the status that will be reported.
- Ask explicitly whether the account will be reported as Settled or Closed after payment.
- If you can repay in full over time instead, negotiate for that.
- After paying, get a no-dues letter and check your credit report two months later.
If it has already happened
It is not permanent. Negative markers age, and every clean month afterwards adds to a fresh record. Rebuild with a secured card, keep utilisation low, and let time do the rest.
Related
All figures on this page are indicative and dated. Rates and fees differ by bank and change over time. Always verify with your bank's official schedule of charges.
Frequently asked questions
How long does a 'Settled' status stay on my credit report?
Negative account markers typically remain visible for several years from the date of closure, in line with bureau retention practice. They lose weight as they age and as clean history accumulates, but they cannot be deleted on request if they are accurate.
Can I get a settled account changed to closed?
Only if you repay the remaining amount and the lender agrees to update the status — some will, some will not. Get any such agreement in writing before paying, and check your report a couple of months later to confirm the update reached the bureau.
Sources
The regulation and official pages this page is checked against. If one of them disagrees with us, it wins.
- FAQs — Understand Your Credit Score and Report — TransUnion CIBIL
- What is a CIBIL Score — TransUnion CIBIL
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Written and checked by the CardSamajh editorial desk · Last reviewed: · How we check this