Written-Off / Settled Status
Definition
Adverse credit-report statuses: 'written-off' means the lender considers the debt unlikely to be recovered; 'settled' means you paid less than the full amount owed. Both are damaging.'Written-off' and 'settled' are adverse statuses on a credit report. A written-off account is one the lender has concluded is unlikely to be recovered (commonly after prolonged non-payment) and is among the most damaging marks — commonly cited as remaining for up to about seven years unless resolved. A 'settled' status means the lender accepted less than the full outstanding amount to close the account; it signals incomplete repayment and reflects negatively. Repaying in full to a 'closed' status is far better than leaving either mark.
Related guides
Related terms
- Payment History — The month-by-month record of whether you repaid credit on time; generally the most important factor in a credit score, shown via DPD on your report.
- Credit Report — A detailed record of a person's borrowing and repayment history maintained by a credit bureau.
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