Credit Score Basics > What does "written off" mean on your credit report?

What does "written off" mean on your credit report?

Wollit Team2 minute read · Updated 19th September 2024

When you check your UK credit report, you might see the term "written off." Here is what it means, how it affects your credit report, and what you can do about it.

What does "written off" mean?

When a debt is marked as "written off" on your credit report, it means that the lender has decided they are unlikely to get the money you owe them. This usually happens after you have missed several payments – often six months or more.

When a lender writes off a debt, they remove it from their records as something they expect to collect because they believe they won’t receive payment at all from you. Not a good look.

Here are some examples of written off debts:

If you owe £1,000 on a credit card and stop making payments for six months, the bank may write off this amount as uncollectible. This will show as "written off" on your credit report.
If you take out a personal loan of £5,000 and fail to make payments for over six months, the lender may write off this loan. Even if they sell it to a collection agency later, it will still show as "written off."

How do written off debts work?

Before writing off a debt, lenders usually try to collect the money by sending reminders, making phone calls, or even hiring collection agencies.

These agencies will then try to collect the money from you. You may start receiving calls or letters from them asking for payment.

Writing off a debt means the lender has decided they will stop trying to collect it actively. However, this does not mean the debt is forgiven; you still owe the money.

How does a written off debt affect my credit score?

Having a written-off debt on your credit report can have serious consequences for your credit score and future loan approval chances.

A written-off debt is seen as a major negative mark on your credit report. It can lower your score significantly – sometimes by 100 points or more – making it harder to get approved for loans or mortgages in the future.

Also, a written-off debt can stay on your credit report for up to six years from the date of the first missed payment. Even if you pay off the debt later, the written-off status will remain as "paid," but it will still hurt your score.

How can I remove written off status from my credit report?

Removing a written-off status from your credit report is quite difficult.

The first step is to pay any outstanding amount. Once paid, ask for proof that you have settled the debt.

After paying off the debt, reach out to your lender and ask them to update your status with the credit bureau to show that the debt has been paid.

Also, if you believe there’s an error regarding the written-off status (like if you've already paid), you can dispute this with the credit reference agencies. Provide any documents that support your claim, like your recent bank statements.

Can I still pay off a written off debt?

Yes, you can and should still pay off a written-off debt. However, paying it off does not remove the written-off status from your credit report; it will just change to "paid." This means lenders can still see that there was once an unpaid debt. The difference is that now they’ll see you in a better light – you won’t be a “bad borrower” anymore.

At the end of the day, though, what lenders care most about is your credit history.

Luckily, now there are many apps that can help you build and improve credit.

One such app is Wollit. Wollit is an app that reports your monthly subscription as loan repayment, helping you build a history of timely repayments without the risk of getting hit with high-interest charges or going over your card limit. It can even report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you're responsible and pay your bills on time.