Can You Remove a Closed Loan from Your Credit Report?
No, you typically cannot remove a closed loan from your credit report — nor should you.
A closed loan with a good repayment history actually boosts your credit score and builds your creditworthiness.
Why Closed Loans Are Still Reflected on Your Credit Report
Credit bureaus like CIBIL, Equifax, or Experian keep your credit data for up to 7 years. This includes:
Fully repaid loans
Settled or written-off accounts
Loans closed with regular EMI payments
This history helps lenders assess your past repayment behaviour.
Should You Remove a Closed Loan?
Only in the following cases:
1. Incorrect Reporting
If your loan shows as:
Still open
Defaulted or settled incorrectly
Paid but not updated
Then you should file a CIBIL dispute to correct the entry, not delete it.
2. Identity Errors
If the loan doesn’t belong to you (e.g., due to fraud), then yes — raise a dispute and request removal.
Vizzve Finance Insight
Don’t fear closed loans — embrace them.
A clean repayment record on a closed loan improves your credit mix, credit age, and overall score.
If your report is inaccurate or outdated, Vizzve can help you raise a CIBIL correction request, fast and hassle-free.
Why You Should Keep Closed Loans on Record
| Reason | Benefit |
|---|---|
| Proof of repayment | Boosts creditworthiness |
| Builds long-term credit history | Improves score over time |
| Shows financial discipline | Increases loan approval chances |
How to Handle Closed Loans on Credit Report
Check if the status is ‘Closed’ or ‘Settled’
Ensure the outstanding balance is ₹0
Keep loan closure documents safe (NOC letter)
Frequently Asked Questions (FAQs)
Q1. How long do closed loans stay on my credit report?
Up to 7 years from the date of closure.
Q2. Can I remove a closed loan if I paid it off?
No. But it’ll be marked “Closed” and help your credit history.
Q3. What if my closed loan still shows as open?
Raise a dispute with CIBIL or the lender to correct the entry.
Q4. Does a closed loan hurt my credit score?
Not at all. In fact, it can improve your score if paid on time.
Q5. Can Vizzve help with credit report correction?
Yes! Vizzve assists users in identifying and resolving credit report issues easily.
Published on : 22nd July
Published by : SMITA
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