CIBIL Score: CIBIL score can be improved even after credit card settlement, just follow these 5 measures..

If it becomes difficult to repay the credit card loan, then many times people settle with the bank; that is, instead of returning the entire amount, they settle the account by paying a fixed amount. Even though this provides immediate relief, it has a bad effect on your Credit Score or CIBIL Score. Often, the score falls by 75 to 100 points, and the tag of Settled remains in the report for 7 years. This means that you may face problems in taking a loan or getting a new credit card in the future.

The good thing is that if you work with a little discipline, then the score can be improved gradually. Let us know 5 easy solutions-

1. Understand the difference between Settled and Closed –

Settled means that you have not repaid the entire loan, whereas Closed is seen when the entire amount has been repaid. It is important to know this difference so that the right steps can be taken in the future.

2. Pay every bill on time

From now on, never pay the card dues or EMI late. Making payments on time is the first condition to improve the score.

3. Use only 30% of the limit

Do not spend more than 30% of the credit card limit. This will make the bank think that you are not too dependent on credit.

4. Do not ask for a new loan again and again

It is harmful to apply for a new card or loan again and again. Try to have different types of credit like home loan, personal loan, credit card, and pay all of them on time.

5. Do not forget to take NOC

If you have paid the bank's dues in full, then definitely take a No Objection Certificate (NOC) from them. The status should be written as Closed so that there is no problem in the future.

Keep checking the reports of credit bureaus like CIBIL, Experian, and Equifax from time to time. If there is any mistake, get it corrected immediately. If you work with patience and discipline, even a bad score can be corrected in a few years.

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