Crawling Out From The Settlement Hole
Reader Mukesh is looking to bring his CIBIL score back from the depths after three settlements.
I have settled my three credit cards past five years back now i want loan
But these credit cards settlement are spoiling my Credit score please suggest
Hello Mukesh! Thanks for your email, and you certainly are not alone. Many people find themselves in this situation after settlements. While settlements do hurt your score for awhile, it does lift a weight off your shoulders to not be under debt anymore. This does not come without a price however, as you now have to battle back and take your score back to it’s previous heights.
In this case, I am sorry to say that the best remedy for this is time. Debtors have a long memory and it will take a year or 2 of credit rebuilding to bring your CIBIL score higher once again. The number one thing you can do to get on the path to CIBIL recovery is find and apply for a secured credit card.
A secured credit card is backed by your own fixed deposit, and many banks are beginning to offer these. Though they are not traditional credit cards, your on time payments to them are still reported to the credit bureaus. So good, steady repayment on the card will absolutely build your credit over time. Treat the secured card as cash, always pay in full when your bill comes due – leave no balance. Show credit responsibility and your CIBIL score will soon raise for your efforts.
Best of Luck To You!
If you have a credit question for us, just ask us here! We do our best to reply to everyone.
- I’ve Lived Outside India For 20+ Years, Do I Have A CIBIL Score? - 25/09/2017
- Still Have A Low CIBIL After NOC From Settlement? - 20/09/2017
- Can Changing Your Mind On A Credit Card Hurt Your CIBIL? - 17/09/2017
- CITI Promoting “Experience The New” Travel Campaign - 06/09/2017
- Ask CreditSmart: Tips When Paying Off Credit Card Debt - 29/08/2017