HI,
In 2011 I took bank credit card, in 2013 I used 60k from that card. then after I lost my job and I changed the state due to job purpose. I could not able to pay that amount. But I did not know that stage about CIBIL.
in 2016 I applied for a loan, it got rejected because of CIBIL.
Frequently getting emails from the bank to pay the outstanding amount. Now the total outstanding amount showing Rs 2,40,000. Now I would like to pay some amount, If I settle that credit card will I get any future loans are there any other approaches please provide your valuable solutions for my problem.
Thanks, advance
2 Answers
Best Answer
Hi,
Suggest you to kindly contact the concerned banker/credit card issuer and go for settlement option.
You can let them know how much you can clear and they will let you know about the possibility of closure of this pending dues. In case, they agree for your settlement plan, you can pay the agreed amount, take settlement letter from them and request them to update the same to CIBIL.
After going for settlement, you can contact CIBIL as well and update them about the settement.
It takes some time to improve your CIBIL score after this!
Kindly read :
https://www.relakhs.com/complete-guide-bank-assess-credit-health/
https://www.relakhs.com/errors-credit-report-case-study/
https://www.relakhs.com/credit-score-works-calculated-factors/
https://www.relakhs.com/settling-credit-card-dues-cibil-status/
https://www.relakhs.com/a-negative-credit-score-can-hurt-your-job-search/
https://www.relakhs.com/maintaining-a-good-credit-score-can-save-money/
Hi,
You have three options here ;
Closed: If you find a date adjacent to the 'Closed' field in your account section, this means that that loan account has been closed by the lender. In other words, it means you have paid off your loan in full and the bank has reported this account as "Closed" to CIBIL.
After closing a loan it is important to obtain a No Dues Certificate (NDC) from the lender, banks issue a No Due Certificate (NDC) or Closure Letter while closing loans stating that the loan stands closed .. Settled: If you have partly paid the dues and settled a loan or credit card then the status will reflect as "Settled" in your credit report. When you settle an account, it means that the credit institution is agreeing to accept a payoff amount that is less than the amount originally owed. Because the lending institution is taking a loss, a status of "settled" may be considered potentially negative and detrimental to the chances of loan approval.
It is important to understand that though there will be no impact of the "settlement" flag on your CIBIL TransUnion Score, your credit history will show a "Settled" status in your CIBIL Report and there will be Days-Past-Due reflecting on the report since the payment on the loan has not been timely. Each bank has its own policy of viewing a "Settled" status and will decide on your future loan applications accordingly.
Written Off: When you are not able to make payments against the outstanding loan/credit card amount for more than 180 days, the lender is required to "write-off" the amount in question. The lender then proceeds to report this on your CIBIL Report as "Written off". This is a detrimental status for the approval of your loan or credit card applications as the lender may not want to provide a loan or credit card to someone who has not paid dues on past loans or credit cards. (Source : ET) So, choice is yours.
After closing a loan it is important to obtain a No Dues Certificate (NDC) from the lender, banks issue a No Due Certificate (NDC) or Closure Letter while closing loans stating that the loan stands closed .. Settled: If you have partly paid the dues and settled a loan or credit card then the status will reflect as "Settled" in your credit report. When you settle an account, it means that the credit institution is agreeing to accept a payoff amount that is less than the amount originally owed. Because the lending institution is taking a loss, a status of "settled" may be considered potentially negative and detrimental to the chances of loan approval.
It is important to understand that though there will be no impact of the "settlement" flag on your CIBIL TransUnion Score, your credit history will show a "Settled" status in your CIBIL Report and there will be Days-Past-Due reflecting on the report since the payment on the loan has not been timely. Each bank has its own policy of viewing a "Settled" status and will decide on your future loan applications accordingly.
Written Off: When you are not able to make payments against the outstanding loan/credit card amount for more than 180 days, the lender is required to "write-off" the amount in question. The lender then proceeds to report this on your CIBIL Report as "Written off". This is a detrimental status for the approval of your loan or credit card applications as the lender may not want to provide a loan or credit card to someone who has not paid dues on past loans or credit cards. (Source : ET) So, choice is yours.
Please login or Register to submit your answer
Thank you very much Sreekanth for your valuable answer.
If bankers agree with settlement, I ll go for settlement , But I have once doubt here,
I read some forums like once we settle the card , there is no more loans in future like is it true?. If not as per your idea how many months/years will it take to update CIBIL to get loan approval in future. Please Sreekanth guide me on this problem