Credit Score: Can loan settlement affect your credit score? Its disadvantages and ways to remove tag
Many people do not know that loan settlement has a negative impact on their credit score. The loan settlement tag on your loan account can create difficulties in taking a further loan. If you apply for a credit card, you may not get a high limit because of the tag.
The tag of your settled loan can remain in your CIBIL credit report for the next seven years. Photo: Pixabay/Representational