CIBIL: How to improve CIBIL score after credit card settlement? Know the important measures

CIBIL score : If you have not paid your credit card in full due to any financial crisis and have got it settled, then this is definitely an immediate relief, but it can affect your future financial situation. This is because your account is recorded as “settled” status in the CIBIL report, which indicates to the banks that you were unable to pay the outstanding amount in full. This can damage your credit score and create difficulties in getting a loan or credit card in future.

How to improve CIBIL score after credit card settlement?

However, there is no need to panic. By adopting some measures, you can strengthen your CIBIL score again.

🔹 1. Check CIBIL report

The first step after settlement is to get your credit report from CIBIL and check the details recorded in it. If any mistake or old data is seen, then file a complaint to correct it immediately.

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🔹 2. Pay off the remaining loans

If you have other loans, try to pay them off on time or early. This proves your financial responsibility.

🔹 3. Reduce credit utilization

Do not use more than 30% of the amount on any of your credit cards. A low credit utilization ratio leads to a positive change in the score.

🔹 4. Make timely payments

Pay every bill or EMI on time. Take the help of auto debit or reminders so that there is no delay.

🔹 5. Do not apply for credit frequently

Constantly applying for new loans or credit cards can have a negative impact on the score. Apply for credit only when needed.