Personal Finance Tips
5 min read
From Waiver to Recovery: Strategies to Improve Your CIBIL Score After Settlement
An important consideration when evaluating your creditworthiness for credit cards and loans is your CIBIL score. A poor score can seriously impair your ability to obtain credit, particularly after a settlement with a bank or other financial institution. Settlements, in which the lender agrees to accept a smaller sum than what was initially owed, are often used as a last resort to settle debt. Although this resolves the debt immediately, it negatively impacts your credit report and lowers your CIBIL score.
