How to clear settlement from credit history

[AmritSaroe]

So one of friend was late on his last EMI installment he paid full money but on last payment the loan guy said he would settle it. My friend didn't understand it and went with it, now his settlement shows in his credit report and he is facing issues applying for a loan. I don't understand settlements myself so happy to from you guys

 

[ShavirB]

Loan Settlement means that you've paid less than what you were supposed to pay to the Bank. Loan settlement is really bad for Credit Score. Your Credit Score can take a hit of upto 70-100 points if Loan Settlement appears on it. But the most horrific part is that this stays on your credit history for 7 Years, that means it'll become extremely tough for your friend to take any kind of Loan or Credit Card for the next 7 Years.

I would strongly recommend your friend to immediately clear all dues and get the word 'Loan Settled' removed from Credit Report

 

[AmritSaroe]

Loan Settlement means that you've paid less than what you were supposed to pay to the Bank. Loan settlement is really bad for Credit Score. Your Credit Score can take a hit of upto 70-100 points if Loan Settlement appears on it. But the most horrific part is that this stays on your credit history for 7 Years, that means it'll become extremely tough for your friend to take any kind of Loan or Credit Card for the next 7 Years.

I would strongly recommend your friend to immediately clear all dues and get the word 'Loan Settled' removed from Credit Report

i will check his credit report myself, but if he clear his dues then the settlement word will go from the credit history?

 

[ShavirB]

i will check his credit report myself, but if he clear his dues then the settlement word will go from the credit history?

Mostly yes, but please take a confirmation from the Bank before making the final payment

 

[AmritSaroe]

Mostly yes, but please take a confirmation from the Bank before making the final payment

Wait a minute if I liquid my funds from a fixed deposit before the maturity I won't be getting any interest? That's absurd

 

[ShavirB]

Wait a minute if I liquid my funds from a fixed deposit before the maturity I won't be getting any interest? That's absurd

Guessing this message was for some other thread

 

[AmritSaroe]

Guessing this message was for some other thread

Yeah, I think we should have a app Android/iOS. We have built a finance community in long run for sure

 

[ShavirB]

Yeah, I think we should have a app Android/iOS. We have built a finance community in long run for sure

absolutely, feedback taken