Loan: Your credit score deteriorates as soon as the loan is settled, know how you too can get the defaulter tag removed.

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Internet Desk. If you have ever taken a loan or used a credit card and due to some reason have not been able to pay the EMI or bill, then the financial burden on you keeps increasing. There comes a time when you have to make settlement and then your credit score gets spoiled. In such a situation, you are not able to get any loan further. That means you are declared a defaulter by the bank. In such a situation, today we will know how you can improve your credit score.

Reasons for deteriorating credit score

Loan settlement is also mentioned in your credit history. When you settle the loan, your loan account is written as ‘settled’ and its credit score is reduced. If the loan borrower settles more than one credit account, the credit score gets further reduced.

how to improve credit score

If you ever need to take a loan, it will be possible only if you improve your credit score. The way to do this is that when you become financially capable, you go to the bank and pay your dues i.e. whatever exemption you got in principal, interest, penalty and other charges. That is, you should pay the things on which concession was given to you during loan settlement. After this the bank will close your loan completely and your credit score will become correct.

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