5. Why You Should Not Go For a Settlement

“This is one option you should try to avoid at all costs. In this case, the credit report will show the credit card account as settled and written off,” said V. N. Kulkarni, chief counsellor, Abhay, a credit counselling initiative of Bank of India, reports Outlookmoney.com.

However, lenders don’t look at such reports favorably and might put a bad record on you credit score and you may not get any kind of loan from any financial organization in future. Various financial institutions have different deliberations to decide the creditworthiness of applicants.

Bottom Line:

You are not suggested to avoid using your credit card completely, but simultaneously one should not forget the pros and cons. Credit card debts are difficult to handle because of high interest rate and fine related with them. And again, it will not be a waste if you always remember the famous phrase “Prevention Is Better Then Cure”.

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