How to correct your credit report after a settled loan

1/5 Why settled loans can damage your credit health

When you "settle" a loan, most of the time it is because you paid less than what you owed, typically because you were strapped for cash. While it may have been the most financially savvy thing to settle at the moment, lenders also indicate it as "settled" rather than "closed," which negatively affects your credit report. This will be on your credit report for up to seven years, affecting your chances of getting new loans and credit cards, although you've made good financial health again.

2/5 Verifying your credit report for accuracy

The first thing to correct the error is to draw your last credit report from institutions like CIBIL, Experian, or Equifax. Make sure the settled loan still shows and verify all other details like dates