How to remove 'Settled' status from CIBIL report?

[raaj.bhalla]

Hi,

I had a credit card with Citibank and I was unable to make regular payments due to tight financial situation. Later bank offered me to settle the card in around 2008. I had to pay only the principal amount which was around Rs. 11000 and rest approx same amount of Rs. 11000 which bank would not ask for.

They sent me the settlement letter and I Paid according to the plan in 12 EMIs.

Now I recently received my CIBIL report which I had requested as twice my loan got rejected. In the report, status against my Citi CC shows 'Post (W/O) settled'. The report also shows 6 more loan accounts which have clear payment history with not even a single overdue. I have called citibank to change the status to settled. But I have read online that creditors take 'settled' negatively too and I might have problems in getting a loan sanctioned against my name.

Also, my CIBIL Transunion score is healthy 814 and rating of 1.

1. How can I remove 'settled' from my CIBIL report so that my credit history is clean?
2. How much impact does 'settle' have not sanctioning of loan?
3. Is there any cooling off period after which 'settled' status against citibank will be null and void as I improve my credit history basis current car loan that I have?

Pls help.

Thanks,
Raj Bhalla

[cardbhai]

1. As on Today the Settled Status can be removed after having cleared entire Dues. See if you can re-negotiate with Citibank and get it removed.

2. The Creditors view you as Bad Client. Settled will confirm that you were a Bad Client Previously. Some Dare Devil Creditor during extremely good economy may risk offering you LOAN but he will demand higher interest rate [Well, makes no sense to me, but you see Bankers are sitting for business]

3. RBI wanted to help consumers who have "Settled" but bankers objected. Bankers argument is everybody will start defaulting and settling and if  RBI asks to forgive them, the entire Unsecured Loan folio will be at risk. Thus, the matter got suppressed.

As of now, the only option for you is as mentioned in Point 1.

Best.