Understanding credit issue

[credit.stress]

Dear Sir
I had taken multiple credit cards and defaulted on payments on all of them on account of sheer negligence. Today , i get refused for home loans, credit cards from all banks despite settling all the outstanding with all the banks at a negotiated amount (less than total outstanding ).
Recently i obtained my CIBIL report and it mentions the names of all the banks and status as "settled". These settlements have taken place 1.5 years back.

My question is despite settling the accounts my CIBIL report still looks bad and i get refused by all the banks - what is the way out?
Do i need to pay up total outstanding amount of all the banks and not the negotiated settled amount to be able to obtain loans, credit cards.

pls advice.
thanks

[sunil]

Glad to Know Credit Bureaus are really working as expected denying bad credit to bad Borrowers and thus preserving the system from a sub-prime kind of crisis in India.

[cardbhai]

Well, we don't have a sub-Prime like crisis, it is an exaggeration, but yes, Banks have become cautious turning down loans for defaulters.

Settled - Means, you have negotiated for a lesser amount than what you owed.

Read and Understand the Problem of the Banks as well [as they function according to RBI] http://credit.cardbhai.com/2010/06/cibil-defaulters-clean-history-why-not.html

Hope this explains on why nobody want to lend to you.