Should Continue with Settled Credit Card ?

[sharathdotc]

Hi CardBhai

I am working with Bank to settle my good old credit card ( Issues in 2005 , Last used in 2006 and I was contacted in 2016 for credit history clearance). The current status is "write-off" in CIBIL and bank promised to change the status to "NIL Outstanding" once the payment is done and also offered to re-initiate my credit card.

Now that I am planning to clear the amount (agreed to pay around 35k out of 1.35 lacs pending where the actual principle is 20k only)and post which should I get the account closed or re-initiate the card and maintain it for couple of days.
I had many cards in the past , closed all of them and using ONLY ONE from last 10 years with a credit limit of 7 lacs and monthly using limit is around 50k which I pay every month without fail.

NEED UR SUGGESTION WHETHER I SHOULD CLOSE THE CARD THAT I AM SETTLING WITH THE BANK OR GET IT RE-INITIATED . Which option can help build my history. I thought continuing would help as I will get to know if the bank has really closed all the pending accounts

Your advice would be of great help for me and also will remain as knowledge base for viewers

Thanks
Sharath

[cardbhai]

Good Deal.

1. First get the offer for Settlement in Writing from the bank.
2. Pay Rs 35,000 using A/C Pay Cheque only and preserve this statement along with the Settlement Offer Letter from the bank for your lifetime.
3. If all goes well start using the card and pay off in full every month. Older the Credit Account, better for the credit history.