If you have an existing Credit Card or planning to Apply for a New Credit Card, you must know how to read a credit report. There are four different statuses of accounts.
|Card Types||Annual Fee||Rewards and Benefits|
|SBI SimplySAVE Card||Rs. 499||1 reward point for every 100 Rupees spent on other purchases and payments.|
|HDFC MoneyBack Card||Rs. 500||Earn 2 Reward Points on every Rs 150 spent|
|CITI Cash Back Credit Card||Rs. 500||5% cash back on movie ticket, telephone bill payments, utility bill payments|
|ICICI Bank Coral Credit Card||Rs. 500||2x cash reward points on dining, groceries, supermarkets bills|
These accounts are live in the system. The report will also show the outstanding balance in the account.
You have closed these accounts in the ordinary The banks report the transaction to the credit bureaus accordingly. You will find the remark ‘Closed’ along with the date of closure of the account.
These accounts are also closed, but not in the ordinary You have negotiated with the bank for a settlement, and the bank has agreed to it. Such accounts have the remarks ‘Settled’ against their name.
The bank has tried to recover these accounts from you. On failing to do so, they have written it off from their books. However, you still owe these amounts to the banks. Such accounts reflect as ‘Written Off’ accounts in the credit report.
In the ordinary course, these accounts remain for seven to ten years. The written-off accounts can remain for more extended periods as well. The settled and written off accounts are a blot on your credit history. It is better to deal with them appropriately and improve your credit score.
You cannot do much about the settled accounts as you have already adjusted the accounts with the banks. The written-off accounts have a more significant impact on your credit score as compared to the settled accounts.
In case of written off accounts, you can take the following steps to set them right:
These steps can improve your credit score. Therefore, you will be able to browse for the Best Credit Card Deals once your credit score crosses 700 or 750. Now, you need not worry and ask the question, “How Can I get a Credit Card if I have settled accounts in my profile?”
Also Read: 6 Healthy Habits for Credit Card Users
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