New Delhi, Sept. 4 -- Settling a credit card debt can provide much-needed financial relief, but it often leaves a lasting dent on your credit score. A settlement typically reduces your score by 75 to 100 points and leaves a "settled" status on your report, signalling repayment difficulties to lenders for up to seven years. While this can hinder access to loans and credit, disciplined financial behaviour can help you rebuild your credit health over time.

Manish Shara, Co-founder and CEO of ZET, says, "After settling your credit card dues, improving your credit score is a gradual process built on discipline. The first step is ensuring every future payment, whether a card bill or a loan EMI, is made on time without exception. Keep credit ut...