New Delhi, May 28 -- A loan default can be a huge emotional and financial blow. Besides damaging your credit score, it may affect any future lending opportunities you will have. But don't worry, you can fix your credit profile and financial situation if you take the right steps and get on the right path.

A borrower defaults when they stop repaying a debt as agreed, typically after a string of late payments. It also can remain on your record for up to seven years and negatively affects your credit report, resulting in a major drop in credit score.

This means reviewing your credit report from all the major bureaus- your first step in the recovery process. Look for:

Once you notice errors, dispute them with the credit bureau and request a...