New Delhi, April 11 -- A 'settled' loan status on your credit report can actually unsettle your aim of borrowing funds. 'Settled' is not a positive thing in the world of raising money. If you have a 'settled' loan recorded in your credit report, then you have to change it as it will have an adverse effect on your ability to borrow.

A 'settled' loan is different from a 'closed' loan and is actually an arrangement with the lender wherein you pay a certain mutually agreed amount because of your inability to pay in full due to an emergency. You can change your 'settled' loan status to a normal one by following certain clearly laid down steps established by lenders and credit bureaus. Here is a guide on what 'settled' loan status in a credit ...