New Delhi, April 16 -- While repaying a credit card debt can provide immediate financial freedom, it also often causes a credit score to drop. Once you have settled a debt, it is important to rebuild your credit if you have future financial plans. This article lists useful ways to improve your credit score after a settlement.

In debt settlement, a debtor negotiates to pay less than is owed to creditors. While this may relieve some immediate financial burden, a settlement typically remains on your credit report with the status of "settled," which can dissatisfy your credit score and represent you as a risk to future lenders.

In conclusion, while the payment of credit card debt can have an immediate positive impact on your credit score, a...