New Delhi, July 30 -- Repaying loans becomes complicated when debtors are in a financial bind. As a result of the type of repayment status, lenders may classify an account as either "settled" or "written-off" under many circumstances. Anyone who is trying to maintain or repair a healthy financial picture should know the differences between these two account types on a credit report.

An account is considered "settled" after a discussion with the lender, where the borrower pays some of the total owed. This typically happens when the lender has agreed to treat the agreement as final settlement of the debt and to accept a partial payment since the borrower is unable to repay the total amount.

While this may seem like a positive outcome, it ...