Points to Keep in Mind While Closing Your Negative issues

• No Due Certificate: After paying your outstanding dues in full, obtain a ‘No Due Certificate’ from the lender. This is the proof and indication that you have closed the loan completely.

• Incorrect Closure of Credit Card: Sometimes, the credit card issuer might offer you discount on closing the outstanding dues on your credit card. Lured by the offer, you might tend to settle for 80% or 90% of the amount to be paid. However, this is not a complete closure. The discount will not be taken into consideration by the bureaus and eventually you remain with bad credit.

• Removing negative issues off your credit report does not mean it will improve your credit score, it can only prevent a further drop. You should have a loan or credit card account active to get an improved credit score over a period.

Becoming credit healthy does not happen in a day. You will have to be patient as there is a certain procedure followed across all banks and credit bureaus. Get your credit report and check for any errors on it. By raising a dispute resolution with the lender and credit bureau, you can get the errors removed. Your credit score is the reflection of your credit health. Just like taking care of your physical well-being, it’s vital you take care of your credit health to get attractive terms and quick approval on your loans.