Question
Q: Does payday loan settlement affect credit score?
Answer
A: It can affect your score because it shows that you won't be able to pay back as much as you would if you paid in full. However, the effect depends on your overall profile. The bigger danger is wrong tagging, like showing overdue even after settlement. This must be quickly disputed with documents. If the lender threatens you to settle, it could lead to criminal law protections on the facts. Legals365 and Advocate BK Singh take care of legal settlement terms and keep you safe from false reporting..
By Advocate BK Singh
(Delhi High Court)
