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After you pay your last EMI to the bank,you should have ideally received a receipt for this along with a settlement document. This is required proof for having repaid the loan in full. Armed with this proof,you should not have trouble securing another loan.

Do take up the issue with the bank,if these documents have not been handed over to you. Also,remember that even if you have settled your loan after defaulting on your EMIs then the bank you approach for a fresh loan can reserve the right to grant you a loan or offer one at a high interest rate.

Two years back there were erroneous charges reported on my spouse8217;s credit card and in spite of communicating this to the bank they insisted we pay it up and refused to cancel the charges. My spouse has closed the card since then,but now am wondering if his name will show up in Cibil?

Piyush Singh,Delhi

Defaults as a rule are reported to Cibil. The information that you have settled the pending credit card dues,also is sent to Cibil to be updated in your record. If an item is under dispute that is specifically flagged in your credit report and the result of such a dispute is usually awaited by Cibil before it takes an effect on your credit score.

I have several personal loans and high credit card dues to be paid. Which one should I settle first?

Vivek Dwivedi,Mumbai

Credit cards charge you the highest interest rate,hence try to close them off at once before debt spirals out of control. The next in order are personal loans. If you are unable to close them immediately try to convert them into a secured loan by pledging some of your assets rather than liquidate them as such a loan comes at a comparatively lower interest rate,which might be managed better with your monthly income..

The expert is CEO,Bankbazaar.com
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