What is Axis Bank SELECT Credit Card Settlement?
Credit card settlement with Axis Bank SELECT means resolving outstanding dues by paying a negotiated amount (less than the total due). It’s a one-time resolution for those facing financial hardship.
When Should You Consider Settlement?
- Lost job - Medical emergency - Financial crisis - Unable to pay EMIs for over 90 days - If you can’t pay the full amount, the settlement might be a last resort option.
Impact on CIBIL Score
- Warning: Settlement reflects as “Settled” on your credit report, which is a negative mark. - Your credit score may drop by 75–150 points or more.
Step 1 – Contact Axis Bank
- Call Axis Bank customer care or visit your branch. - Explain your situation honestly. - You can also email your request for settlement.
Step 2 – Negotiation Process
- The bank will evaluate: - Reason for default - Repayment history - Financial documents - Then, they may offer a settlement amount (usually 50–80% of the total due).
Step 3 – Settlement Agreement
Always ask for a written settlement letter from the bank. It should mention: - Due date - Settlement amount - Waiver on balance
Step 4 – Make the Payment
- Pay the agreed amount by the deadline. - Get an official acknowledgement receipt after payment.
Step 5 – Get a NOC (No Objection Certificate)
- After payment, ask Axis Bank for an NOC. - This proves you have no outstanding dues left on the card.
Future Credit Card or Loan?
With a “Settled” status on your credit report: - Loan approvals may get rejected - Credit card applications may face denial - It stays on your report for 7+ years.
Final Tips
- Try for full repayment before settling - Use settlement only if unavoidable - Rebuild credit by paying future dues on time - Check the CIBIL report after the settlement