This is where we can negotiate OTS with a credit clearance, which means that this settlement will not adversely affect your credit score and your credit file will reflect “NIL” against the debt.

When a settlement is made without credit clearance, the creditor will inform the credit reference bureaus to reflect an entry against the debt as “Settled” (except in written off cases where it shall reflect as “Write Off”) and the bureaus do not delete these records in such cases. These entries will adversely affect your credit score and any future loan applications from financial institutions.

In case, you want to have these entries removed and “NIL” outstanding dues, the settled account needs to be paid fully, that is the balance principal amount, if any, along with balance and accumulated interest.

We will negotiate with the creditors to issue a “No Dues Certificate” (NDC) or a “No Objection Certificate” (NOC) that will be stated on your settlement letter and the credit reference bureaus will be updated with “NIL outstanding” or “Closed”, this will not affect your credit score and in many cases will improve your credit score.