New Delhi, Aug. 7 -- If you have a huge credit card bill and are now contemplating settling the same with the bank, then you should think again! This could be quite damaging for your credit score. It is worth remembering that 'settlement' does not lead to 'closure'.

When such a transaction takes place, it is reported to the credit bureaus such as CIBIL and CRIF High Mark. And what follows is the poorer credit score.

We spoke to some experts to dig deeper into this. And these are the reasons they shared to avoid taking this route.

I.Drop in credit score: When you opt for settling of dues, it leads to a steep drop in your credit score. This is because when you settle your credit card dues, the same is reflected in yourcredit report and r...