New Delhi, Aug. 21 -- Settled personal loans wrongly marked on credit reports can continue to drag and bring down an individual's credit score. Such wrong entries on loans can complicate future borrowing. Fortunately for proactive and well-aware borrowers, there are clear steps to remove such marks. This helps in restoring your credit profile and its creditworthiness. It also assists in opening up better financial opportunities.

A 'settled' loan status simply means that the loan was closed after paying less than the full amount owed. Now, this clears the debt, still it negatively impacts the borrower's credit score. As lending institutions see it as an incomplete repayment.

It is important to keep in mind that such marks can remain on c...