Standard Chartered Credit Card Settlement: How to Get a Negotiated Offer
If you are struggling with high credit card dues on your Standard Chartered credit card, a one-time settlement (OTS) could be an option to reduce your repayment burden. While settlement can offer immediate relief, it also comes with long-term financial consequences, particularly affecting your credit score.
This guide explains how you can negotiate a Standard Chartered credit card settlement, the process involved, and key factors to consider before proceeding.
What is Standard Chartered Credit Card Settlement?
A credit card settlement is an agreement between the bank and the borrower where the borrower pays a reduced amount to settle the outstanding debt. The bank may waive a portion of the interest, penalties, or fees, allowing the borrower to close the account without repaying the full dues.
Once a settlement is completed, the bank reports the account as “settled” instead of “paid in full”, which can negatively affect your CIBIL score and future loan eligibility.
Who Can Apply for a Credit Card Settlement?
You may consider Standard Chartered credit card settlement if:
- You have missed multiple credit card payments and cannot afford to clear the full amount.
- Your outstanding balance has grown significantly due to penalties and high interest rates.
- You are receiving collection calls, legal notices, or recovery threats from the bank.
- You are facing financial hardship due to job loss, medical emergencies, or unexpected financial burdens.
How to Negotiate a Standard Chartered Credit Card Settlement
If you are considering settlement, you need to approach Standard Chartered and request a negotiated offer. Here’s a step-by-step guide to help you:
1. Assess Your Financial Situation
Before negotiating, analyze your income, expenses, and savings to determine how much you can afford to pay in a lump sum settlement.
2. Contact Standard Chartered’s Debt Recovery Team
Reach out to Standard Chartered’s customer care or collections department to discuss your financial difficulties. The bank may offer different solutions, such as:
- Loan restructuring to reduce your EMIs
- EMI conversion plans for easier repayment
- Settlement offers with partial waivers
3. Request a Settlement Offer
If you are unable to clear the dues in full, request a one-time settlement offer. The bank may offer a negotiated amount depending on:
- The total outstanding balance
- Your financial situation
- The duration of the overdue amount
You should aim to negotiate for a lower amount and request waivers on penalties and interest charges.
4. Get the Settlement Terms in Writing
Before making any payment, ensure that Standard Chartered provides a written settlement agreement stating:
- The final settlement amount
- The payment deadline
- A confirmation that the account will be closed after payment
Do not make any payments based on verbal assurances.
5. Make the Payment Before the Deadline
Once you accept the settlement offer, make the payment within the agreed timeframe. Keep a payment receipt as proof of settlement.
6. Obtain a No-Dues Certificate (NOC)
After completing the payment, request a No-Dues Certificate (NOC) from Standard Chartered. This document confirms that there are no further dues on your credit card.
7. Check Your Credit Report
The settlement will be reported as “settled” instead of “closed”, which may affect your CIBIL score. Regularly monitor your credit report to ensure there are no discrepancies.
Impact of Credit Card Settlement on Your CIBIL Score
While settlement helps in reducing debt, it negatively impacts your creditworthiness. Some key effects include:
- Lower Credit Score: A settled status on your credit report reduces your CIBIL score, making it harder to get loans in the future.
- Reduced Loan Eligibility: Banks and lenders view settled accounts as a risk, affecting your chances of getting credit cards, personal loans, or home loans.
- Record Stays for Seven Years: The settlement will remain on your credit history for up to seven years, impacting your financial credibility.
Alternatives to Credit Card Settlement
If you want to avoid credit score damage, consider these alternative options:
- Convert Outstanding Balance into EMIs: Standard Chartered offers EMI conversion plans for easier repayment.
- Balance Transfer to Another Credit Card: Transfer your outstanding amount to a low-interest credit card.
- Negotiate a Lower Interest Rate: Request the bank to reduce the interest rate on your dues instead of opting for settlement.
- Debt Consolidation Loan: Take a personal loan to clear your credit card debt without affecting your credit score.
Final Thoughts
While Standard Chartered credit card settlement provides short-term relief, it has long-term financial consequences. If you choose to settle, negotiate carefully, get written confirmation, and focus on rebuilding your credit score after the settlement.
If you need assistance in negotiating a fair credit card settlement with Standard Chartered, Settle Loan can help you secure the best deal while protecting your financial future.
