Loan Settlement vs. Closure: Key Differences Explained

When you have a loan, you can either 'settle' it by paying less than what's owed or 'close' it by paying everything.

Settling a loan helps now but hurts your credit score, making it hard to borrow later.

Closing a loan is good for your credit score.

Settling involves a smaller payment, while closure requires paying all dues.

Carefully consider the pros and cons to make the best choice.