Will a credit score improve after debt settlement?

No, a debt settlement generally does not improve your credit score immediately. When you settle a debt, it means you paid less than the total amount owed, which is reported as settled by credit bureaus like CIBIL. This negative remark indicates you did not fulfill the original agreement and can significantly lower your score. While it is better than leaving a debt unpaid, the record remains on your credit report for up to seven years. Recovery is gradual and requires consistent on-time payments on other obligations.