A credit card is a good way to start a credit history where you must pay all bills on time so as to not be tagged as a defaulter. However, you must compare credit card deals available in the market before selecting one. Sometimes credit card companies' executives could sweet talk you into taking a credit card and taking a credit card without knowing what it has in store for you may hamper your finances in a way that you may end up spending more than you can afford to.
Often people love to enjoy the freedom their credit card gives, and if you are one of those, you need to be wary of your spending through plastic money. If you are excessively spending from credit card without monitoring your ability to spend and pay back, then you can default at paying the credit card bills on time. This behaviour will have a direct negative impact on your credit score and creditworthiness.
Always acknowledge any debt at hand and even the one on credit card. Avoiding the problem is not going to take the debt away.
Just like settlement of loan causes damage to your CIBIL score, so does settlement on credit card loans. Though this option will give you a way out for settling the overdue amount as per your terms and agreed by the issuer, it will cause a negative impact on your credit history that will reflect for many years on your credit report. Sometimes your credit score can fall by about 75 to 100 points on loan or credit card settlement. Thus try to resolve the bill unpaid than choosing credit card settlement.