Credit card settlement means that the borrower has repaid all or part of the credit card bill. Reconciliation can be voluntary or compulsory. Voluntary settlement can be due to the borrower's own economic considerations, or it can be due to the expectation that overdue repayment will damage his credit score. The compulsory settlement may be due to the borrower's failure to pay the arrears on time, and the bank chooses to take litigation and other means to recover the arrears.

Credit card settlement usually means reducing the borrower's debt. For some people with high credit card debts, clearing the accounts may be a way to escape from the debt crisis. Even if you can't pay off all the debts, clearing the accounts can reduce the pressure of debts. For banks, clearing accounts means that their debts are recovered, although clearing accounts may have a negative impact on banks' income.

Before clearing the credit card, the borrower needs to seriously consider the advantages and disadvantages of clearing the account. On the one hand, clearing accounts can effectively reduce the debt burden of borrowers and help them get rid of economic difficulties. On the other hand, clearing the account may affect the borrower's credit score and have a great impact on his future loan and credit performance. Therefore, the borrower needs to make careful analysis and evaluation before clearing the account to determine the best payment scheme and liquidation strategy.