What are Credit Reviews?
Credit review is the periodic evaluation of a person’s credit profile. Credit reviews may be performed by credit counselors, creditors or settlement companies. Well generally speaking, credit reviews are done by entities that provide borrowers with credit services or creditors themselves. As a matter of fact, the information used in credit review is based mostly on soft inquiry which is not affecting the credit score of borrower.
Creditor reviews – creditors might do regular credit reviews on borrower’s account to guarantee that they will keep on meeting the standards of credit product. The review might be known also as account review or account monitoring inquiries. Generally, if the lender has performed an account review, the information will be obtained from the soft credit inquiry.
Most of the time, creditors are requesting the borrower to provide an updated personal detail together with credit reviews. In such case, lenders will be providing the borrower with credit increase upon the completion of the credit review. There are numerous lenders who are reviewing the account of the borrower every 6 months to 1 year to offer an increase of their credit limit. In credit limit increase review, the lender normally requires outstanding payment history. For this reason, most lenders reward borrowers who have beautiful payment history by way of boosting their credit limit.
Credit counseling services – borrowers have got multiple options when it comes to credit counseling services. But you should know that these choices will slightly vary depending on the applicant’s situation and oftentimes, will require credit review to give the best credit advice. Credit counseling entities are available to give sound advice on any borrowers of new credit products, credit settlement and credit consolidation. The settlement companies and personal credit attorneys are available as well to support the borrowers to negotiate the debt settlement.
Many of the distressed borrowers might opt to work with a profit settlement company or credit attorney as a way to settle their debts. To provide the best possible service, both entities need full credit review of the borrower’s complete profile.
Settlement companies will be reviewing all open accounts of borrowers in credit review to be able to identify the potential for debt settlement. Settlement companies usually work with borrowers with different delinquencies and requesting borrowers to stop payments on their debt only to give the more negotiating power. Rather than paying the monthly debt, settlement companies require borrowers to make reduced monthly payment to escrow account which begins to accumulate overtime for negotiated settlement payoff. For distressed borrowers, they can choose to hire a credit lawyer if they’ve opted to file a bankruptcy.