Credit review is the evaluation of a person’s credit profile periodically. There are many entities that may perform credit reviews such as creditors, settlement companies or credit counselors. Generally speaking, credit reviews are carried out by entities that then provide borrowers with creditors or credit services 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. Say that the lender has carried out account review, then the information is received from 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 many lenders who perform a review of the person’s account at least every half year to 1 year before they offer them an increase to credit limit. In credit limit increase review, the lender normally requires outstanding payment history. With this in mind, a lot of lenders are rewarding borrowers on a regular basis that have flawless payment history by upping their credit limit.
Credit counseling services – borrowers have several options when talking about credit counseling services. These options varies on the applicant’s situation and most of the time, will require credit review to be able 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 as well as personal credit lawyers are easily accessible to support borrowers in negotiating for debt settlement.
In settling debts, a big number of distressed borrowers may actually decide to work with profit settlement company or credit attorney. To provide the best possible service, both entities need full credit review of the borrower’s complete profile.
As a way to identify the potential for debt settlement, these settlement companies will be reviewing all open accounts of borrowers in credit review. Settlement companies normally work with the borrowers with various delinquencies as well as request that borrowers stop payments onto their debt just to give them more negotiating power. Instead of paying monthly debt, settlement companies need borrowers to make reduced payment every month to escrow account which starts to accumulate overtime for negotiated settlement payoff. Distressed borrowers may opt to work with credit lawyer if they have opted to file bankruptcy.