All About Credit Reviews
Reviewing the credit profile of a person periodically is what credit review is about. 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. The information that is used in credit review is typically based on soft inquiry which doesn’t affect the credit score of the borrower.
Creditor reviews – creditors can be seen performing regular reviews on the borrower’s account; this is to ensure that they keep on meeting the credit product’s requirements. The review might be otherwise called as account review or account monitoring inquiries. In general, if the lender performs account review, the information will be acquired from soft credit inquiry.
The creditors typically request that the borrower provide updated personal details along with the credit review. After completing the credit review, the lenders will now provide borrowers an increase to their credit limit. 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, lenders usually require an 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 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. These credit counseling entities are available to advise any borrowers of the 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.
A lot of distressed borrowers can choose to work with profit settlement company or credit attorney to be able to settle their debts. Both entities need full credit review of complete credit profile of borrower to provide the best possible service.
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 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. If for example that some have chosen to file a bankruptcy, then can decide to hire a credit lawyer to help them out.