What are Credit Reviews?
Credit review is the evaluation of a person’s credit profile periodically. These credit reviews could be performed by credit counselors, settlement companies or creditors. 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. As for this review, it can be referred 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. After completing the credit review, the lenders will now provide borrowers an increase to their credit limit. 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. When it comes to credit increase review, you can see lenders to be demanding an outstanding payment history. Therefore, most lenders are regularly rewarding borrowers with remarkable account payment history by means 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 and personal credit attorneys are available as well to support the borrowers to negotiate the 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.
Settlement companies are going to review all of the open accounts of borrowers in credit review in order to identify potential for debt settlement. 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. 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.