Everything Important 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. In general, credit reviews are executed by entities that are providing borrowers with credit services or the 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 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 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.
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 many lenders who review the borrower’s account every 6 months to a year to offer them with increase of credit limit. In credit limit increase review, lenders usually require 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 – in relation to credit counseling services, there are many options that borrowers can have actually. These said options vary depending on the situation of the borrower and typically, requiring credit review in order 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. 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 usually work with borrowers with different delinquencies and requesting borrowers to stop payments on their debt only to give the 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.